and these differences and similarities a multi-national organisation “ZARA” is compared with a local UK architecture firm Purcell Miller Tritton (PMT) LLP.
Zara is a renowned brand and flagship chain store of Inditex Group. It has gradually gained major popularity since its first store was opened in Spain. Zara has operated with an aggressive management style towards the business. It has proven many theories wrong, theories related to economies of scale, supply chain, etc. The company’s operation can be divided into philosophy, capability and payoff. Zara has kept a philosophy to keep 5 fingers touching the factory and five touching the customer i.e. they have kept a very quick movement between the production of their stock and the immediate transfer of that stock to the stores. Their main capability is to design, produce and deliver in 15 days as compared to the six month industry average. This is the major area in which the company has excelled over its competitors and has kept them way behind and it is because of these unique strategic capabilities that the company took over the clothing industry giant GAP in their first quarter of 2010. Zara’s main and the innovative approach is their fast fashion trend, which makes their product available in stores after just two weeks in the designing process. Besides such a fast and flashy approach, they keep their production limited i.e. the batch of clothing in merchandise is only available for just that two weeks time period and after that it is not available in the stores. This approach of scarcity and the customer’s perception towards rarity has helped Zara to boost their Revenues significantly. (Bonnin, 2002; Tokatli, 2008) The main distinctive feature about Zara is its co-operative nature i.e. every staff member of the organization is involved in some business process for the entire organization. Each store manager and the store assistant are really participative in collecting and providing information