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Zara - Case Study Example

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Zara, the premier venture of Industria del Diseño Textil SA (Inditex) launched its first successful store in A Coruña, Spain in 1975 and has its headquarters in the same city. Zara contributes more than half of the total revenue of Inditex group and has grown rapidly in its…
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Zara Case Study
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Download file to see previous pages... The company has created a niche in the global retail industry through its aggressive and carefully planned out business model. The unique points of their business model that has helped them grow in relatively short time are primarily two folds. One, their turn around time that is as aggressive as it can be; where in, Zara believes in staying with the trend and comes up with entirely new chain of clothing style with in two weeks of time. They have always maintained and encouraged employees to come with clothes that are trendy and can attract customers for a certain amount of duration before going in for a complete revamp as soon as the trend is out of fashion. Secondly, its Just-In time inventory system, where it believes in having just the required amount of clothing stock. This not only helps them keeping the cost low, but also come up with entirely new style of clothing inspired from customers’ feedback in rather quick time. 
The company spends almost a negligible amount in advertising as the Zara management has always maintained that what’s important is to give the customers that they want rather than force them to buy what you have. This principle has been the backbone of the Zara retails and has been the major point of success. Before launching their business in any new region, the management does a careful planning about the outlet positioning. Zara stores invariably are situated in main commercial areas and usually attract shoppers with its attractive and trendy display of stylish clothes. At the point of billing, customer service staff take extensive feedback from customers to identify the needs and the expectations of customers, this information is strictly followed while deciding on newer products. Surveys and customer feedback also allows Zara management to keep the prices competitive and within the range that the customers are happy to pay for and yet ensuring profits for the company. The large scale volume of business also allows Zara to ...Download file to see next pagesRead More
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