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The spanish company ZARA, is an example of globalization;how and why - Essay Example

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Global marketing has been attracting growing importance in recent years and this has in fact profoundly affected the people, companies, management and…
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The spanish company ZARA, is an example of globalization;how and why
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Download file to see previous pages Zara is one of such names as it has long been impacting the life of customers and the economies of many countries that it has maintained its business-base.
This piece of research paper examines microeconomic concepts regarding economies of scale, profit strategies, effective use of resources and market forms in relation to Zara’s business and marketing landscapes. This paper aims to illustrate the global business aspects of Zara and explain how Zara has maintained sustainable business as well as competitive advantages.
Zara International Inc. is the flagship brand for Europe’s fastest-growing apparel retailer, the Inditex (Industria de Diseno), one of the largest fashion and design retail groups in the world. It runs through more than 4,000 clothing stores in more than 70 countries and 400 cities worldwide (Plunkett, p. 237). Not only the retailing strategies, but also the marketing concepts and ideologies that Zara has been implementing for its business have become better business-model and academically significant strategies. Zara runs more than 200 kids shops in some 75 countries, and sells women’s, men’s and children’s apparel to its customers worldwide. (Yahoo Finance, 2011).
As Tamer (p. 484) noted, Zara has emerged to be the leader in rapid-response retailing. Its in-house teams for designing and manufacturing its products produce fresh designs twice a week. The total turn-around time at Zara is just two weeks whereas its competitors have typically an 11-month lead time to move a garment from design to manufacturing. One of the main success factors that helped Zara achieve greater reputation and long term sustainable competitive advantage is that it has always been very fast and flexible in meeting market needs by integrating design, production, distribution and sales through out its own stores.
The supply chain system of Zara International Inc is also lightning ...Download file to see next pagesRead More
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