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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
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(“The spanish company ZARA, is an example of globalization;how and why Essay”, n.d.)
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(The Spanish Company ZARA, Is an Example of globalization;How and Why Essay)
“The Spanish Company ZARA, Is an Example of globalization;How and Why Essay”, n.d. https://studentshare.org/macro-microeconomics/1580372-the-spanish-company-zara-is-an-example-of-globalizationhow-and-why.
From this analysis in the case study, strategic options are provided and the recommendations put forward. The strategic options and recommendations provided can be adopted and integrated in Zara business model and all of its operations so as to achieve competitive advantage, strategic positioning in the industry and effectiveness.
The main of globalization process is to enable large-scale companies to take advantage of the services and low-cost products that are readily available in the Asian countries. Despite the fact that the labour costs in Asian countries are cheap, Zara refuses to enter into sub-contracting agreements with other garment manufacturing companies in Asian countries.
Zara Spanish Clothing Company [Name] [Course] [Professor’s name] [Date] Operating in around 1,000 stores in more than 60 countries, Zara Clothing Company is one of the major companies owned by the Inditex firm based in Spain. Inditex is a rapidly growing clothes retailer in Europe.
In the current highly competitive business environment, several firms opt to send out non-core operations to manufacturers or suppliers so that they may focus on the main operations only. Business entities that choose to outsource some of their operations do so with the sole intentions of reducing their costs by specializing.
Zara is a leading fashion retailer store in Spain and most parts of Europe. This company has gained a good standing in the industry by its strategy of fast fashion. The analysis of the external market reveals that the rivalry within the firm is medium to high. This is mainly on account of the fact that the industry is in its maturity stage.
Zara clothing company. The study establishes the business projects and successes of the Zara clothing company based in Spain, which currently owns over 6,000 stores in over 80 countries globally and fashion trend of over 12,000 items annually. The report establishes the macro and micro elements of evaluating progress in Zara and the appropriate steps to measure and ascertain the future outcomes.
The topic on female problems invariably kindles curiosity of the readers and the response to literature in that genre is generally good. The words, woman and discrimination, generally go in tandem, to make a good plot. Turn the pages of history, gender discrimination has always been there, in all cultures, under the governance of all political philosophies and women mostly are at the receiving end.
At present the northern American and the EU nations are looking to comeback from the shock-waves of the economic down-turn. Downward economic trend may have transformed regular clothing purchases into luxury purchases. Major Apparel Companies are looking to establish businesses in the emerging economies.
Given that the distribution management of Zara is being handled by Inditex Group1, the company manages to become the second biggest international fashion companies all over the world (BBC News, 2008; Zara, 2008; Manning-Schaffel, 2004).