Zaras Supply Chain Management Strategy - Essay Example

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As part of examining Zara’s supply chain management strategy, this report will explore the actual production and distribution system of Zara before discussing this company’s ability to align its corporate strategies with its supply chain management system…
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Zaras Supply Chain Management Strategy
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Download file to see previous pages As one of the well-known Spanish clothing company around the world, Zara was able to come up with the clothing design that suites the unique preferences of most modern men, women, the young adults, and children. As of 2010, Zara managed to become the second largest clothing company within the global fashion industry (Zara 2011; BBC News, 2008; Manning-Schaffel, 2004).As one of the well-known Spanish clothing company around the world, Zara was able to come up with the clothing design that suites the unique preferences of most modern men, women, the young adults, and children. As of 2010, Zara managed to become the second largest clothing company within the global fashion industry (Zara 2011; BBC News, 2008; Manning-Schaffel, 2004). Ever since Zara was established by Amancio Ortega Gaona in 1975, this company managed to expand and open up to 2,692 retail store outlets all over 62 different countries around the world. To make the company able to rapidly expand its business in many countries, the management group of Zara decided to hire the services offered by the Inditex Group with its global market distribution.Zara and Its Preferred Target Market Having a strong and powerful brand is even more effective when it comes to developing a special attachment between the clothing company and its target buyers.In line with this, one of the business strategies that Zara is currently using in order to win the attention of its target global markets is to select countries wherein they can effectively promote their brand  as a unique clothing designer and seller that is totally different from what other clothing companies are offering to its target consumers (Neumeier, 2006). By nature, clothing and fashion business offer homogenous products to the end-consumers. For this reason, Zara has been very focused and keen on being able to come up with new clothing designs that are relatively new to the eyes of its target market. Even though Zara is actually selling homogenous clothing products to its target buyers, its ability to produce new fashion and clothing designs faster than what its close competitors like Gap or H&M could offer in the market gives them the edge to sell its clothing items at a premium price. Because of Zara’s ability to establish a strong positive brand within the global fashion industry, this company was able to capture the interests of millions of loyal “fashionistas” who are more than willing to spend more money just to be able to be the first one to wear its latest fashion designs and other related merchandises. This particular edge or business advantage enabled Zara to avoid spending large sum of money on its product advertisements (Aaker 1991). Actual Production and Distribution System of Zara Zara has always been trying to narrow down and make its supply ...Download file to see next pagesRead More
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