Compare Zara and Primarks operations - Essay Example

The company is a subsidiary company of the Associated British foods Company. Primark is in the business of selling readymade garments including women’s wear, children wear and menswear of stylish fashion and high variety at accessible and affordable prices. The company mainly operates in the market of the United Kingdom with its stores in different European countries like London, Portugal, Spain, Belgium, German, and Holland etc. The company has more than 150 stores located in different parts of the United Kingdom.

The main competitors of Primark are Next, River Island, Guess, Gap, and Zara. The competition between these companies is based on achieving competitive advantage through the use of different business models and unique operational strategies. The report encompasses a study of the business models followed by Zara and Primark with an identification of the key similarities and differences in the two business models and a study of the key business objectives of these two companies and their impact on the competitive advantage creation for both the companies.

 The report also includes a tradeoff analysis of the two companies on the basis of key operation factors like cost, quality etc. The report is suitably concluded with the recommendations given to the companies for achieving sustainable competitive advantage. The owner of Inditex, Amancio Ortega Gaona has been renowned for adapting innovative business models in all his fashion brands. The business model adopted in Zara is unique and one of a kind. The business model followed by Zara is a popular fast fashion retail model.

On the other hand, the business model of Primark is aimed at providing low cost products to the consumers. The business model implemented by Primark is a ‘no whistles no bells’ business model in which redundant services are done away with to make the supply chain more efficient and to incur low operating