Success Factor for Zara - 1108 Words

What are the Key success factors of Zara? â€Å"The ability to respond to customer requirements on a timely basis has always been a fundamental element of the marketing concept.† Martin Christopher et.al. Hence, it is important being proactive in a market such as the fast-fashion industry which Zara is operating in, time is always a crucial factor. The fast-fashion market, amongst other things, is characterized by short lifecycles, high volatility, low predictability, and high-impulse purchases. Therefore, it is very important for Zara to constantly have their products available for a potential customer in order to sell and earn more profit. Since the fast-fashion market is also constantly shifting and trends can be replaced over a night,†¦show more content†¦By having products for a reasonable price with relatively high quality, Zara is one of the leading fast-fashion companies in the world. But, how does their company function to have this much success? One of the main reasons why Zara is so competitive is because they have suppliers that are strategically designed to fulfill their conceptual idea. Their conceptual idea is to supply trendy clothes, to a broad market, for a reasonable price. Almost 30 percent of the company`s suppliers are situated in either Spain or parts of Europe. The local presence of the manufacturing facilities within a short distance to many of their stores and headquarters, has allowed the company to be very flexible in a changing market. With high integration to the company ´s suppliers, the products that are highly sensitive to availability and proactive response are mainly produced in Europe. They minimize costs and lead-time because of the local presence, which makes it possible to introduce new and fresh merchandise multiple times a year. Since, major parts of the production are situated locally, the products can reach the stores at the right time, meet the actual demand, and reach a higher sell-throug h. The other part of their product line that is not susceptible for seasonal changeShow MoreRelatedZara International Case Study1000 Words   |  4 PagesZara International was a retail shop originated in La Coruna, Spain in 1975. It was clothing and accessories shop and imitated the latest fashion trends and sold them at a lower cost. It became Zara International after entering Portugal in 1988 and then the United States and France in the 1990s. The distributor for this brand is Inditex and is considered the most successful retail chain in the world. Zara has a business strategy that is very different from the retailers nowadays. If a customer ordersRead MoreThe Retail Giant Of Zara Essay1351 Words   |  6 PagesThe retail giant Zara have proven that utilizing all resources and different management techniques branded the store as a fashion empire. However, Zara has been named one of the most profitable retailers in the world. 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The retail giant uses a rapid responseRead MoreZara Corporate Strategy1203 Words   |  5 PagesCorporate Strategy – Zara The  core concept of Zara s business model is they sell medium quality fashion clothing at affordable prices, and vertical integration and quick-response is key to Zara s business model.   Through the  entire process  of Zara s business system: designing, sourcing and manufacturing, distribution and retailing, they presented four  fundamental  success factors: short cycle time, small batches per product, extensive variety of product every season and heavy investment inRead MoreCase Study : Marketing Brand Management Essay1398 Words   |  6 Pagesorganization Introduction of Brand: Zara is one of the most famous brands in the world, is also one of the largest international fashion companies. They is the third largest brands in the garment industry. Zara is a Spanish clothing brand. Zara is part of the Inditex group of Spanish fashion distributors. 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Information Technology is the core of Zara’s business model. Zara currently uses the point of sale (POS) as one of the infrastructure based upon DOS which Zara is the only customer. DOS system is simple, user-friendly and it gives no problem at all. It allows Zara to have a responsive and integrated supply chain to gather information from the market in order to allow them to make quick decision, production and delivery of product. As Zara aims for fastRead MoreZara Internationalization Analysis1099 Words   |  5 PagesZARA-Internationalization Analysis When it comes to internationalization strategies, ZARA is the perfect case to look at. By putting in practice a set of different strategies, ZARA has accomplished great positioning worldwide and is one of the most recognized brands in the apparel market. Listed below are the main internationalization strategies ZARA has used to become one of the leading clothing brands in the world. Operating Filial When ZARA first started opening stores outside of Spain