Zara Case Harvard University Press

In: Business and Management

Submitted By leylayashar
Words 463
Pages 2
1. Strategy and Planning: their product, their business strategy, their planning process, their competitive advantage, do they fit together?

Zara is a Spanish clothing and accessories retailer. Zara belongs to Inditex’s apparel retailer; the fashion group simultaneously owns brands, such as Massimo Dutti, Pull&Bear, Stradivarious, Bershka and Uterque, which operated 507 stores in many countries in 2001.

Product

Zara stores have men's clothing and women's clothing, as well as children's clothing (Zara Kids). Designers of the brand work on two basic collections each year that are phased in through the fall/winter and spring/summer seasons. Zara offers fashionable clothes at very competitive prices and reasonable quality. Customers choose products of Zara because they pay less for good, stylish products with good quality.

Business strategy

As I understood, managers of the company focus on cost leadership strategy. Zara is a vertically integrated retailer and controls most of the steps on the supply-chain, designing, manufacturing, and distributing its products. It has succeeded on account of minimizing its variable and fixed costs, its ability to capture the latest catwalk trends and quick reaction to changes in market demand. According to the case Zara made investment in manufacturing logistics and IT, including a just-in-time (JIT) system. Every two weeks Zara provides its stores with new products. The company follows zero advertising strategy. Mostly Zara invests in opening new stores instead of advertisement. Zara can reduce its expenses by running on a minimum stock JIT basis. Zara uses a focused cost leadership strategy and a fashion imitator strategy by selling low-priced fashion clothes and accessories.

Planning process

Zara’s success is its speed at turning out designs inspired by the catwalks and clients demands. Unlike its…...

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