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Examine The Success Of Zara

Executive Summary

This report aims at trying to distinguish between order winning & order qualifying criteria of Zara product or service, from Operational point of view, which helped Zara to support it’s product or service in an increasing competitive and core competent environment of fashion & clothing industry. Supply chain management, various designs, ability to collect cash quickly, and a word of mouth are few of the important aspects of strategic operation capabilities Zara developed. Since, Bershka and Zara has a different market segment target, and so formulating strategies for both of these entities as one, might effect the operations of the company in the Inditex group as a whole, as customer has already accepted the label and brand of both of the organization in a group – which seems to be integrated perfectly within group.

1. Introduction

In the last thirty years fashion has changed from an elite accessory of the super rich to a mass market product. Since the mid nineties, the departmental stores that traditionally dominated this broader market, have started to loose ground to specialist clothing chain offering the latest design at competitive price.

Founded thirty nine years ago, Europe’s fastest-growing apparel retailer, the Industria de Diseno Textil (Inditex)a sells on a global scale, with nearly 3,164 stores in 63 countries under eight banners- Zara, Oysho, Massimo Dutti, Pull and Bear, Bershka, Stvradivarious, Zara home and Kiddy’s Class. (INDITEX homepage/Zara)



2. Background and business

Zara was the largest division of Inditex and follow a strategy of cutting edge fashion at affordable prices that resulted in 76 % retail sales. Zara owned and operated almost its entire store network, except few places such as Japan, where local laws does not allows full ownership of retail estate. Zara always try to locate its store in most upmarket, high prestigious and location it could find, even though it is very expensive....