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Zara - unique business model. Q 1.: What is unique about Zara’s business
model? Zara has proved to be a maverick of its time – it ...
... Zara is unique model in business world today it has its own principles which may
varies from its competitors in the same industry starting from production ...
... income elevated, has a strong and unique business model, and has various opportunities
for expansion in the retail industry. To many Europeans, Zara is a ...
zara. Q 1. What are the unique features of Zara’s business model ? Zara is
one of the six retailing chains owned by Inditex (Industria ...
... Zara has it own unique business model that enabled Zara to be compete with its
competitors, and it’s driven by Zara’s “fast fashion” with its ...
Submitted by greys anatomy on January 12, 2007
Category: Business
Words: 2046 | Pages: 9
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Q 1.: What is unique about Zara’s business model?
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Zara has proved to be a maverick of its time – it came at a time that the apparel industry was fragmented there was no integration, the costs incurred were enormous it was highly labor-intensive leading to outsourcing to save on costs and the business model prevalent was not proving to be highly successful as compared to the models of other industries. In came Zara and showed that strategic imperatives depended on how a retailer sought to create and sustain competitive advantage through its cross border activities and seamless operations, the power of integration and the importance of sticking to your positioning without adding too many frills. Zara’s factories were heavily automated, specialized by garment type and focused on the capital-intensive parts of the production process.
Zara’s fantastically integrated supply chain has enabled them to deliver on their positioning and promise to offer affordable, trendy clothes to its fashion conscious target market in quick time. With Zara you don’t have to be a millionaire to look like a million dollars.
Zara’s global strategy is to offer cutting edge fashion at affordable prices by identifying which styles are “hot” at fashion shows and moving simulations into production even before the original designer can. This is made possible by exerting a strong influence over almost the entire garment supply chain from design to retail. Product differentiation, variation in styles and speed to market has been the main sources of competitive advantage for Zara.
Segment
Zara offers clothes, footwear and accessories to women (60%) and men (25%), as well as clothing and accessories for children (15%). People at Zara do not define their target by segmenting ages and lifestyles as traditional retailers do. Zara’s global target market is a young, educated one that likes fashion and is sensitive to fashion, but is price-conscious.
Target
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