Zara expand its business through out different other countries and regions after its great success in Spain and other European countries .Currently there are over 1100 store in 68 countries and same trend and approach is applied ina all stores of country or region (Global logistics and supply chain Strategies).Zara focuses on customer preferences and tastes in a distinctive way by providing short lead and quick turnaround times in all designs in a base of unique marketing approach. Zara has established an initiative called “fast fashion” base upon the clients desires and provide them in a large in a selective designs on a daily basis.These principles or startegies allow Zara to differentiate in sustaining acompetitive Advantage with other competitors .
Success of the Zara
Every company success depends upon the strong business model.Zara has become successful as of the unique business model. Zara has developed a strategic and unique supply chain management process that has put it ahead of its competitor over the years . Its emphasis is on ‘permanent innovation and low prices’ (Chukwuma, n.d.) Zara give more priority to their consumer and put them at the heart of the company in relation to their design,production ,distribution and sales (Dishman, 2012).Zara business model another important factors is speed at which they can get newest and latest fashion into the market. Usually the shipping system of the Zara is frequent .A store receive two separate deliveries in same week which results each store having few but a selective choice of the items that enables customer give a new and difference experience each time once they visit a store .Zara manage to receive their shipments in just 2-2.5 months while other competitors receive shipment usually 5-7 months after the order has been placed (Andrew Pearson, 2011).Other things that contribute to the success and uniqueness of Zara business model are :
Advertisement as zara only spent 0.3% sales profits on it ( (Andrew Pearson, 2011)
Sourcing more than half around 60% from its home country Spain and neighbouring Portugal and Morocco
Young innovative team are design collection not a group of designers
Clothes are cheaper in comparatively with competitors but in good quality
Good communication in regards of informing head office from retail managers of consumers buying preferences
Zara implements a Verical Maketing System which integrates stages of production and distribution under single ownership .It adopts a new line from designing and ending by worldwide distribution in less than a month (Kotler, n.d.). Zara brand image is globally considered as a luxuary fashion band in which adds an extra value when buying a product from this Symbolic retailer . (Sandra Streukens, 2011)
Competitive Advantage
Zara become the leading global clothing retailer as of its resources and capabilities .It gain significant advantage over its competitors .Zara competitive advantage is its flexible and responsive supply chain. It includes its “fast fashion “business style, unique customer oriented stores and different management style. This ‘fast fashion’ system depends on a constant exchange and supply of information in every part of Zara's supply chain. It starts from customers to store managers, store managers to market specialists and designers, designers to production staff, buyers to subcontractors, warehouse managers to