Zara Case Essay

Competition Strategy

ZARA-case

1 . a:

Strengths

-Internalized cross-border functions,

-Affordable rates

-Quick response

-Strong real-estate network

-Wider vertical scope than rivals, owned much of its production and most of its stores. -Galica's physical position through the prespective of transport costs -Originated style and completed goods in stores within 4 - 5 weeks regarding entirely new designs and two weeks for modifications of existing products. -Just-in-time system, lower factory and inventorie costs

-Positive " expression of mouth” advertising

-The stores were typically situated in higly noticeable locations -Low leasing cost

-Designer-style garments and add-ons with extensive, rapidly changing product lines; comparatively high vogue content; and reasonable but not excessive physical quality. -Zara placed even more emphasis on using backward top to bottom integration to become very quick fashion follower than to achieve making efficiencis because they build up significant forward purchase books for the upstream operations.

Weak points

-Lacked Italy's fully designed thread-to-apparel straight chain (including machinery suppliers), its prominence of high quality materials (such while wool suiting), and its intercontinental fashion photo. -Centralized logistics model may ultimatey be subject to diseconomies of scale. -Little advertsing would not create as well strong prefence for the Zara brand Opportunities

-Cross-border homogeneity popular

-The advantage of outsourcing due to the labor intensive characteristic, to lower cost -Proximity matter due to its effect of reducing shipping costs and lags, -MFA (Multi-Fiber Arrangement) avoided marketplace from imitation products -The increased focus of apparel retailing in major marketplaces -Quick act in response had led to significant compression of circuit times, allowed by improvements in information technology and encourged by shorter fashion cycles and further markdowns, specifically women's...



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