StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Zara Questions - Case Study Example

Cite this document
Summary
The business system of Zara starts from designing of products, followed by sourcing and manufacturing, distribution, marketing, personnel management, and financial results. In that direction, Zara designs and manufactures its most fashion-sensitive and successful products…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.2% of users find it useful
Zara Questions
Read Text Preview

Extract of sample "Zara Questions"

1. The business system of Zara starts from designing of products, followed by sourcing and manufacturing, distribution, marketing, personnel management, and financial results. In that direction, Zara designs and manufactures its most fashion-sensitive and successful products internally. The business system starts with the Zara’s designers who continuously track preferences of the customers and changing trends in the market thereby coming up with effective designs. These designs are manufactured into final products by both internal and external suppliers.

Then, both internal as well as external production flowed into Zara’s central distribution center. From there, the products were shipped to strategically located and attractive stores twice a week, which in a way eliminates the need for warehouses. This way Zara is able to design and reach the finished goods in stores within 4 to 5 weeks, and just 2 weeks for the restocking of existing products.2. The major competitors of Zara as described in the case study are The Gap, Hennes & Mauritz, and Benetton.

The Gap is the U.S. based retailer of casual clothes particularly selling T-shirts and jeans. Its store operations are mainly U.S. centric but its production is internationalized, with 90 percent of their finished products being outsourced from outside the U.S. Hennes and Mauritz is the Sweden based retailer of casual clothes and is regarded as the closest competitor to Zara. H&M has strongly internationalized its operations because of which it generates more than half of its sales from foreign stores.

Benetton is the Italy based retailer who mainly manufactured and sold brightly colored knitwear. It outsourced most of its production to subcontractors. The competitors who are not described in the case study include Uniqlo and Primark. Uniqlo is the Japanese retailer of casual wears. It manufactures its products in-house and also sources from its supply units in China and Thailand. Primark is an international food and cloth retailing group, with stores in a number of European countries. It sources its finished products from India, Bangladesh, and others. 3. The major strength of Zara is that it has a broader and optimal vertical scope when compared with its competitors.

That is, while Zara owns and operates its production as well as its stores, its competitors due to their narrower vertical scope maximally outsourced their production and even licensed their stores. For example, both The Gap and H&M have outsourced all of their production to Asian countries although they operate their stores. In the case of Benetton, although they invested heavily in production, licensees mainly run its stores. As far as Uniqlo is concerned, being an emerging player, it does not pose major competitive threat to Zara.

Primark on the other hand is strongly competing with Zara in Zara’s home-turf of Spain, where it has overtaken the latter as the biggest clothing retailer through its low-cost products (Mitchell, 2014). Although Zara’s products are criticized as pricey, there are no major weaknesses in its business system. 4. Locating stores at strategic and optimal locations forms a key part of retailer’s strategy as well as retail map. In that direction, Zara is locating or opening sophisticated stores in prime and well-known locations, particularly at premier shopping streets.

As Zara follows zero-advertising strategy, it locates and elevates its stores so that those stores can function as its advertising tool. Zara wants its stores to function as the company’s face to the world and is customers. When one focuses on Zara’s performance for the past few years, it appears to be on the positive track. It was able to strongly compete with its rivals and even overtake them in many markets. Although, its revenue dropped marginally in 2014, on the contrary, its sales volume has increased (Mitchell, 2014).

So, its performance is good with potential for further growth.ReferenceMitchell, C. (2014, September 1). Competitors try to topple richest retailer Zara. Retrieved from:http://www.retailgazette.co.uk/articles/44143-competitors-try-to-topple-richest-retailer-zara

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Zara Questions Case Study Example | Topics and Well Written Essays - 500 words”, n.d.)
Zara Questions Case Study Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/marketing/1666562-zara-questions
(Zara Questions Case Study Example | Topics and Well Written Essays - 500 Words)
Zara Questions Case Study Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/marketing/1666562-zara-questions.
“Zara Questions Case Study Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/marketing/1666562-zara-questions.
  • Cited: 0 times

CHECK THESE SAMPLES OF Zara Questions

Managerial Foundations of Zara Group

This paper under the headline "Managerial Foundations of zara Group" focuses on the fact that zara is a clothing chain store that is an indispensable part of the Inditex Group.... nbsp;  zara is a flagship chain store owned by Inditex Group that owns other brands such as Pull and Bear, Bershka and Stradivarius.... The first zara store was opened in 1975 and featured low priced high-end products that were mainly sold to women, children, and men (zara 2012)....
7 Pages (1750 words) Essay

Zara: Brand of Inditex Group

zara is one of the leading and most popular Spanish clothing and the accessories retailers.... … zara is one of the leading and most popular Spanish clothing and the accessories retailers.... Among all of the owned brands, zara is considered as one of the most popular and accepted brand among the people around the globe.... zara has a strong global presence.... zara is known as a vertically integrated retailer....
6 Pages (1500 words) Essay

Spanish. Critical analisis of the readings: Bolivar, Marti & Hostos

El presente trabajo constituye un análisis inicial y un estudio comparativo de tres textos concretos: Carta de Jamaica (1815), de Simón Bolívar; Ayacucho (1870) de Eugenio María Hostos y Nuestra América (1891) de José Martí.... Así pues, la unidad de Latinoamérica… e un nexo de unión para las lecturas que sirven de referencia a la elaboración de este ensayo, hasta el punto de trazar un camino común entre las tres obras....
5 Pages (1250 words) Essay

Analysis of Charles Schwab and Zara

Still, the organization was faced with further questions of whether to expand deeper into Internet trading.... This paper presents the case study analysis of Charles Schwab and zara.... While Charles Schwab Company made efforts to rapidly embrace technology and finds means of confirming their business philosophy to it, zara has steadfastly clung to antiquated systems.... The case studies of Charles Schwab and zara demonstrate two conflicting ways organizations have dealt with these changing technological demands....
8 Pages (2000 words) Assignment

Discuss Question

The brand has a mobile application which is called zara, this is a mobile marketing application that supports the Ios operating system used by the MAC I pads and I phones.... The brand is a mobile application that deals with the advertisement and marketing of zara's textile… The mobile application can be installed on I pad and I phones which runs on the Ios operating system.... The application is capable of connecting to the internet and connects to the shop where one can do a window shopping on the textile industry. Despite the Discussion question School zara mobile app The brand has a mobile application which is called zara, this is a mobile marketing application that supports the Ios operating system used by the MAC I pads and I phones....
2 Pages (500 words) Assignment

Analysis of Zara Customer Service Facilities

A sample population of 100 customers having shopping experience with Zara have been interviewed by distributing a structured questionnaire containing 5 close ended questions.... The questions have been framed with the objective of understanding customer perceptions about customer service facilities provided by Zara.... There are several players operating internationally, such as Asos, zara, Benetton, Marks & Spencers and H&M.... In this paper the researcher presents a study made on the famous fashion brand zara....
13 Pages (3250 words) Essay

Fashion marketing Prada and Zara

The essay analyzes the fashion marketing of Prada and zara.... hellip; This essay discovers the Prada and zara fashion marketing.... The paper "Fashion marketing Prada and zara" analyzes the fashion brand of Prada and zara and its marketing.... zara is a brand of fashion under the Inditex Group.... zara and Prada have major differences in operation and organizations, which individually lead to their success....
8 Pages (2000 words) Essay

Zara and information system technology

In that regard, several questions are abounding as to its survival tactics.... The author of this essay entitled "zara and information system technology" focuses on the role of IT in business.... According to the text, the increasing competition in clothing and Apparel industry has not shaken zara so much.... It is worth to note that the customer base of zara is significantly large and dominates the better parts of North America, Europe, Asia....
1 Pages (250 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us