Intb200
Homework #1
4/19/15
Zara case study
1. Zara is a unique retailer; the most profitable store that providing us with
a wide range of clothing for young adults, men, women and children. Zara store
belongs to Inditex, the high stock price was made by Amancio Ortega- Spanish
richest man. Zara is very successful and unique company. Zara company is
vertically integrated so this is very unusual with “outsourcing” like Benetton I thing
they doing the same. Reading from Zara case study I can say this company is
global but has a lot of local characteristics.
Structure of Zara Company is relatively similar in different parts of the
world. First, Zara advertising and promoting their products through the store its
have their own benefits for the company because it takes them to low advertising
and logistics when entering a new market. Second, with entering a new
marketing Zara apparel retailing was very witnessing increasing concentration,
which will benefit Zara. Third, the company is trying to follow the fashion instead
being a leader. Most of the companies trying to be leaders but Zara Company is
a very unique and different. They are very successful in fashion and their main
advantage is a quick response. These components have many concepts
important feedback and they people think. If you a quick response company you
have to respond really quickly to changes, otherwise you going to fail.
Logistic center is one major center in Spain when you have one main
location because it’s easier and faster to manage your inventory. Zara is very
quick fashion follower. They are react quick to the designer changes for example
if some company came up with a pair of shoes and Zara think its going to be
successful they can quickly copied, not like totally copied but they will look at the
trend, color, their cut. Copied only general fashion trend. Zara trying to avoid like
marketing and manufacturing, they are not working together. Designers need to
be aware of limitations. Zara focus a lot in their customers, what they need, buy,
quick response, feedback. Manufacturing does not depend on a market. So Zara
is a marketing driven not manufacturing. It makes them less efficient because
they making small, quality production and it cost them more. They are producing
what customers want. For company like Zara its better to have a plan, be flexible,
