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Famous Spanish Company Zara: Review

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Zara is a Spanish company that makes and sells ready to wear garments. Its business model enables Zara to open quality stores in fast stores and with suitable funds. For example, Zara claims that it only needs two weeks to design and develop a new product and put it on the shelf, while the industry standard with an average development cycle of nine months is totally incomparable. Zara issues more than 10000 new clothes every year. Zara resists a trend in the world's industry to shift its product manufacturing to low-cost areas. Perhaps Zara's unique marketing strategy is not to advertise. The company tends to invest in capital and open another branch. Zara marketing logistics model can offset the labor cost

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Zara is called the most innovative and powerful retailer in the world by Louis vuitton fashion master Daniel piette. CNN described Zara as 'the success story of Spain.'. Zara has 1238 stores in 75 countries on five continents. According to the data, the area of each branch is 1500 square meters. In addition, SA la 's branches are concentrated in places with high flow of people and high consumption.

Zara company, founded in 1975 in La Coruna, Spain, is a subsidiary of INDITEX group. INDITEX group has now surpassed the gap in the United States and H & M in Sweden, becoming the first clothing retail group in the world. Zara has 27000 employees and an annual sales volume of 90 million pieces of clothing. It has more than 2000 sales stores around the world, of which the proprietary stores account for more than 90%. As the originator of 'fast fashion', Zara's expansion in the mainland of China is obviously also a model for other brands to learn from. Zara has entered 53 cities in mainland China and more than 200 stores in just a few years since it entered China in 2006.

Zara is able to produce and sell clothing products quickly in less than two weeks. So Zara is firmly at the top of the fast fashion industry. His marketing mode is very unique, which can be regarded as 'copy king'. In strategy, he adopted a fast, agile, multi category, small-scale and large-scale terminal competitive strategy.

Zara restructured its information system for $30 million. Through acquisition, 1200 production enterprises are transformed into their own strategic alliance. A huge team of 480 designers has been recruited. In fact, these designers should be called 'copywriters'. At the same time, Zara has established a complete fashion intelligence station in Paris, Milan, New York and other fashion publishing places. Through such a strategic deployment, the most fashionable fashion styles in any part of the world can be designed, produced and marketed as soon as possible in a week, and all similar products can be removed from the shelves within five days after competitors launch the same style. This ensures that Zara will always drink 'first soup' and lead the fashion trend. Now, the company has broken the situation of other enterprise designers leading enterprises in the future, occupying 35% of the market share of middle and high-end enterprises, and ranks among the top 100 famous brands in the world.

Successful companies always try to keep other parties in the supply chain in line with their own interests, because each company wants to maximize its own interests. If any company has different interests with other companies, their actions will affect the optimization of the whole supply chain operation. Even if the partners in the supply chain are different departments in the same company, if there are different interests, it will also lead to bad results. Zara adopts the 'three in one' mode. The designer is responsible for the design, and works with the market experts to improve the scheme. 

Finally, the 'three' submit the production requirements to the production department together, reducing the lead time, which is conducive to the purchase department to arrange the production as early as possible, and the logistics department can also send the goods to the destination in time. The first mock exam is to provide all members of the supply chain with all kinds of information forecasts, sales data and work plans. Secondly, we should clearly define the role and responsibility of each individual in the 'three', so as to perform their respective duties and avoid conflicts between them. Furthermore, through information technology, fashion design and production processes are compressed and supply chain collaboration processes are highly integrated. 

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