Zara Case Study Answers

The information from the local centers will be sent to the Spain headquarters, in this way; the "design-on-demand" model will be more adapted to the various country specificities. An optimal solution can be the combination between cost leadership and local responsiveness. Conclusion Zara is one of the biggest retailers in the fashion industry. ABSTRACT Background The brand name of Zara is strong in the market and the company has a strong new product pipeline which presents more than 10000 new designs every year that amounts to approximately 30 new designs a day.

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Research Methodology This study is conducted using the survey methodology with a simple five point Likert-scale based questionnaire to gauge customer responses about the brand, its quality, pricing and promotion. Another brief survey of 20 employees involved in three different functions in the Zara store was also conducted to reinforce the customer survey findings.

The responses are tabulated and descriptive statistics generated to analyse the responses.

Thus, Zara always keeps an eye on the pulse of fashion, one of the first reacting to new trends and customer wishes.

Buyers are looking forward to the days of new supplies to stores.

If Zara wants to continue the expansion on other continents where they don't beneficiate of brand awareness it will be really difficult to be successful without an advertising campaign ?

The Vertical Integration which is a distinctive feature of Zara's business model start to become more and more difficult to handle as long as the distance from the headquarters is getting bigger. E the customs will disappear and also the liberalization of markets (e.g.They in a very short time create a design of inexpensive clothing based on the latest trends of high fashion.Such a system allows the company to quickly update the entire range of stores, quickly remove unpopular models from production and refine the design in conformity with consumers’ requests.The creation of these two distributions centers it will be a test for Zara, it will be like a duplication of its business model and also a big signal of alarm towards the competitors but it also be a failure if it isn't well managed.I would like also to consolidate the transnational strategy by adding two more elements: a management team that will be in charge with the coordination of all activities regarding the development of the two distributions centers and a council will be added also in order to supervise and improve the communication between the product divisions and the distributions centers (Exhibit 1). Its business model is unique: Zara gathers the information from the customers and then respond in a fast manner to their demands. As long as Zara is keeping its philosophy and make some modifications regarding its strategy in order to face the futures challenges it will be impossible to assist to the disappearance of this retailer in the near future. A case study of Zara can show that the history of the world brand began, as it often happens, from the desire of one poor person, gifted with will power, patience, organizational skills, to get ahead and offer the world something new.Zara revolutionized the fashion world and the textile industry, giving birth to the very notion of “instant fashion.” Zara case study solution allows analyzing the uniqueness of this business-scheme. By the accomplishment of the two objectives Zara is looking to create enduring profitable growth. Introduction In my short study case I will start by illustrating Zara's present situation (according to the case), then I will continue with a brief analysis of the internal and external environments; in the next step I will develop some alternative ways of action and I will end by presenting my recommendations regarding the adaptation of the Zara's business model in order to successfully face the future economic context. A second objective is to continue their stores' growth in the countries where already exists in order to consolidate its position and increase its market share.


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