Research on Zara Paper Example | Topics and Well Written Essays - 500 words

On Zara - Research Paper Example Not a single reason for the cause, several reasons account for Zara’s popularity and its standard along with world wide recognition. Obviously the very first fact is its vertical integration, with operations including design, textile manufacturing, and dying, permits the company to respond extremely quickly to market conditions and fashion trends. This makes Zara, a flagship chain store of Inditex, a fast fashion for youth. Another remarkable difference is that unlike other international clothing chains, Zara makes more than half of its clothes in-house, rather than relying on a network of slow-moving and disparate suppliers. This type of innovation management renders swiftness and efficacy throughout its operations and consequently Zara can make a new line from start to finish in three weeks, against an industry average of nine months (Zara International Inc). Another key factor for Zara’s success is its strategic management, it does not spend money on advertisements; instead they spend money on anything that would enforce speed and responsiveness of the business chain. They invest heavily in production and distribution facilities to fluctuating demand. Furthermore, instead of more quantities per style, Zara produces more styles roughly 12,000 a year. Thus even if a style sells out very quickly there are new styles already waiting to take up the space. Fresh produce, moving in step with fashion trend and updated frequently the ingredients are just right to create the sweet smell of success. Moreover, the effectiveness in ownership and control of production is the one in list of success causes. Most other competitors like GAP and H&M, completely outsource their production to factories around the world, many of them in low cost Asian countries. In contrast, it is estimated that 80 percent of Zara’s production is carried out in Europe that is, in owned or