Case Study Zara Fashion

1201 Words 5 Pages
1. Zara Fashion 's business and corporate strategy showcases strategic management through Zara 's use of cost leadership and differentiation in its strategy. Unlike other companies, Zara stands out from its competitor because they offer fast service and a variety of products for consumers, providing them with a unique and satisfactory experience not offer by Zara 's competitors. Zara 's ability to have a design made available in store within a two week time period illustrates that every action and decision made by the managers and employees at Zara has a distinct purpose. Had Zara not have an amazing strategic management system in place, it would not be possible for them to restock their stores twice a week with new clothing designs. Zara 's …show more content…
Furthermore, Zara made use of modern resources like technology and machinery to product its product more rapidly. While the products are made in mass production, Zara 's ability to constantly restock their shelfs enables consumer to feel as though the clothes that 's eye bought were unique and cannot be found elsewhere. Zara showcases strategic management because they took the best attributes of a cost leadership strategy and a differentiation strategy in order to create a system that would enable them to produce unique low cost products in a time efficient …show more content…
Zara 's success come from both external and internal factors. Being able to obtain materials for its products without having to use the services of outside resources has enabled Zara to implement its mission and vision statements providing "fast fashion". Internal factors such as having resources like in-house clothing designers helps Zara to become indecent from external problems that come with having to work with outside contractors to product their products. Furthermore, Zara also possesses intangible internal resources like effective and efficient employees, who possesses the necessary skills needed to work and operate the managements stem that Zara implements. Without capable managers and employees, Zara would not be able to create, product, and transport its products in a timely manner. Furthermore, Zara 's decision to cater to Europeans also serves as a factor that influences Zara 's success. No matter how well a company runs internally, external factors such as the buyers and industry competitors will play a key role in the success of a company. If Zara 's competitors can also provide the same services as Zara, Zara would no longer have a competitive advantage in the fashion industry and its profit would suffer as a result. Similarly, Zara 's success comes from its ability to satisfy its customers by providing the products that the consumers’ desire. This, Zara must take into account external factors like the buyers ' power and the threats of potential and

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