Zara Case Study Solution

Zara is a popular and well-known clothing company. The reason for its success is its innovative strategies. The environment provided by the company for its employees allows them to work collaboratively with all employees involved in the process with peace of mind, motivating them to come up with the perfect designs. The work environment the study describes is ideal. The designers and store specialists work in the same room in a large setting and are constantly in touch with the store managers regarding the sales and market response. The ability to respond to market changes quickly is what gives Zara and advantage over other market apparel brands. They have a unique strategy for Supply Chain. First, the timeframe for response to market demands is very fast. Second, they constantly work on how much sourcing should come from external suppliers and from in-house, involving procurement, assembly and finishing, trying to come up with best combination possible by taking into account the external factors of quality, time, cost and expertise. Zara’s constant customer and sales feedback through store managers is also a competitive strategy.

For companies like Zara, the quality of the products should be the utmost priority to maintain …show more content…
As the study suggests, goods must be transshipped through Hong Kong in order to avoid the quotas on products from China. Similarly, Zara should not outsource to China as it may in the long-term prove to have negative repercussions. Outsourcing to China may have a negative impact on the supply chain performance of our company as diverting the shipping routes, for example in this case through Hong Kong, may in turn increase the transportation costs and lead times, ultimately hurting our strategy of quick responsiveness and adding increase to our costs. Possibly in the future, the policy of quota becomes stricter or tariffs are increased, the company will suffer much greater