Zara Competition Essay

1007 WordsJul 24, 20145 Pages
It is important to have a competitive edge over your competitors in any business no matter what your industry is. So is in the retail fashion industry. Zara (Inditex) as the leading retail fashion network in the globe competes against H&M and Gap who follow them. Each of these retailers has its own competitive strategy to compete against each other in the competitive global market. And also to have an edge against the others who are following them such as M&S, Uniqlo and etc. Zara has a strong competitive strategy which no other competitor is trying to cope with or rather trying to match with Zara. Zara’s business is mainly focused on a strong operational level effectiveness in which they have been able to minimize the time to market factor for their new designs. Time is a very important factor in doing business in today’s competitive market for any business organization. Zara has obtained the reputation for developing a new product within four to five weeks while modifications on any existing product are done within two to three weeks. Zara has got the edge in the business since 50% of their items are being produced in Spain and they are able to finish off the designing and the manufacturing as soon as they want to get it done. The cycle of Zara’s products start from customer and ends up with the customer. The company collects all the needed data from the customers to understand what the customer needs and wants are and all their new product innovations are done according to the details they collect from the customers at the point of sales through their store managers. The designers of Zara are said to be imitators rather than innovators since they tend to imitate fashion and designs rather than innovating new fashion items predetermined for particular seasons. Every store receives a new stock of clothes every two weeks and each of those stocks contains new

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