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Zara Case Study Analysis

Marketing students across the world study Zara case study analysis in their universities as part of their curriculum and is an integral part of their assessments.

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Introduction to Zara

Zara is a reputed fashion brand incepted out of Spain almost seven decades ago with the name "Inditex”. Zara was founded by a Spanish gentleman called Amancio Ortega as a small cloth-making factory at the start, but Ortega’s vision in fashion business led him to the path of glory.

Amancio Ortega partnered up with another lady, Rosalia Mera, to start their first store, Zorba, in Galicia, a small town in Spain, in 1975. Down the line, Zorba got renamed Zara, and the brand gradually expanded all over the globe. Currently, Zara has over 6500 stores in over 80 leading European countries like France, Italy, Greece, Belgium, Sweden, etc. Outside of Europe, Zara has multiple stores in other countries like Japan, South Korea, Indonesia, Singapore, South Africa, Australia, India, etc. They are also expanded virtually and increased their online presence over the last decade.

Our case study experts at MyAssignmenthelp.com are well-versed with the whole history of Zara. So, if you need any kind of help with Zara case study analysis, contact us immediately. If you are looking for any Zara case study solution, trust us to deliver it right to you.

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Why does Zara have a better fashion business model?

Zara's case study analysis shows that Zara has become successful because of its superior business model. Read along to know the factors that make their business model so successful.

• Vertical Integration

Zara’s business model stands out from the rest of the fashion brands because of its vertical integration. Zara can design, produce, distribute, manage, ship, promote and handle the sales on its own. Being self-sufficient and implementing vertical integration helps Zara to have full control over its every aspect and maintain better communication among all departments.

• Control over design and manufacturing

Zara keeps its design and manufacturing verticals close to the management centres. That way, they can contact and control both these departments easily and effectively.

• Swift product replacement cycle

Zara doesn’t use cheap Asian labour to make their clothes. Their production is based out of Europe, which is also their biggest market. So, they can continue changing their designs according to the latest trends quickly. The highly efficient product replacement strategy of Zara was innovative and yielded unparalleled success.

• Minimal advertisement

Unlike most brands, Zara is a brand that does not rely on ads. This unique strategy solidifies its position as a luxury brand, which is authentic and unique. They only use their retail bags to showcase their logo, and the rest you can find only in the in-store catalogues.

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Zara’s Situational, Environmental, and Internal analysis

Situational Analysis

• Speed and flexibility of the production process
• Continuous supply of new stock.
• Inventory is initially limited, and stock is increased depending on demand.
• Customers' preferences drive their stock.
• Rapid inventory cycles motivate customers to purchase immediately, as they reshuffle their stocks frequently, and you won't find the same clothes again.
• Inexpensive product offerings lead to impulse buying by consumers.
• Zara does not set their own trends but follows trends set by other luxury brands.
• Generally, they target middle-income individuals.
• Product offerings include basic items, fashion-basic items, and fashion items.

Environmental Analysis

• Fast fashion is associated with a disposable culture and has received a lot of scrutiny about its social responsibility.
• Zara's parent concern Inditex has published a sustainability pledge publicly to show its concern for environmental matters.
• Zara has used its website to share its “commitment” to climate change, water, energy, biodiversity, animal welfare, sustainable materials, and other environmental and ethical issues in detail.

Internal Analysis

• Zara has over 16,000 employees worldwide. The company decided to create an environment where they can focus on honing their talents, be critical thinkers, work hard, voice their opinions, and constantly looking to learn new things.
• Zara has a Code of Conduct for all its manufacturers and suppliers that force them to comply with relevant labour laws. This ensures the safety of their products and the environment and helps them trace all their raw materials.

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What is the present objective and mission of Zara?

You can take Zara case study help from our Zara case study analysis experts to know about their objectives and missions.

Zara’s present objectives are:

• Increase customer equity
• Increase consumer satisfaction
• Decrease dissatisfaction of plus-size consumers.
• Increase purchase frequency among plus-size customers.

Mission of Zara

Zara’s mission statement is –

“Give customers what they want and get it to them faster than anyone else.”

Their simple, straightforward, and concise statement bears proof of why this company has seen such success. Zara always focused on two things in its mission statement,

• To produce quality products
• To improve lives

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What are the sources of competitive advantage of Zara?

Zara gets a competitive advantage over other rivals by offering its customers trendy clothes at a much more affordable price tag. Zara’s huge team of designers works tirelessly to track and convert the latest fashion into products. The six prime reasons that give Zara the upper hand is –

• Consumer Demand and Response
• Supply Chain
• Just In Time
• Quick Respond
• Forecasting and Continuous Replenishment
• Effective Distribution and Transport System

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What are the problems with Zara’s Business Model?

Like every business, Zara also has certain disadvantages that they need to address.

The biggest disadvantage of Zara’s business model is:

• Since Zara owns all the supply chain channels, it becomes difficult for them to expand to distant locations.
• Secondly, transportation becomes too expensive to distribute products.
• It is extremely difficult to keep pace with the ever-changing global fashion trends.
• Fast fashion or Zara’s core business plan is often questioned about sustainability.
• Most of the final stage production of Zara’s clothing line is done in Spain. It is a country often accused of labour abuse. This is the reason Zara often scores poorly on the Fashion Transparency Index.

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Frequently Asked Questions By Students

1. What are the four marketing mix strategies of Zara?

Here are the four marketing mix strategies of Zara -
●Product Strategy
●Pricing Strategy
●Place and Distribution Strategy
●Promotional and Advertising Strategy
Now to learn more about them, you can contact our marketing experts, who will guide you thoroughly with your assignment.

2. How Well Does Zara Perform Compare To Its Competitors?

Over the decades and more, Zara has successfully been able to compete with similar companies and sustain itself. Zara's strategy is to offer a higher number of available products than its competitors. Hence, its business model combines cost-cutting and sustainable practices. It manufactures its apparel and accessories in bulk to provide them at competitive prices as well.

3. Who can help me with Zara's Case Study Answers?

At MyAssignmenthelp.com, we have MBA experts who have a huge knowledge of brands and their developments over the years. So, you can rely on our experts, who can help you with your Zara case study answers. Moreover, you will get your doubts cleared whenever you ask, and for that, you can connect to our writers on the live chat box 24x7!

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