What are the company's competitive positive aspects?
Zara is usually вЂfast fashion'. In order to resistant this statement we are examining different pieces where we can see their competitive advantages. Style
The designers go to trend shows, they develop sketches and while that they select fabric, the price of every single product is already determined. The collection has to arrive in the stores in the beginning of the offering season. In order to keep up with the trends that they not only go through the sales info but they also have frequent discussions with the store managers. They do this trough the entire season, not only at the end. The moment there is an obvious trend, they adapt many immediately, whenever possible. Sourcing and manufacturing
They may have an efficient process: it took only one week to complete fabric. Zara's factories will be heavily automated and centered on the capital-intensive parts, a final finishing and inspection. In 1990 Zara did an investment for employing just on time management. Division
The representative of logistics of Inditex (Lorena Alba) regarded the warehouse as being a place to push merchandise rather than to store this. The clothes never stayed at longer on the distribution middle than 3 days. The distribution middle is more than needed. By way of example: At the beginning of the two selling conditions there are a lot more than 1000 staff employed in the distribution middle in Zaragoza (Spain). Selling & merchandising
The price of Zara's clothes are allowed to be lower than the price tag on most rivals. This is conceivable because of a reduced supply cycle, reductions in advertising and markdown requirements. Zara put in less income on marketing compared for many specialty merchants. Because they only promoted at the end from the season while using start of any sales period, they did not really create a strong Zara image of a specific goal group (like Mango do with вЂMango Girl'). Zara wanted to produce a climate of scarcity and opportunity. The consumer walks into a beautiful...
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