StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

What Business Is Zara - Essay Example

Cite this document
Summary
The essay discusses What Business Is Zara In. Zara is a company that is in the business of designing, manufacturing and distributing fashion garments. It manufactures children, women or men garments which are stylish. A business model is a formal description of what a business entails…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.2% of users find it useful
What Business Is Zara
Read Text Preview

Extract of sample "What Business Is Zara"

ZARA: IT FOR FAST FASHION College What Business Is Zara In? Zara is a company that is in the business of designing, manufacturing and distributing fashion garments. It manufactures children, women or men garments which are stylish (Niesewand, 1998). What is a business model? A business model is a formal description of what a business entails. It gives the core aspects of a business which include purpose, offerings, strategies, infrastructure, organizational structure, trading practices, and operational processes and policies (Armstrong, 2007). Apparel Industries GAP Business Model GAP analysis is the documenting of determined and approved variance between business requirements and the current business status. It reveals the factors of business that need to be improved. GAP analysis is done at strategic or operational level of business. Serve as a guide to drive the business to its target goals. GAP model give the contributory factors of each GAP of analysis. Why GAP, Inc Spend More On Advertising GAP INC, spend more on advertising since it started as a seller of signature branded jean and white t-shirt for children and now it is selling men, women, children and babies clothes so it need to advertise its new designs but it focused only on physical sales. As it now trying to get to online sales it has to spend more. The primary objective for this advertising is to market its new brands so as to compete for market with other companies on the online selling (Niesewand, 1998). How often does GAP introduce new line of clothing? GAP introduces new line clothing not regularly but approximate once in a year. This is during periods when its sales are high. Sales are high about thirteen weeks a year during the back to school/ work and holiday periods (Niesewand, 1998). GAP, Inc does not manufacture its clothes: it is a retailer company sourcing its clothes from various factories. Sources of risk to GAP, Inc 1. The company has a narrow niche 2. It is limited in sales and growth 3. GAP does not have distinct names for its brands in certain sectors like Nike, Reebok in sport wear industry (Niesewand, 1998). How does GAP make money? GAP makes its money majorly through sales and partly through return on assets and debt. Its financial performance is given by financial ratios which include; return on sales, leverage ratio, solvency ratio and liquidity ratios. GAP’s core competencies and competitive advantages 1. GAP was able to be rated as one of the highest in retention of customers. This advantage is facilitated by the developed sense of customer classlessness by the company. 2. GAP has been in the market for long and so it made a trademark in customers minds. Its wide variety of brands ranging from babies way, casual clothing to sport wear and men’s official has made it widely known. Through the years it has build a reputation from its high quality production. 3. It used a vertical organizational structure so it had not to pay retailers to sell its products since it had a direct contact with customer preference (Armstrong, 2007). Zara Business Model Zara business model is unique and distinct from others because it has taken control of its supply chain independently. It understands the market and its demands. The key features of Zara business model are; Use of technology; technology has enabled Zara to communicate directly with its production centers and designers. It has also facilitated direct placement of ordr4s by store managers basing on the demands of that region. Understanding customers demand. Zara produces new collections every three weeks and this is done after analysis of the design in most demand by customers through the store managers. Use of personal digital assistance. Store managers use PDAs to place orders as requested by customers. This has facilitated time delivery as it has allowed a customer to even get the product within two days. Being customer based. Zara send group of commercials to different countries in which its stores are located to observe the style of cloth wear so that specific style is designed for specified country. This ensures that customer demand in that area is met. Freedom to employees. Zara has an organizational structure that supports attainment of its goals since it allows its employees to place orders of design of choice, set the prices and deciding what to display in their stores (Niesewand, 1998). Innovative linking of its sections. Zara has linked the integrated supply chain, capabilities, and value driver to ensure an effectiveness of meeting customers demand. Fully integrated supply chain. All production stages is done in Zara’s factories. Zara is so independent hence no outsourcing of any stage of production and design. Capability combination. Zara has combined both human capital and technology to ensure effectiveness and speedy work. Customer value driver. Zara values its customers in that customer interest is the first priority and core value. Disruptive Business Disruptive business is a redefinition of innovation. It is a dynamic in response to the change in human behavior which requires shaping of new responses in business and economy. The key element of Zara in disruptive business is its excellent business model (Armstrong, 2007). Distinctive Competencies of Disruptive Zara Flat organizational structure is very unique. Zara has employed a combination of both information technology and human intelligence. Employees are allowed to set designs , place orders and even set prices. These steps are critical and have made Zara distinct from other companies. Integration of supply chain has helped Zara meet customer taste with administration of minimum cost. It has helped Zara have control over production and be able to meet customer’s choice with a help of its short supply chain. Competitive Advantages Of Disruptive Company Low operational cost: Like in the case of Zara, the integrated supply chain, combination of human intelligence and independence has made it achieve it’s the most desired goal of minimum cost of operation. To clearly bring out this advantage we can compare it with GAP which mainly depend on outsourcing and is not able to reach to customer taste in time. Speed of production: new design style observed in the market by commercials is speedily produced in time to satisfy customers demand in time. The independence of Zara has made it win the larger market share since its able to meet customer styles and fashions in time. This is facilitated by its flat organizational structure. Core characteristics of Zara’s target customer 1. High quality wears customers. 2. Zara focus on all genders ( non discriminative) 3. Zara’s customers include high income earners, low earners, men, women and children. Target customer behavior Being a non discriminative model, customers have build confidence in the model. Their taste of clothes is being designed on request of order and delivery of orders is submitted fast in time. Zara has build loyalty in its customers since it is obedient to their demand. The customers are trustworthy since when they order stylish fashion design Zara manufacture them with the trust they are going to sell (Armstrong, 2007). Why do Zara’s customers have the behaviors mentioned? Zara’s use of flat organizational structure has helped its employee in the commercial field interact with customers and do survey of fashions of certain regions. This fashions are the designed and manufactured making them available to customers hence building a trust in the customers (Niesewand, 1998). Zara has good communication system linking its stores and the factories hence this ensures that there is timely delivery of customers order. This also makes customers loyal to their orders and purchases them (Armstrong, 2007). Zara Business Model References Armstrong, D. (2007, June 8). We Both Have in Common the Ability to Think beyond Our Comfort Zones and Aim High ; How We Met ++ Zaha Hadid & Nadja Swarovski. The Independent. Retrieved April 12, 2013, from http://www.questia.com/library/1P2-7501140/we-both-have-in-common-the-ability-to-think-beyond Niesewand, N. (1998, October 2). Architecture: What Zaha Hadid Next When a New Exhibition at the Hayward on the Relationship between Art and Fashion Needed a Designer, an Architect Who Wears Manolo Stilettos and Miyake Pleats Was the Obvious Choice. The Independent. Retrieved April 12, 2013, from http://www.questia.com/library/1P2-4947198/architecture-what-zaha-hadid-next-when-a-new-exhibition#articleDetails Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“What Business Is Zara Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Retrieved from https://studentshare.org/business/1620644-what-business-is-zara
(What Business Is Zara Essay Example | Topics and Well Written Essays - 1250 Words)
https://studentshare.org/business/1620644-what-business-is-zara.
“What Business Is Zara Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/business/1620644-what-business-is-zara.
  • Cited: 0 times

CHECK THESE SAMPLES OF What Business Is Zara

Zara Incorporation as a Business

The paper is hereby presented to determine What Business Is Zara in and in the process, to describe both the business model for the industry and the business model for Zara.... The paper is hereby presented to determine What Business Is Zara in and in the process, to describe both the business model for the industry and the business model for Zara.... The task was explicitly stated as identifying What Business Is Zara in.... The case analysis initially requires following the indicated instructions and process outlined in the zara CaseQuest (Doiron, n....
6 Pages (1500 words) Essay

Business strategies of Zara

This essay analyzes corporate responsibility, ethics public relations and stakeholder issues, and business strategies of zara.... zara is one of the leading fashion companies in Europe and has always been regarded as one of the most employee and environment-friendly companies of Europe.... hellip; This paper presents a brief report on the management strategy of zara and gives a detailed analysis of both the internal as well as external environments....
17 Pages (4250 words) Essay

Zara Company Business Model

Disruptive Business Model Disruptive business model refers to a business idea that is extremely different from the way business is normally conducted.... This paper shall seek to explain Gap Inc contributions in the apparel industry, disruptive business models, the zara business model, as well as the manner in which it is different from other business models used by other firms in the apparel industry.... hellip; In the current highly competitive business environment, several firms opt to send out non-core operations to manufacturers or suppliers so that they may focus on the main operations only....
4 Pages (1000 words) Essay

Zara Business Performance

zara is Spanish clothing and accessory retailer.... … zara Business.... zara is Spanish clothing and accessory retailer.... From there it expanded into 79 countries with 1,830 stores all across Asia, Europe, Africa and America (Qureshi, Store Wars: zara and Mango, 2012).... zara's main target customers have always been young, price-conscious people who are very sensitive to latest fashion trends.... According to the article ‘Analyzing zara's Business model' its product line is divided in to 60% for women, 25% for men and 15% fast growing children (Analysing zara's business model , 2011)....
3 Pages (750 words) Essay

Business report on ZARA

The purpose of the current essay is to examine the business of the zara company, which is a world-renowned player in the clothing and fashion industry.... hellip; zara is a world-renowned player in the clothing and fashion industry.... Today, it can be safely stated that zara is a market leader.... zara operates in a highly competitive industry.... The favorable political environment made possible by the political stability in the country and favorable government policies have been a key silent factor in the success of zara's production unit....
5 Pages (1250 words) Essay

International Business Strategy of Zara

The firm that is analyzed in the paper is zara.... This essay will make an attempt to discuss zara's business model to understand whether its transnational business strategy is flexible, efficient and adapt to a learning process, which, according to Ghoshal's model, are the goals of a global firm.... hellip; This paper endeavors to demonstrate the effectiveness of zara - the largest flagship in Inditex in accessing a supranational context in pursuit of the three goals of efficiency, flexibility and learning, by indicating the enterprise's overall strategy and the particular tactics it used in pursuing each and its comparative success in doing so....
15 Pages (3750 words) Case Study

Zara Case Study

 In the paper “zara Case Study” the author analyzes zara's business model.... zara's fundamental concept is to maintain design, production, and distribution processes that will enable zara to respond quickly to shifts in consumer demands and tastes.... hellip; The author states that at the heart of zara's success is a vertically integrated business model spanning design, just-in-time production, marketing and sales....
4 Pages (1000 words) Coursework

Zaras Business Model

From the paper "Zaras Business Model" it is clear that zara has various opportunities and resources that would help the group meet its goals in the process of satisfying clients.... zara has various opportunities and resources that would help the group meet its goals in the process of satisfying clients.... To achieve this, zara maintains both manufacturing and design processes in-house.... From the tangible perspectives, Inditex that owns zara operates a net margin of slightly more than eleven percentile both in the market capitalization and operational activities....
7 Pages (1750 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us