Business Model and Competitive Analysis

May 29th, 2015
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the Americas, Asia and Africa. Throughout this expansion Zara has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. In order to realized these results Zara developed a business model that incorporated the following three goals for operations: develop a system the requires short lead times,

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Question 1 Zaras Business Model and Competitive AnalysisZara, the most profitable brand of Inditex SA, the Spanish clothing retail group, opened its first store in 1975 in La Corua, Spain; a city which eventually became the central headquarters for Zaras global operations. Since then they have expanded operations into 45 countries with 531 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa. Throughout this expansion Zara has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. In order to realized these results Zara developed a business model that incorporated the following three goals for operations: develop a system the requires short lead times, decrease quantities produced to decrease inventory risk, and increase the number of available styles and/or choice. These goals helped to formulate a unique value proposition: to combine moderate prices with the ability to offer new clothing styles faster than its competitors. These three goals helped to shape Zaras current business model. Zaras Business ModelZaras business model can be broken down into three basic components: concept, capabilities, and value drivers. Zaras fundamental concept is to maintain design, production, and distribution processes that will enable Zara to respond quickly to shifts in consumer demands

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