Zara Innovation Management

Topics: Supply and demand, Galicia, A Coruña Pages: 1 (381 words) Published: October 2, 2011
Zara is one of the most successful international retailers in the world. It is true that Zara is one of the top 60 innovators on The Innovation Index. Zara has become an impressive clothing brand throughout the world. Zara was described by Louis Vuitton Fashion Director Daniel Piette as "possibly the most innovative and devastating retailer in the world."

Zara first began its activity with the opening of its first store in A Coruna in Spain in 1975. Its first store outside Spain was opened in Oporto in Portugal in 1988. Because company was fairly new during the these years, there were not any innovative actions. During 1989, the outlets in New York and Paris were opened. It is the flagship brand of Spanish retail group, Inditex SA (Dutto, 2002). Zara has over 1000 stores worldwide and the latest one was opened in Guatemala in 2007 (Tokatli, 2002).

When it was first founded, Zara had the advantage of latecomer to the market. Because during 1980s, something started to change and the manufacturing had shifted to the low labor cost countries. Old companies spent vast amount of money to adopt these new developments, but Zara had the chance to combine old technology with the newer one and to create a better manufacturing systems. They don’t spend money on commercials, because they are spreading their ‘brand’ with verbal communication between customers and with their label on little bags. They have innovative manufacturing process, which allows them to be quick in responding to market demand and to send clothes which are selling good to their shops, and they also do some re-designing in that time Zara started its manufacturing in Spain and Portugal in order to use low labor in these countries (Tokatli, 2006).

Zara knows how to do the best strategic innovation. Actually, strategic innovation is the source of four benefits with varying degrees of impact on businesses: _ It opens to new market spaces and reconstructs market boundaries. For a business, it is...
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