Unemployment and Zara
Value Creation in the Global Apparel Industry
Case Analysis #3
By
Deborah Bennett
Julie Bryan
Wynette Gayle
Vivian Pankey
Neisha Vitello
Executive Summary
Zara is the flagship fashion retail company under the parent corporation Inditex. First opened in Spain, Zara currently has a network of 1,292 stores spread across 72 countries. The infrastructure Zara has built is a core competency. Their innovations to bring new fashion designs to market faster than competitors differentiates Zara from their rivals. Managers believe the allure of Zara is the freshness of its offerings, the creation of a sense of exclusiveness, an attractive in-store ambience, and positive word of mouth (Daniels, Radenbaugh, Sullivan, 2011). The strategic innovations in design, production, logistics, distribution, and retailing activities have made Zara a global leader that is now moving into the United States. This paper will examine five of the external influences that will shape the response and ultimately the success Zara will have adapting to the physical, social and competitive factors in the United States clothing retail industry. The external influences examined will be; competitive dynamics, economic conditions, technology standards and trends, cultural orientation, and customer expectations. Zara continues expansion in the Untied States, currently with 49 stores coast to coast. Their differentiation strategy has been successful (Maiellaro, 2010). Zara’s strategy and business design leave rivals with less time to figure out how to better configure and coordinate operations. As U.S. competitors attempt to follow Zara’s lead, Zara continues to set the pace and increase the distance between them and the competition.
Issue Identification Zara came to the United States, first in New York City in 1989. With more than ten years in the states and 49 locations Zara is making their mark in the fashion industry. With the external influences impacting Zara’s
Case Analysis #3
By
Deborah Bennett
Julie Bryan
Wynette Gayle
Vivian Pankey
Neisha Vitello
Executive Summary
Zara is the flagship fashion retail company under the parent corporation Inditex. First opened in Spain, Zara currently has a network of 1,292 stores spread across 72 countries. The infrastructure Zara has built is a core competency. Their innovations to bring new fashion designs to market faster than competitors differentiates Zara from their rivals. Managers believe the allure of Zara is the freshness of its offerings, the creation of a sense of exclusiveness, an attractive in-store ambience, and positive word of mouth (Daniels, Radenbaugh, Sullivan, 2011). The strategic innovations in design, production, logistics, distribution, and retailing activities have made Zara a global leader that is now moving into the United States. This paper will examine five of the external influences that will shape the response and ultimately the success Zara will have adapting to the physical, social and competitive factors in the United States clothing retail industry. The external influences examined will be; competitive dynamics, economic conditions, technology standards and trends, cultural orientation, and customer expectations. Zara continues expansion in the Untied States, currently with 49 stores coast to coast. Their differentiation strategy has been successful (Maiellaro, 2010). Zara’s strategy and business design leave rivals with less time to figure out how to better configure and coordinate operations. As U.S. competitors attempt to follow Zara’s lead, Zara continues to set the pace and increase the distance between them and the competition.
Issue Identification Zara came to the United States, first in New York City in 1989. With more than ten years in the states and 49 locations Zara is making their mark in the fashion industry. With the external influences impacting Zara’s
References: June 2010, Current Economic Conditions, Econbrowser, Accessed November 24, 2010 http://www.econbrowser.com/archives/2010/06/current_economi_4.html Lopez, Carmen, Fan, Ying, Internationalisation of Spanish Fashion Brand Zara , Brunel Rachel-Northeastern. (2010, May 10). Runway for Under $25: Zara Spring 2010. Retrieved from http://www.collegefashion.net/fashion-tips/runway-for-under-25- zara-may-2010/ Towers, Steve