Question

Enumerate and discuss the linkages among Zara’s choices about how to compete, especially ones connected to its quick-response capability, and the ways in which they create competitive advantage.

Answer 1

Zara is the fast fashions that produce and sells expensive, top-of-the-line apparel. The advantage of Zara’s method is they have local suppliers which have a long term purchase contract. This leads to shorter lead time. Secondly, Zara were able to update sales forecast rapidly throughout the season. They have a dedicated product teams that were responsible for developing and forecasting processes for different product category

Quick response and small production runs are the key drivers of Zara's capabilities. They are also known for their designs and updated new trend which makes them different from their competitors. They also use updated information technology and telecommunications which helps them to store their information or records in their database and also helps them to forecast the sales. Zara has built an image of creating pressure on buyer rather than seller. They have been producing small run production along with the latest trend clothes for medium to high range society. Since Zara is centrally located in the malls or shopping centres, low changing inventory and the ambience makes buyer to buy on same day otherwise the buyer will miss the opportunity on next day.

The above linkage of Zara allows to achieve pioneer or competitive advantage in the fashion industry. With the combination of capabilities such as small production run, quick response time, lower inventory and uptrend fashionable knowledge are important factor for the success of Zara