Business Operation Strategies on Zara Example
Task 1
Zara’s core competencies
The success of Zara’s company is attributed to the understanding of the dynamic market changes, which enables them to respond quickly to the change in demand. In doing so, they manage to have a competitive advantage over their competitors. They are always on the lookout, whereby they are able to collect data quickly and address them according to the customers’ needs. Therefore, for the company’s success, there has to be a combination of factors core competencies that ensure maximum value to the customer.
They include;
Swiftness
Zara’s supply chain operations are proficient enough to quickly respond to customers’ needs as well as coping with the changing market thus giving them value for their money. In achieving this, one need to have a very efficient and dedicated team of market experts who have the desire and hunger to achieve. Zara’s designers are well sophisticated with technology with the understanding that fashion is a short term cycle.
Wide range fashion
Having a wide variety of unique products in the fashion retail industry is another element that is key to Zara’s success. This is brought about by young and innovative designers who are always alert to changes in technology that influences market trends, thus offering Zara a great competitive advantage over their close rivals.
Operation management issues
One area that has enabled Zara to thrive in the market is its strategic mode of operation. They have invested heavily in computer aided designs that enable them to assess markets by conducting a thorough research which helps in cutting down the cost of production. To effectively control business operations from production to delivery, Zara has managed to put in place a computer system that maintains the fluid communication
between the phases. This system is capable of doing a variety of things such as designs, market research, orders/delivery, forecasting among others. In addition, the systems employ proprietary software which can
effectively analyze market trends.
On the hand, Zara’s productions are environmentally friendly. They have managed to ensure environmental sustainability in their operations which include cutting down power usage by significant amounts, recycling of
decorations, furniture, organic materials, and biodiesel. This has significantly helped in creating and maintaining a good image for the company which is good for the business. Another key factor is keeping design and manufacturing processes close to the management. This has enabled Zara to manipulate designs easily and produce new ones very quickly.
Why do other firms take longer to go from design to delivery? How can they improve?
Having a dedicated team has helped Zara gain a competitive advantage over other firms. The team is highly motivated and skilled …
