Zara Case Study

1. What marketing strategies has Zara adopted in order to establish a unique market position?

Based on the article, this unique market position refers to Zara’s cutting-edge distribution system that delivers fast fashion through vertical integration. The integrated supply chain is entirely controlled by Zara, from design and manufacturing to distribution. Apart from being faster and more flexible than its competitors, Zara produces good quality and trendiest merchandise at affordable prices. The inspirations behind Zara’s constant on-trend merchandise are their customers. Managers are attentive to the customers’ feedback and monitor customers’ reaction, whereby they take note of what they say and relay it back to the headquarters. The marketing strategy that Zara adopts is differentiation, where a business gains and maintains competitive advantage through creating superior product quality, design or service. Zara produces high fashion products at a cheaper price. The quality of their products are not compromised by the speed of manufacturing thus these high fashion merchandises sold at Zara are the primary factor that differentiates Zara from its competitors. According to Miles and Snow’s strategies, Zara takes after a Prospector as they tend to focus on growth through the development of new products and markets. Zara is willing to take the risk and constantly develop new range of products to suit the market’s demand. By willing to listen to their customer’s requests and feedbacks, the in-house designers at Zara are able to come up with new designs to penetrate the market further.

2. How would you answer the question raised in the article, “But can it survive its own expansion?”

At the rapid rate of expansion Zara is undergoing, it is vital to how to be able to sustain that kind of growth while maintaining or improving its current position in the market. To survive its own expansion, Zara has to reinvent itself periodically to remain fresh and keep up with...