Application Assignment

Application Assignment

Discussion

Zara is a chain store under Inditex Group which is owned by Spanish tycoon Amancio Ortega. The first Zara store was opened in 1975 and now there are over 1500 Zara stores around the world. Zara is famous because it only needs 4 to 5 weeks to design, produce and distribute a new style of clothing while other famous brands usually need 6 to 9 months to develop a new style. Currently Zara has over 200 fashion designers working for it, and it is able to develop over 1,000 new styles every month. Zara is using a “fast-fashion” strategy; it focuses on finding the popular styles of clothing in every different country or area in the world and design large quantity of styles to follow the fashion.

Products and Services

Zara’s major products are men’s clothing, women’s clothing and children’s clothing, including lower garment, upper garment, shoes, cosmetics and complements and some other products. Basically, it sells most of the thing you need to wear.

The customer is able to purchase from Zara from every Zara store or they can simply surf the internet at home and enjoy the online shopping service. (www.zara.com)

Marketing Strategy

Zara competes at reasonable price by building cost leadership strategy, so even they set at reasonable price they still could gain reasonable margin. And developing differentiation strategy enables Zara to design and finish products in a much shorter time than the competitors.

Product

In order to compete with the local brands, Zara needs to follow the local preferences when designing the products. Hiring local designers and doing market research will be very helpful. For example, when KFC entered China, it constantly changes its recipes in order to cater Chinese’s tastes. Zara should not use the exact same designs as in other countries; products with popular elements in China should be developed.

Place

The places of the over sea subsidiaries and stores are very important. The subsidiaries should...