Zara Case

responsible for the frequent refurbishing of store layouts, as well as the creation of a common window display for Zara’s global stores. The display positions Zara in the industry with a prestigious and elegant image. By targeting a broad market Zara has an international advantage over its competitors. Zara’s target market is very broad because they do not define their target by segmenting ages and lifestyles as traditional retailers do. Zara’s target market is a young, educated one that likes fashion and is sensitive to fashion. Today, people around the world through various communication devices have more access to information about fashion. Therefore, fashion has become more globally standardized and Zara uses this to their advantage by offering the latest in apparel. For that reason, 80- 85% of the products that Zara offers globally are relative standardized fashionable products. This is due to the fact that Zara’s marketing teams believe that a product that sells well in a fashion capital such as New York will most likely sell well in another such as Milan, Sao Paulo or Madrid since fashion has become more globally accessible. On which way can vertical integration of zara be an advantage for the company?  Cutting cost because they do not outsource any channel.  Cutting time, more faster, effective, and efficient.  Avoid conflicts emerge from different channels. On which way can the fact that zara has a single distribution centre be an advantage?  Centralized control, avoid misunderstanding or conflicts.  Manageable time scheduling, focused on one rather than managing several different time schedules. On which way can this be an disadvantage?  Diseconomic of scale – in long term, the costs is getting higher and higher.  Because of managing distributions on their own, designing and production process might not be in its optimum level.

9. Recommendation  Design Cooperate with vary range of designers so Zara can maintain its competitive advantage to be...