Highlights
Executive Summary
The primary aim of this study is to analyse the employment of business strategies by Zara in response to the dynamic nature of the fast fashion sector operating within the global fashionindustry. The objective of this research also focuses on determining the effectiveness of thebusiness model utilised by the brand and dissect the particular attributes that contribute to theextent of its global success. The results of the report show a current view of the company’stactics to leverage its resources and expand within the rapidly changing and highlycompetitive contemporary business environment. The major strategies contributing to thecompany’s global leadership including effective management of supply chain and the firstmover advantage in the fast fashion sector. Zara needs to, however, refocus on thesustainability aspect of its environmental footprint.
Overview of Zara
The leading company in the fast fashion sector is Zara SA, the first brand and topmostsubsidiary under its parent company Inditex, which is the largest retailer in the apparelindustry across the world. Founded in Spain in 1974 by Amancio Ortega and Rosalia Mera,the company today sells in over 2,250 fashion retail outlets globally, exclusive of the ZaraHome brand stores that have a worldwide unit presence of nearly 600 (Statista, 2019).Starting off as a family-owned business operating in a single store, Zara eventually expandedto 96 countries (Zara, 2020).Over the years, Zara has developed an extensive product portfolio that targets a massaudience consisting of varying demographics. Zara offers clothing, shoes, accessories andcosmetics catering both men and women. A recent addition to their line of products wasZara Kids, which produces children’s apparel (Zara, 2020). Although the company’soriginal selling point was its offering of economic knockoffs of high-end fashion products,the brand shifted its focus to introducing its own line of apparel and targeting a largerdemographic. Zara is also now gaining more recognition for its numerous multi-storied storesacross the world with luxurious themes and ambiences, two of which are pictured below
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