Competitive Priorities
The four competitive priorities of Zara are time, flexibility, cost, and quality.
The four competitive priorities of Zara are time, flexibility, cost, and quality.
Time
Time is a major competitive priority of Zara because of their extremely fast delivery of their products to their customers. Unlike most, Zara can take their design ideas from straight from the paper to their stores with in just four to six short weeks, which is a ⅓ of the time it takes their competition to deliver to customers.
Flexibility
The second competitive priority is flexibility, because they manufacture their own products they do not have to wait for outsourcing. Unlike most other clothing companies Zara will create their merchandise mid-season, in order to follow the current trends. Also, to stay flexible for their customers, Zara carries 11,000 distinct items in their stores, as compared to the 2,000-4,000 their competitors carry in their own stores. Furthermore, in order to keep their trends, wanted and current they keep low inventories in order to keep up with the constant changes in fashion demands.
Cost
Zara keeps their production costs low by being vertically integrated. Zara uses JIT production, in order to cut their inventory holding costs down as well, which increases their flexibility and inventory turnover rate.
Quality
Zara keep maintains the quality of their products because they manufacture their own goods, and as a result have direct quality control of all of their products. Although Zara may be considered "fast fashion" they do follow the current trends of prestige brands, which keeps their quality above their competition.
Zara’s design, manufacturing, and supply chain capabilities allow it to produce their items in small lots. The supply chain is designed to support just-in-time capabilities with small production lots and frequent shipments to stores.
Low Inventory
Zara seems to be extremely innovative when it comes to inventory. It is one of the main “wastes” in the Toyota Production System. Holding inventory is hazardous for fashion because products that are in demand one day can be out of the industry by the very next day. Zara’s unique manufacturing and supply chain capabilities allow it to maintain low levels of inventory across the supply chain and replenish as often as two times a week.
Zara vs Competitors
The main competition for this company is H&M and Uniqlo who share very similar characteristics in their supply chain management and operations. However, Zara holds a competitive edge against these two companies. H&M outsources its designs and doesn’t directly own any factories, so the time to roll out new designs and put it on shelves takes a few months. Designer collaborations, like the ones with Balmain and Kenzo, drive up prices of the clothing in their collections. Zara utilizes its in-house designers, who gain inspiration from the latest trends, concerts, shows, and virtually anywhere, manufactures at one of its factories that usually has the fabric premade and readily available. The item can be found at its stores worldwide in just four to six weeks. Uniqlo mainly offers minimalist and practical fashion styles and most of its brick-and-mortar stores are in Japan. Zara offers a range of minimalist to basic to high couture designs that can be found in 88 countries.
Time is a major competitive priority of Zara because of their extremely fast delivery of their products to their customers. Unlike most, Zara can take their design ideas from straight from the paper to their stores with in just four to six short weeks, which is a ⅓ of the time it takes their competition to deliver to customers.
Flexibility
The second competitive priority is flexibility, because they manufacture their own products they do not have to wait for outsourcing. Unlike most other clothing companies Zara will create their merchandise mid-season, in order to follow the current trends. Also, to stay flexible for their customers, Zara carries 11,000 distinct items in their stores, as compared to the 2,000-4,000 their competitors carry in their own stores. Furthermore, in order to keep their trends, wanted and current they keep low inventories in order to keep up with the constant changes in fashion demands.
Cost
Zara keeps their production costs low by being vertically integrated. Zara uses JIT production, in order to cut their inventory holding costs down as well, which increases their flexibility and inventory turnover rate.
Quality
Zara keep maintains the quality of their products because they manufacture their own goods, and as a result have direct quality control of all of their products. Although Zara may be considered "fast fashion" they do follow the current trends of prestige brands, which keeps their quality above their competition.
Competitive Advantages
Small Lot Manufacturing
Zara’s design, manufacturing, and supply chain capabilities allow it to produce their items in small lots. The supply chain is designed to support just-in-time capabilities with small production lots and frequent shipments to stores.
Low Inventory
Zara seems to be extremely innovative when it comes to inventory. It is one of the main “wastes” in the Toyota Production System. Holding inventory is hazardous for fashion because products that are in demand one day can be out of the industry by the very next day. Zara’s unique manufacturing and supply chain capabilities allow it to maintain low levels of inventory across the supply chain and replenish as often as two times a week.
Zara vs Competitors
The main competition for this company is H&M and Uniqlo who share very similar characteristics in their supply chain management and operations. However, Zara holds a competitive edge against these two companies. H&M outsources its designs and doesn’t directly own any factories, so the time to roll out new designs and put it on shelves takes a few months. Designer collaborations, like the ones with Balmain and Kenzo, drive up prices of the clothing in their collections. Zara utilizes its in-house designers, who gain inspiration from the latest trends, concerts, shows, and virtually anywhere, manufactures at one of its factories that usually has the fabric premade and readily available. The item can be found at its stores worldwide in just four to six weeks. Uniqlo mainly offers minimalist and practical fashion styles and most of its brick-and-mortar stores are in Japan. Zara offers a range of minimalist to basic to high couture designs that can be found in 88 countries.
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