The quality of Zaras products is the reasons for its compeitive advantage and success in the fashion reatil market. This is because they offer fashionable on trend clothes, meaning they are modern and new fresh ideas that are updated every 2 weeks. The standard of clothing material is also important to Zaras popularity, the managers in producton centers pay attention to the garments ensuring they are made the same around the world, this is key to harmogeous quality across the globe. The consistancy of quality standards is vital to having a loyal customer base, if the consumers have no issues with their products they will come back, also bring new friends and family in aswell. This attraction to Zara is the way they succeed ensuring all the stores are similar around the world, so consumers around the world know they will receive a up to market standard garmet. Zara selects well developed and quality materials for their garmets, allowing them to produce well made clothing globally. Another key factor to the quality of Zara in this market objective is the amount of locations of stores. When people around the world travel to forgien unknown places, seeing the familiar name out from different stores allows consumers to be happy to walk into the store without feeling out of place. (Lewis & Nigel Slack)
Speed
The speed is important to Zaras success, 2 weeks between new products is impressive as it comes straight from the distribution centers to the shop floors very quickly. The process of creating a product to making the actual product is pivotal when new trends are always coming out in the fashion world, changing seasons in different parts of the globe also relates to the speed in which new designs get released. (Lewis & Nigel Slack)
Dependability
As Zara has a set schedule of delivery times and dates to their shops around the globe, the store managers must do an order when possible if they notice they are low on a certain garmet. The dependabilty on ordering is also key as certain people may request a certain product that is being sent through soon, Zara can showcase the newest trends as soon as they can to draw customers in store. (Lewis & Nigel Slack)
Flexibility
This is a very strong part of Zaras operation strategy and business model. Being able to adapt and the capacity to do so into their processes in their market is key. As the fashion industry just desgins clothes for 2 seasons in a year, Zara was able to make clothes for not just summer and winter but for also the inbetween. The desgin flexibilty is cruical as developers are making new products to ship out fortnightly, the variance in store is what is drawing in customers. Manangers in every Zara store has a large responsibility in choosing what clothing and acessories they want instore. Giving this freedom and a chance to choose items lets the manager use their market research and choose what products they know consumers in that particluar area will want, based on consumer buying preferences. Distribution and production centers are very flexible as the centers know orders going out every 2 weeks, so they are able to be well prepped when production starts. (Lewis & Nigel Slack)
Cost
Having low running cocts allows the organisation to be able to produce the items effectively at a low price. Having low costs also means that organisations are able to deliver products to the consumer for a lesser price, creating a demand for garmets. As consumers are always looking for a bargain or low costs when low on disposable income, going to Zara can be a place they can go to buy quailty products but for less money. Low costs on the productions of garment and acessories allows Zara to make a higher return on each item of clothing they sell, therefore creating a large profit margin and meeting goals. Costs on inventory is low, as Zara sometimes makes a few items of clothing per design the whole set of stock may be on the store racks. Having cost effectiveness is important for any organisation to be sucessful, this is what sets Zara apart from the rest in this industry. (Lewis & Nigel Slack)
Question 2
The decision of effectiveness in Zaras operational strategy is down to the Capacity, Purchasing and supply, process technology and improvement programs.
Capacity
Most of the products came from a main distribution center in Spain. This centralised center is key to the efficiency when sending out the garnmets, as every product and shipment can checked well before its sent off. Not all of the garments come from the Spain distrbution center, the rest comes from different countries. Having a large set amount of designers is also very helpful with having new products to ship out each fortnight. Zara produces Womans line, Mens line, Kids, acessories which include jewlerry and shoes, they would need a large team to cover each line to ensure they all have new stock rolling out. Having other distribution centers will help with the growth of the capcity, which then may allow them too produce more of their popular items. (Lewis & Nigel Slack)
Purchasing and supply
Zara creates 10,000 items of clothing per year, which allows them to use their own materials and reduce the wait time or delays on other suppliers. Their suppliers are also very exclusive, which allows them to have a tight relationship and if Zara has any instructions for them, they will comply. Zara also has sub constracters for their sewing machine, they work close by to the headquaters making them dedicated to the job. Headquaters can also, check up on the sewers while making sure they are abiding by the countries laws and working up to the retail standard. (Lewis & Nigel Slack)
Process technology
The CAD system is used in the design stage when finished their final design and are starting on their different materials. It helps the sewers and the headquater team to optimise their materials and use everything effectivetly with minimal waste. The store managers also have digital devices instore to help when feedback of a complaint comes from a customer. This device can help document the changing of the trends and also figure out if a whole batch of clothing was botched, then inreturn this can be followed up in the distriution centers and production centers before the next batch of clothing is sent. The automated system inside is very sopfisticated and ensures that the center is running effeicently and sucessfully. Process technology is vital to saving money, time and optimising efficiency. (Lewis & Nigel Slack)
Improvement programs
As there is only a few items of each product on racks in store, consumers are able to order the same item online at the same price. It is also benefical to people in countries who do not live near a Zara store, having the alternative option to order online is key. Opening the market to different countries can be very beneficial to Zara, as some countries only have 1-3 stores throughout its key that they can open their market up to different potential consumers. Having up to date systems to show up to date forcasts and growth is helpful for Zara to know they are working to meet their goals and targets. Having the research information and the statistics is how Zara can analyse how well they are doing in their market. (Lewis & Nigel Slack)
Conclusion
Zara operations strategy shows that they are sucessful in their market. Having technlogy, speed, quality up to date and fast is the reason they are successful. Also by having low costs and being effective with the way their make their material is key to their success. Zaras management is exicuted well and effectively, as it shows that Zara is a well respected brand world wide.
References
(Lewis & Nigel Slack)