Nowadays, Zara could be considered a recognizable brand that attracts the attention of thousands of customers all over the world. The company is focused on retailing clothing and accessories that are described as different from the rest of goods that are presented on the market. Besides, the given market sector is characterized by the increased rivalry because of the high expected incomes. For this reason, Zara tries to preserve its current state by attaining a competitive advantage. Its practice of making limited production runs could be considered one of the ways to maintain the current leading position.
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The efficiency of the approach could be explained by several factors. Today we could observe the oversupply of different goods. However, because of the mass production approach used to manufacture such an ample quantity of commodities, very often these goods possess similar qualities and might look identical. For this reason, customers who buy them could be deprived of the feeling of oneliness as many other people wear the same clothes. At the same time, the improved well-being results in the increased level of demands to the quality of goods.
Zara realizes this trend perfectly. That is why by making limited production runs it emphasizes the unique character of its products. As a result of this approach, there are not so many accessories or pieces of clothes produced by this brand and a customer could enjoy the feeling of belonging to the privileged class which is able to buy Zaras products. Finally, limited production runs could also state for the improved quality of goods as more attention is given to details. For this reason, the given approach helps the company to preserve its competitive advantage and remain profitable.