Zara Company’s Strategic Management and Competitive Edge Case Study

Exclusively available on Available only on IvyPanda® Made by Human No AI

Aspects of Strategic Management

One of the major peculiarities of Zara’s strategic management is its focus on innovation. The founder of the company, Amancio Ortega, opened a clothing store that provided a product that was new and innovative for the fashion industry. The new store offered “high-fashion look-alikes to price-conscious Europeans” (Robbins and Coulter 286). The focus on products’ prices and fashion is still central to the strategic management of the retailer. Clearly, this strategy is very effective during the period of financial constraints many countries (and individuals) are facing at present.

Another important aspect of the company’s strategic management is its emphasis on efficiency as well as speed. Zara is one of the first companies characterized by a very short production and distribution terms (Jarvis). The company has its facilities in Turkey, Morocco, Spain, and Portugal, which is very close to the countries where it operates. This proximity makes it possible to develop designs and distribute items among the stores within two weeks (Robbins and Coulter 286). The speed of the development of new items is beneficial for the company’s success as the consumer society needs more and more products.

Quality control is also an important aspect of the fast fashion leader’s strategic management (Loeb). The company makes sure that each item is of the necessary quality. If any deviations from the high standards (set by the company itself) are detected, the item is removed from the line (Robbins and Coulter 286). Of course, people try to get high-quality products even if they are ready to pay limited sums of money, so quality is one of the major competitive advantages of the company.

Finally, the focus on innovation has led to the introduction of the new area. Zara is going online and develops numerous services to its online customers (Hanbury). E-commerce is evolving at a very high pace, and the number of people shopping online is increasing each day. Therefore, the use of online resources is likely to bring more customers and result in significant growth of the company.

Competitive Advantage

The adherence to its strategic vision enables Zara to maintain its competitive advantage. There are growing concerns that fast fashion companies provide low-quality products due to their desire to sell more and cut their costs (Whitehead). Nevertheless, the quality control system developed at Zara ensures the high quality of products provided (Robbins and Coulter 286).

Another way to maintain its competitive advantage is to reduce the time span between the point when a design is developed and the time when the products appear in the store. It has been acknowledged that fast fashion is becoming even faster as companies reduce the time of product design and distribution. The use of online platforms and one-day delivery is likely to become a new norm in the industry (Friedman). Zara is trying to keep up with other competitors.

Finally, proper marketing and communication are essential for the maintenance of the company’s competitive advantage. Information technology enables businesses to identify their customers’ (as well as potential customers’) preferences and reach wide audiences. The use of social media is instrumental in developing proper relationships with customers. Zara uses the tools and strategies mentioned above. Nevertheless, the industry is very competitive, so the company has to come up with innovative ideas all the time. The major focus should be on quality, prices, and speed.

Works Cited

Friedman, Vanessa. “The New York Times. 2017. Web.

Hanbury, Mary. “Business Insider. 2017. Web.

Jarvis, Paul. “Bloomberg. 2017. Web.

Loeb, Walter. “Forbes. 2015. Web.

Robbins, Stephen P., and Mary A. Coulter. Management. Pearson, 2013.

Whitehead, Shannon. “The Huffington Post. 2014. Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2020, November 13). Zara Company's Strategic Management and Competitive Edge. https://ivypanda.com/essays/zara-companys-strategic-management-and-competitive-edge/

Work Cited

"Zara Company's Strategic Management and Competitive Edge." IvyPanda, 13 Nov. 2020, ivypanda.com/essays/zara-companys-strategic-management-and-competitive-edge/.

References

IvyPanda. (2020) 'Zara Company's Strategic Management and Competitive Edge'. 13 November.

References

IvyPanda. 2020. "Zara Company's Strategic Management and Competitive Edge." November 13, 2020. https://ivypanda.com/essays/zara-companys-strategic-management-and-competitive-edge/.

1. IvyPanda. "Zara Company's Strategic Management and Competitive Edge." November 13, 2020. https://ivypanda.com/essays/zara-companys-strategic-management-and-competitive-edge/.


Bibliography


IvyPanda. "Zara Company's Strategic Management and Competitive Edge." November 13, 2020. https://ivypanda.com/essays/zara-companys-strategic-management-and-competitive-edge/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1