Zara International

       Zara’s business strategy is very efficient. Zara uses IT technologies to fast their tasks and it knows what way is the best to sell more products. Zara takes the newest fashion, produces and sells trendy cloths before it's competitors do. Zara is able to do this because it collects the information quickly. The information of what designs would hit next, or what style is the most popular. Then Zara starts the process to make products as soon as possible. Also this information system can tell managers the trend of each store or number of inventories. Zara does not waste money because it does not have huge number of inventories. Each Zara store has the newest designs twice a week, and would see which cloths are sold well, so that stores can know immediately what they should order additionally. It helps stores to avoid having unpopular products. Besides Zara’s use of technology and its strategies, Zara’s creative team of 200 professionals can help company to keep doing its business efficiently. Zara keeps manufacturing of newest clothing line in home country Spain. It costs more than manufacturing in Asia, however it is worth because they can have higher quality of its manufacturing.

      Zara’s business operation is done in very effective way. Since half percent of Zara’s products are made in their own factory, they can produce trendy items quickly. Zara produces 15% of its new lines six months in advance, and when the season comes, it produces another 50% of them. Thus company could make the trendiest items more when the trend peaks. And it reserves the factories in overseas only for producing items that have long been popular. When the season comes, it starts the production again to produce another 50%. Because of Zara’s proceeding, company would not have to make unpopular products, and it lets the company to be able to cut costs.

      According to Inditex CEO, Zara is trying to cut costs as much as possible. Company is able to be successful in its business because Zara’s management has been done efficiently. Company uses the technology and time wisely, hires employees who have great ability of their tasks, and company’s original business strategy sustains company and makes its business expanded. Zara corrects the latest information of fashion more quickly than rivals, and starts in production immediately with high skilled employees to provide consumers affordable high-fashion items as fast as possible.

      Even though there are many competitors that do good business as like Zara does, each company uses different way to be top among them. For instance, UNIQLO, which is another successful apparel company that sells affordable and good quality cloths and fashionable items, is not like Zara. Products of UNIQLO are not influenced by the trend. Their plan of production is made in advance and would not be changed. They sell the products that are better quality, cheap, and popular for long time. Newest fashion always becomes popular very quickly but once peak time is passed, another new fashion comes and apparel companies would rush to produce new products. Zara is able to do this process quickly and efficiently. Its technics are admired by other apparel industries. Company’s expansion of the business over the world would influence more apparel industries to follow them as a good example.

      http://www.gaebler.com/IT-Fashion-Industry-and-Zara.htm

   http://www.slate.com/articles/arts/operations/2012/06/zara_s_fast_fashion_how_the_company_gets_new_styles_to_stores_so_quickly_.html