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Special Features of the Zara Company’s Business Model

Zara has been dominating the apparel industry due to its unique business strategy incorporating the principles of sustainability ad cost-efficient production.

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In the apparel industry, developing a sustainable business model is extraordinarily difficult due to high competition. However, Zara somehow managed to create a functioning business model that not only set it apart from others but also helped it to become a leader in the retail apparel market (Dewalska-Opitek & Bilińska-Reformat, 2021; Popović-Šević et al., 2021). By incorporating vertical integration, which helps it streamline its processes, with logistics trade-offs, which lead to a drop in expenses, Zara’s business strategy has superseded those of H&M, which focuses on quality-price balance, and Gap, which offers a replica of trends for a lower price.

Despite the evident dominance of Zara’s approach compared to those ones of H&M and Gap, the three share certain similarities in their business strategies. First, each of the organizations seeks to introduce cost-efficient measures into its framework (Javed et al., 2020; Dabija, 2018).

In addition, the emphasis on the quality and luxury of the products is also evident (Nguyen, 2020; Shabir & AlBishri, 2021). However, the differences in the strategies utilized by the organizations are also quite clear. Specifically, Zara’s emphasis on coordinating every process within its framework as an element of a single system within its environment gives the company an advantage in data management and seamlessness in operation management and the use of resources and capabilities (“Fast-fashion brands and their fast strategies,” n.d.). From the sustainability and process efficiency perspective, the described approach offers greater benefits.

Furthermore, Zara’s approach benefits from improved logistics infrastructure and the expansion of customer services. Combining an innovative strategy and go-to thinking, the changes in the infrastructure have made it possible for Zara to select the most impressive and luxury sources of supply material (Esmiol et al., 2012; Aftab et al., 2018). As a result, Zara’s prices are not as affordable as those at Gap and H&M, yet the quality of its product remains superior, attracting multiple customers.

Reference List

Aftab, M. A., Yuanjian, Q., Kabir, N., and Barua, Z. (2018) ‘Super responsive supply chain: The case of Spanish fast fashion retailer Inditex-Zara’, International Journal of Business and Management, 13(5), p. 212.

Dabija, D. C. (2018) ‘Enhancing green loyalty towards apparel retail stores: A cross-generational analysis on an emerging market’, Journal of Open Innovation: Technology, Market, and Complexity, 4(1), p. 8.

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Dewalska-Opitek, A., and Bilińska-Reformat, K. (2021) ‘To what extent retail chains’ relationships with suppliers make the business trustworthy – An empirical study on fast fashion in pandemic times’, Journal of Risk and Financial Management, 14(4), p. 153.

Esmiol, E. E., Knudson‐Martin, C., and Delgado, S. (2012) ‘Developing a contextual consciousness: Learning to address gender, societal power, and culture in clinical practice’, Journal of Marital and Family Therapy, 38(4), pp. 573-588. Web.

Fast-fashion brands and their fast strategies. (n.d.). Web.

Javed, T., Yang, J., Gilal, W. G., and Gilal, N. G. (2020) ‘The sustainability claims’ impact on the consumer’s green perception and behavioral intention: A case study of HandM’, Advances in Management and Applied Economics, 10(2), pp. 1-22.

Nguyen, T. (2020) ‘Fast fashion, explained. Vox. Web.

Popović-Šević, N., Jeremić, A., Slijepčević, M., and Ilić, M. (2021) ‘Marketing focused on the online brand community: The example of Zara. Marketing, 52(1), 32-42.

Shabir, S., and AlBishri, N. A. (2021) ‘Sustainable retailing performance of Zara during COVID-19 pandemic. Open Journal of Business and Management, 9(03), 1013.

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