BUSINESS STRATEGIES
AND ITS SUCCESS
Teacher: Truong Thi Phuong Trang
Group: 6
Content
01
Overview of Zara
02
ZARA’s business
strategy
03
ZARA Success &
How
A Spanish clothing retailer
• “Possibly the most innovative and devastating retailer in the
world.” – Daniel Piette
• "Spanish success story" - CNN
History
1975
Founded
• Zara founded by Amancio
Ortega and Rosalia Mera.
• It is the flagship retail store of
the Inditex group
History
Instant fashion
1975
1980s
Founded
Zara
changed
the
design,
manufacturing,
and
distribution
process to reduce time and react to
new trend in a quicker way, which
called “ Instant fashions”.
History
Instant fashion
1975
Founded
1980s
1990s
International expansion
In 1988s, the company started its international
expansion through Porto, Portual.
In 1989, it entered the United States.
In 1990s, it expanded through France (1990),
Mexico( 1992), Greece( 1994), Belgium and
Sweden( 1994)
History
Famous retailder
Instant fashion
1975
Founded
1980s
1990s
International expansion
There are more than 2,100 Zara stores located
in 88 countries.
Zara was described by Louis Vuitton Fashion
Director Daniel Piette as "possibly the most
INNOVATIVE and DEVASTATING retailer in the
world.”
Now
Products
MEN'S
CLOTHING
WOMEN'S
CLOTHING
CHILDREN'S
CLOTHING
Stores
BUSINESS STRATEGY
Manufacturing
Products
Warehouse
The system
stores
Manufacturing
• A combination of the flexible and fast resources in Europe
(mainly in Spain and Portugal) and low-cost resources in Asia.
• Launched approximately 11,000 new items per year, compared
to 2,000 - 4,000 for H&M and Gap
Products
Respond very quickly to
Imitate or create the
the changing needs of
latest trends
Click to edit Master text styles
the customers
Second level
Third level
Fourth level
Fifth level
Fast - Fashion
Warehousing
• La Coruna center or similar parts in Zaragoza, northeastern Spain.
• La Coruna center larger than 9 times the size of the Amazon
warehouse
The center moved 2.5 million
items per week
No items in the warehouse
more than 72 hours
The system stores
There are more than 2,100 Zara stores located in 88 countries.
Zara often choose the best places, the prime
locations are often luxurious shopping streets in
the world
Success
Super fast
turnaround
Listens to its
customers
Perfected online
shopping
Supply chain
Supply chain
• Synergy between business and operations strategy
• Just in time production
• Inventory management
• Centralized logistics
Conclusion