Get instant access to this case solution for only $15
Zara The Capabilities Behind The Spanish Fast Fashion Retail Giant Case Solution
The source of sustainable competitive advantages is supply chain and innovation for Zara. Both are critical factors for long term success in the fashion world. The areas where Zara needs to focus most are utilizing the unexploited competitiveness of its sales strategy. Fashion marketing has a direct influence on consumer demand (Jamal & Misra, 2014). The strategy needs to be more aggressive and direct. Perhaps Zara can engage its customers through some software and gauge their preferences. It will also reduce the chances of human bias and error and make it more costly and inimitable.
Following questions are answered in this case study solution
-
Complete the VRIO assessment based on the various resources to determine their level of competitiveness from the four VRIO factors (yes or no).
-
Provide a determination for each element as to the implication for competitiveness: disadvantage, parity, temporary advantage, or sustained advantage. Why?
-
Based on your determinations for criteria for competitiveness, discuss the implications for Zara. What should they build on, and how and what areas need actions or tactics?
Case Analysis for Zara The Capabilities Behind The Spanish Fast Fashion Retail Giant
1. Complete the VRIO assessment based on the various resources to determine their level of competitiveness from the four VRIO factors (yes or no).
Resource/Capability |
Valuable? |
Rare? |
Difficult to Imitate? |
Organized so difficult to substitute? |
The implication for competitiveness- Level of competitiveness |
Management of internal capabilities & resource |
Yes |
No |
No |
Yes |
Efficiency and time saving |
Brand name and reputation |
Yes |
No |
No |
Yes |
Credibility among customers |
Innovation and design ability |
Yes |
Yes |
Yes |
Yes |
Competitive advantage |
Supply Chain/Logistics |
Yes |
Yes |
Yes |
Yes |
Customized products delivery in less time |
Commercial sales specialists |
Yes |
Yes |
No |
Yes |
Knowledge about customer's taste |
Online Strategy |
Yes |
Yes |
No |
No |
Unique |
Management of internal resources, including Human resources, is valuable for the firm. Zara has leveraged its resources to gain a competitive advantage. The model that Zara is operating is providing fast fashion to customers before anyone else. The fast pace cannot be maintained without leveraging internal resources and capabilities. The practice is very crucial and valuable for business success. Although it's not very rare or difficult to imitate as many successful brands do the same. The brand name and reputation is also precious but again not very rare or difficult to imitate. Innovation is the most crucial component of business success and growth (Tohidi & Jabbari, 2012). It is also rare and difficult to substitute, and many business fail in this particular dimension. The supply chain is another critical area that makes or breaks a business. The right product should be delivered at the right time for business success (Abdul, Mia, Islam, & Csca, 2017). Zara has used that to control the supply chain elements, like maintaining the supply of basic clothes and their dyeing. The strategy of using sales specialists to gauge customer preference is also rare and valuable as few organizations go to that length to connect with the customers. The online sales strategy is pulling instead of push, and it is unique as customer follow the brand will entirely for its creative fashion and designs.
2. Provide a determination for each element as to the implication for competitiveness: disadvantage, parity, temporary advantage, or sustained advantage. Why?
-
Management of internal capabilities & resource: Temporary competitive advantage, it is valuable but not very difficult to imitate neither rare.
Get instant access to this case solution for only $15
Get Instant Access to This Case Solution for Only $15
Standard Price
$25
Save $10 on your purchase
-$10
Amount to Pay
$15
Different Requirements? Order a Custom Solution
Calculate the Price
Related Case Solutions
Get More Out of This
Our essay writing services are the best in the world. If you are in search of a professional essay writer, place your order on our website.