Zara's competitive advantage lies in its ability to quickly design, produce, and distribute new fashion trends at affordable prices. Order qualifiers are basic customer expectations like cleanliness, while order winners are surprising features that exceed expectations. Zara operates with low costs, high quality fabrics, fast time-to-market, flexibility to trends, continuous innovation, and sustainability. Zara's agile operations strategy and supply chain are the source of its competitive advantage in the fashion industry.
Zara's competitive advantage lies in its ability to quickly design, produce, and distribute new fashion trends at affordable prices. Order qualifiers are basic customer expectations like cleanliness, while order winners are surprising features that exceed expectations. Zara operates with low costs, high quality fabrics, fast time-to-market, flexibility to trends, continuous innovation, and sustainability. Zara's agile operations strategy and supply chain are the source of its competitive advantage in the fashion industry.
Zara's competitive advantage lies in its ability to quickly design, produce, and distribute new fashion trends at affordable prices. Order qualifiers are basic customer expectations like cleanliness, while order winners are surprising features that exceed expectations. Zara operates with low costs, high quality fabrics, fast time-to-market, flexibility to trends, continuous innovation, and sustainability. Zara's agile operations strategy and supply chain are the source of its competitive advantage in the fashion industry.
a) What is Zara’s competitive advantage? According to Collier, competitive advantage deals with the companies’ ability to achieve market and have its superiority in financial over its competitors. Zara as a well-known fast-growing fashion brand focuses on its style and quality along with flexibility, speed, and fair value as their competitive advantage. They aim to provide quality service through understanding and giving their customers’ needs and expectations. Aside from that, Zara’s effective and efficient business model is also contributing in their competitive advantage. Zara’s business includes: Design, Sourcing and Manufacturing, Distribution, and Retailing. b) Describe the order qualifiers and order winners. The main purpose of an organization is to provide goods and services of value to customers; which is why it is important to understand first the customers’ needs, wants, and desires.
Basic customer expectations are generally considered the
minimum performance level required to stay in business —called order qualifiers. For example, a shower and bedsheet are generally expected by all customers for a hotel room; for an airline, customers expect to have a clean and safe flight. Order winners on the other hand are goods and service features and performance characteristics that differentiate one customer benefit package from another and win the customer’s business. These are the surprising quality and features that makes the customers more pleased because of exceeding their expectations. A free internet and bath tub can be order winners for a hotel room. c) List the competitive operational capabilities of Zara in terms of: Cost Zara produces new styles and fashion trends inspired from luxury brands in a more affordable price. Quality Their fabrics are especially from France and Spain. They also have fabric utilization and as well as final quality check before packaging. Time Zara has a in demand production which allows the company to have a cost defective production through lowering its storage cost. Zara also operates fast distribution of products through vertical integration. Flexibility Zara provides items according to fashion trends, customers’ need, and store sales. Zara can be considered reactive with its designs as it lies in the extensive network of shoppers with feedback given from wide range of people from different cultures and generations. Innovation Zara produces 1,000 designs per month and 6 collection updates which continuously provide new designs attracting customers to visit their shop. Sustainability Zara addresses the current business needs (trends) to successfully possess the long-term quality d) Write a one-sentence commentary about operations strategy and Zara. Zara’s successful operation strategy, together with its agile supply chain strategy as products of its successful business model led Zara to be the source of its industry-dominating competitive advantage.