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Importance of Value Chain
Importance of Value Chain
Zara is a Spanish apparel brand specializing in fashion brands such as clothing, accessories,
shoes, and perfumes. Zara company was formed in 1975, which Amancio Ortega and Rosalia
Mera founded. Over the years, the company has increased market share and revenue generation
within the fashion industry. Zara sneakers are the selected product that will require detailed
analysis and evaluation to understand the marketing strategies required. Zara sneakers shoes had
managed to target the young generation who embrace and have a great taste in fashion. Zara
home designs are located in European stores, and it takes 10 to 15 days for the products to reach
the stores. Zara has managed to ensure product diversification in sneakers to provide customers
with a wide range of choices. Zara shoe sneakers have unique designs and products that embrace
The value chain is considered a vital business model that describes the full range of activities
required to create a new product. For Zara to produce sneakers, a value chain will be involved,
which concerns bringing a different product from conception to final distribution. Within Zara as
a fashion brand, the value chain has helped increase the firm's efficiency, allowing the business
to deliver the most value to the customers for the least cost. Overall, its focus is on attaining a
competitive advantage in the fashion industry. Besides, the value chain is essential to Zara
Company as it helps to understand core competencies and some of the suggested areas of
has been delivered. Different raw materials are gathered towards the production of the sneakers
in the company. It is the supply chain team's role to ensure the delivery of high-quality raw
materials for production purposes. Notable generic value chain involves production inputs,
production, packaging and control, distribution and sales, and retailed and consumption. As part
of the production process, there will be cutting, sewing, assembly, and packaging of the final
Inventory management is one of the notable themes discussed to ensure business operations are
efficient. Inventory management helps to ensure Zara maintains only the optimum inventory
level to avoid any financial loss in terms of overstocking. Besides, inventory management avoids
stock-outs and allows better product visibility in the market. Some of the notable actors in this
theme include the company management, supply chain team, and finance team to ensure only
Design
Zara sneakers are made from a combination of various materials. The sneakers' sole has three
layers: insole, midsole, and outsole. The insole is a lean layer of man-made ethylene vinyl
acetate. The midsole components provide bulk cushioning. Generally, it consists of polyurethane
adjoining other materials such as liquid silicone, gel or polyurethane. The outsole of the sneaker
is made of hard carbon rubber. The rest of the sneaker covering is typically made of synthetic
matter with plastic slabs or boards to support the shape. Overall, the company product has a
unique and appealing design that helps create a good impression among the customers.
Zara sneaker design is a crucial piece of work for the product's good look. The design of the
footwear is vital in attracting glances (The engineering behind Shoe Design). The footwear is
made in combination with beautiful designs to attract the entire customer's look and comfort. In
addition, the design takes place in its European stores, focusing on the production of a high-
quality product. Zara stores have both men and women sneakers as well as children. The
majority of its product clients range from 18- the mid-30s. Such a target market has been reached
Its footwear has adjustable lace closure, front and back pull tabs for ease, memory foam fabric
insole, interior lining, and a thick outer sole. The company has invested more than $200,000 on
its latest sneaker design. The engineers of the sneakers design have worked hard to achieve
optimal design for the product. Everyone is different and unique in his way: movement,
structure, and gait pattern. Therefore, the efforts to meet the concerns are further accelerated by
the crucial factors that must be considered in the design; flexibility, shock absorption,
Production
There are a number of raw materials involved in the production of Zara Sneakers, such as
polyester, rubber, and cotton, to ensure the only quality product has been delivered. Leather, Eva
form, PVC sole, threads, dye, foil paper, and neolite. Such raw materials always help ensure the
production of sneakers is carried out based on the customers' specifications. Zara is the shoe
production company selected with its headquarters in Arteixo, Spain. The product is produced in
its storage based in the headquarters within Europe. In recent years, the geography of its
production has not shifted, which has allowed increased market share and sales growth.
The production of sneakers involved a number of the production process, such as sourcing for
raw materials, cutting, stitching, sole making, assembly, and finishing. Such methods are
considered capital-intensive production, which requires a lot of financial resources to make the
final product. Therefore, Zara Company fits well with the post-Fordism model of production. In
this model, employees work on the set production line while repetitively performing specialized
tasks. Through such a model, the company enjoys economics of scope, specialized production,
and new information technologies. The use of the selected model helps ensure there is large-
scale production of shoes to meet and exceed the customers' needs in the market. It is craft-based
Different conditions of employment are available in the industry, which concerns the rules and
policies set by the employer towards the employees. Some of the special conditions of
employment include; work for a minimum of 8 hours a day, 30 days leave once per year,
allowance allowed based on the tasks assigned. Zara Company employs a different workforce to
ensure the production of sneakers shoes, such as skilled and unskilled staff. Employees, both
male and female, are hired based on their level of qualification to support the production and
distribution of the final product in the fashion industry. These employees are paid competitive
remuneration based on their skills and overtime for any extra hours worked. Such a remuneration
level helps ensure employees are highly motivated to perform the production process.
Zara Company has embraced a unique code of conduct applied among the employees in its
operations. For example, the company does not employ employees below the legal age and does
not support any form of discrimination among the employees based on race or gender. Besides,
the company ensures there is the safety of the employees in the workplace by providing all the
necessary safety measures. Such code of conduct are vital to ensure the rights of workers are
upheld which it focus to ensure there is competitive remuneration and no form of discrimination
Since Zara Company is based in European region and ensure there is production of high quality
products, the company lacks any consumer botcotts. However, there are union campaigns
focused at ensuring employees’ rights and welfare has been addressed in the long run. There are
a number trade regulations that have affected Zara value chains such as high tariffs and taxation
which affects the sales of the products in different regions. It is the role of the necessary
government agencies in Spain to ensure such trade regulations are controlled to attain financial
success for the company. In addition, there is a strong buyer-supplier relationship which has been
maintained hence creating good corporate image in the market. Overall, Zara company has
managed to maintain good network and social ties with its customers through introduction of
Marketing
Zara Company has invested in marketing efforts to ensure its products will attain higher market
share in the fashion industry. Its outdoor advertising is eye catching and attractive to the
customers through the use of billboards which focus on the fashion trends. Such advertisement
has high preference on the youth as the target market. Through such billboards, the company is
able to introduce different sneakers in the market in a bid to attract new and existing customers
in the market. Besides, Zara makes of use social media and influencers to increase the product
public awareness. Through Facebook, Twitter and You Tube, the company is able to engage the
customers about any new or existing product in the market. The company has more than 30
million followers on Facebook and 45 million followers on Instagram which provides ready
market for the product. Besides, the company also makes use of celebrity endorsement who also
as influencers on social media such as Cipriana Quann, Shayla Mitchella, Manny Gutierrez
among others. The role of such influencers is to convenience the target market to embrace use of
Zara sneakers in the industry hence growth of market shares and revenue generation.
In addition, Zara also heavily invested on its location as a unique marketing. The company focus
on investing in location and appeal of its stores to attract all the potential customers. The
company will always be located on high-street retailed areas and malls with large number of
human traffic. Its growth and expansion of its stores has provided good and improved corporate
image in the market. The company has more than 3000 stores across the market which helps to
Pricing is also an important marketing efforts put in place by Zara which focuses on the average
shopper who requires the latest fashion at affordable prices. Since customers are always sensitive
to prices, the company has managed to control and regulate the level of prices to attract bulk
purchase from the customers. However, in some stores, the company also uses premium pricing
targeting high income customers. It therefore creates a unique brand image and increases the
Retailing
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Consumption
Zara sneaker is a fashion brand with its main market concentrated in Europe and USA. The
company uses price discrimination which helps to ensure both low and high income earners can
afford to purchase such a product in the market. The main demographics for this market ranges
from 18 to 30 years who have a taste of fashion in the market. On average, the price of Zara
sneakers cost $ 89. Most of the customers decide the purchase the product due to affordable
price, unique and attractive design as well as appealing features. Such an item signifies high
level taste of fashion and elegance among the target market. Since the product is sold globally
through online platform, the geography of its manufacture is not considered when making any
purchase. Overall, ethical consideration was considered in the consumption of the product to