International University of Business Agriculture and Technology

Assignment

Of

BUS 203 (International Business)

Submitted To:

Iftakhar Nayma

Assistant Professor

College of Business Administration

IUBAT

Submitted By:

Nafisa Tabassum Ishika

Id-21102018

Section- A

Serial no: 19

Program: BBA

Semester: Summer, 2023

Assignment Deadline:

11th June, 2023 (Tuesday)

 Case Study: “Zara’s Disruptive Vision: Data-Driven Fast Fashion

Question 12-1: Evaluate how Zara translates its “Give customers what they want, get it to
them faster then anyone else” into its day-to-day operations.

Answer: Zara's approach of "Give customers what they want, get it to them faster than anyone
else" is embedded in its day-to-day operations through several key strategies which are discussed
below:

a) Fast Fashion Model: Zara's core operational strategy revolves around fast fashion. The
company constantly monitors customer preferences and market trends, which enables it to
quickly identify and respond to changing fashion demands. That’s why, Zara translates this
vision by designing, producing, and delivering new clothing collections in small batches at
a rapid pace.
b) Agile Supply Chain: Zara's supply chain is designed for speed and flexibility. Instead of
outsourcing production to low-cost countries, Zara owns a significant portion of its
production capacity, including factories in Spain. This proximity allows for quick
turnaround times and ensures close control over the manufacturing process.
c) JIT Manufacturing: Zara operates on a "pull" system, manufacturing garments based on
actual customer demand rather than forecasts. This approach helps to minimize inventory
levels and reduce the risk of unsold stock. Zara's stores serve as its main market intelligence
gathering points, as they provide real-time feedback on customer preferences.
d) Data-Driven Decision Making: Zara heavily relies on data and customer insights to guide
its day-to-day operations. The company collects information from various sources,
including point-of-sale data, customer feedback, and market research. This data is analyzed
to identify emerging trends, which are then incorporated into the design and production
processes, ensuring that Zara's offerings align with customer preferences.
e) Quick Response System: Zara's Quick Response (QR) system facilitates rapid
communication and collaboration between different parts of the organization. It enables
quick decision-making, ensuring that market insights and design changes can be swiftly
communicated to suppliers and production teams.

Overall, Zara's day-to-day operations reflect its commitment to speed, customer-centricity, and
data-driven decision making. By integrating various operational strategies, Zara effectively
translates its vision into practice, allowing the company to continuously deliver fashionable
products to customers faster than its competitors.

Question 12-2: Assess the difficulty a competitor, such as Gap, faces recreating the resources,
capabilities, and competencies that define Zara.

Answer: Recreating the resources, capabilities, and competencies that define Zara would pose
significant challenges for a competitor like Gap. The following points below are an assessment of
the difficulties Gap would face in replicating Zara's success:

a) Fast Fashion Supply Chain: Zara's vertically integrated and agile supply chain is a key
driver of its success. It would be challenging for Gap to quickly establish a similar system.
Developing or acquiring manufacturing facilities and establishing close partnerships with
suppliers to ensure quick turnaround times would require substantial investments and time.
b) Data-Driven Decision Making: Zara's ability to gather and analyze data in order to inform
design and production decisions is a crucial competitive advantage. Gap would need to
invest in sophisticated data collection and analysis capabilities, as well as develop a culture
of data-driven decision making throughout the organization. This transformation may be
difficult to achieve, especially if Gap's existing processes and systems are not geared
towards such practices.
c) Store Network and Quick Response System: Zara's extensive store network serves as a
vital component of its quick response system. Gap would need to establish a network of
stores that can serve as distribution centers and market intelligence hubs. This would
involve significant capital investment and operational restructuring to align with Zara's
model.
d) Organizational Culture and Flexibility: Zara's success is also attributed to its
entrepreneurial culture and organizational flexibility. Gap would need to foster a similar
culture that encourages innovation, risk-taking, and quick decision-making. Transforming
an existing organizational culture can be a complex and time-consuming process.
e) Brand Image and Customer Perception: Zara has cultivated a distinct brand image and
a reputation for fast fashion and trendiness. Gap, on the other hand, has a different brand
positioning. Replicating Zara's brand perception and capturing the attention of Zara's target
 market would require substantial efforts in repositioning the Gap brand and reshaping
customer perceptions.
f) Change Management and Speed of Execution: Gap's size and existing organizational
structure may hinder its ability to implement rapid changes and respond quickly to market
demands, as Zara does. Adapting to Zara's fast-paced model would require significant
change management efforts and restructuring of processes and systems, which can be
challenging for a large organization.

To conclude, Gap would face substantial difficulties in recreating the resources, capabilities, and
competencies that define Zara. Successfully replicating Zara's fast fashion model would require
significant investments, organizational restructuring, cultural transformation, and a deep
understanding of Zara's core principles. It would be a challenging undertaking for Gap to match
the speed, agility, and customer-centricity that have made Zara a disruptive force in the fashion
industry.