Competitive Environment Interpretation for Zara

Zara founded in 1975 is seen to be originated by “Amancio Ortega Gaona”. Some of the chief stores of the company is depicted to be dealing with variety of products which are required for the manufacturing of the different products at the outlet. This was once identified as cancelled orders for the lingerie and women’s night wear. This particular dealing is further based on the strong foundation for creating the links among the retail divisions which is at the end of the manufacturer. The importance of Zara is considered on the SCM strategy which is associated to the demand of the customers and product (Christopher 2016).

The suggestion on the competitive analysis and the sustainability is seen to be based on the number of factors which are seen to be depicted with the five forces analysis of the company. The detailed analysis of the study has been able to reveal a tough competition with brands such as H&M, Benetton and GAP. As per the findings of 2008, there was a significant contribution by Inditex which shows that Zara was able to establish itself as one of the top fashion retailers. The deteriorating economic situation has been able to contribute to the changing global perspective for taking the decision of the company. In the present times, the company is recognized to be having relatively shorter lifespan which was unstable and not able to contribute to the glory. The worsening economic situation has been seen to be changing the global perspective of decisions for the company (Qrunfleh and Tarafdar 2014).

The logistics management of Zara is depicted in terms of deployment of vertical integration and Just in time operations. It needs to be also depicted that the technology implementation of the company has been discerned to be considered with number of factors which has led to its success. The collaboration for the company is identified with strategic use of the organizational resources along with the core competencies which has significantly underwritten to the accomplishment of Zara (Chopra and Sodhi 2014).

The study has incorporated the strategic tools for the application for SC, customer value, Logistics management and competitive management. The theoretical framework of the study needs to be discerned with the JIT manufacturing and pattern of supply chain which is often depicted with the various types of the important factors such as knowledge management, modernization, organizational culture and education.  The adoption of the business strategy by Zara is also compared with Dell and Myers (Fernie and Sparks 2014).

Comparison of Logistics Management for Dell and Zara

Zara and Dell are depicted to be consisted with the performance of the business strategies. It needs to be also seen that the company is dealing with number of issues which are often depicted as per the transactions associated to apparels and the other being manufacturing of the computers.

The consideration of the SC of the Dell has been seen to be consistent with the supplier, consumer and company. In the first stage the customers are seen to be placing their orders, this stage is followed by the procurement strategy by Dell from the suppliers and performing the immediate assembly of the final stage of the products with the supply to the customers (Stevens and Johnson 2016).

The different types of the supply chain activities maintained by Zara is considered to be dissimilar to one another. Some of the main form of thee depictions of the supply chain management of the Zara is considered to be dissimilar with one another. Some of the important aspects of the SC of the Zara is often considered with SC management strategy, distribution points and SC functions (Chae 2015).

The given case study of Zara is seen to be one of the fastest growing among the apparel companies in the world. The SC is considered as the key to the success of the company which is particularly depicted as per speed and maintaining lower level of inventory in compared to its competitors. The designers at the company has stayed closely with the latest fashion designs and trends and manufacturing of the new products quickly. This is seen to be done in the same facility within an extremely short time frame and also minimizing the delays and ensuring maximum interaction with colleagues. The observers have been further able to describe that Zara model of the fast fashion ensures that the buyers did not have to wait for long duration for latest fashions (Afolayan, White and Mason-Jones 2016). Post manufacturing of the products they are seen to be shipped to the different stores as per fixed distribution schedule. In most of the cases the managers are seen to be applicable for using handheld electronic devices for posting real time orders from the different types of the distribution center. This is seen to be organized twice in every week followed with deliveries as per the fixed schedule. This has allowed Zara for issuing of new designs in an extremely short time span. In addition to this, some of the other benefits is identified with horizontal SC which may be depicted with minimum number of errands identified with the assembly line. On the other hand, Dell is required to synchronize with several number of procedures which are relevant to trace the necessary changes for making the process even simpler. Booth is considered to be applicable pertaining to the organization (Farahani et al. 2014).

• Suppliers

SC of Dell

The different types of the considerations for vertical supply chain integration is particularly evident with charge over the suppliers. Dell is also seen to be in control of the process of the supply chain with a total of 15 suppliers. This comprising of supplementary than 85% of the service. Despite of such a situation the number of suppliers, precision and speed of the SC of Dell is depicted as the chief concern to provide service to the clients. The significant risk factors are often traced with the delay pertaining to the delivery process. This is evident with 95% of the suppliers situated close to the manufacturing locations (Breen et al. 2015).   

• Production philosophy  

The strategy by Zara is identified to be focusing on introducing new products and designs and at the same time launching them very quickly. The has emphasized on the application of more styles of business with wide variety of choices.  It needs to be also discerned the company has launched the products only in the showrooms. These stores are seen to be responsible for the receiving of the new products. This particular strategy is further seen to eb applicable to exclusive availability of the products and the sold-out stocks which generates and curiosity among the customers and launching of products are of high demand. The different types of the other strategy pertaining to the lower quantity is often traced with limited amount of supply equal to the purchase compulsion. This is observed with Zara not advertising the products as brand image (Kozlenkova et al. 2015). The targeted customer is identified with the actual products along with the expectation of the customers. As the products are seen to be limited in nature, the customers are seen to frequently check for the frequency of new arrivals.   In most cases the clothes are of high demand derived by regional sales. For instance, the Eastern countries has been identified with an increased and demand for the summer apparels pertaining to the tropical climate. On the other hand, in the European countries, the demand for the winter products are extremely high pertaining to the cold climate for the entire year. Europe being known as the fashion capital of the world, it is able to market its products in several types of other regions especially in Asia. These philosophies associated to the production has served the purpose for influencing the taste and preference of the customers. Dell has been considered to be using theory for ordering the products (Perry, Fernie and Woods 2018).

Supply Chain of Zara

On the contrary, Dell has followed the order strategy. This strategy is evident with serving to the customers in a short period of time. In this time, core competencies are seen to be leveraged with value chain metrics. Dell has applied the strategy of customization of the products which are often seen to be related to the various types of the strategies which allow easy customization (Ayers and Odegaard 2017).

• Storage

It needs to be seen that Dell has been acknowledged with a low inventory with no additional cost on the warehouse. The company is depicted to be having 7 hours inventory instead of 10. The various types of the other related costs are seen to be based on the factors which are often identified with direct pickup, cutting costs, warehouse, direct delivery and supplier storage. Dell has not incorporated this strategy based on the inventory policy. On the contrary, total number of products in the warehouse of Zara is seen with effective circulation (Usui, Kotabe and Murray 2017).

• Distribution

The different types of the concerns of the indirect distribution for Dell is often traced with number of the assimilators which are associated to suppliers, end customers and vendors.  The B2B model of Dell has accounted for 90% of the orders pertaining to the suppliers. Dell is seen to consider the online orders for the products like PC and laptops. This identified between several number of stages considered with the added time and cost. The company is also depicted to be directly associated to its clienteles and subsequent cost of Dell (Yang, Qi and Li 2015).

The following of the distribution strategy for the products related to Zara is often depicted with the manufacturing sites in Spain through Zara Logistics and Corunna Depot. The associated inventories and are not seen to stock or distribute thee stores of the company. Furthermore, the overseas distribution of the company is often depicted as per inventory cost associated to the logistics cost and other respective cost at the store. Additionally, the commercial manager is also accountable for passing of orders in the logistics department and for handling of additional stock. The stores are depicted to use the appropriate trade for the sales and accuracy of the models. This has provided various level of priority to the orders of the suppliers. In case the products are not seen to be selling in the market then the production needs to be immediately stopped in the market. This is further implied with the number of other considerations required for managing and storing of inventory. This was essential for acting as per the preference of the customers (Brandon?Jones et al. 2014).

• Communication

Important aspects of difference

The introduction of different types of the new collections and designs are seen to be conducive for considering updated weekly and showcased in the stores. This is particularly relevant to decide whether product is required to go through new changes or designs. The specific message is not only considered to be fast but also depicted as a cost-efficient process. The important aspects of the weakness in the overall supply process of Zara has been depicted as per the various types of the considerations for following market skimming strategy (MacCarthy et al. 2016).

The comparison of Zara with Myer is depicted with segmentation of the market which is often inferred with demographic and psychographic lines of customer. The allocation of the users pertaining to the various types of the products is seen with demographic positions of product. Zara has been able to consider itself as one of the pioneers in the fashion industry by offering money value. The store concept of Myer has particular seen to be ambiguous with the target market which is general in nature. The main target of Zara group for Zara has been seen to be ranging between the age group of 20-35 year of the young fashion. The significant focus of Myer is often depicted in terms of the departmental store which is considered to be unsatisfactory with the customer service (Aftab, Yuanjian, Kabir and Barua 2018).

The important focus of the company is seen with the various impacts of the strategic SCM concept. This is often considered with main source of the customer satisfaction and competitive advantage. The new model of the SCM has been further inferred with handling of physical products and information by following up with both the upstream and downstream customers for maximizing the value (Chu 2016).

The leading lean management strategy adopted by Japan The Just in Time (JIT) is associated to the monitoring inventory. This is particular techniques has been evident with reducing defects, improving time taken for production and eliminating holding costs. In the recent times this strategy is applied with the manufacturing of the different units along with the clean thinking strategy (Eckstein et al. 2015).

In the present times the World Retail Congress has been identified Zara to be named as “International Retailer of the Year”. This award was given to the company with the maximum score provided to the stock market index. This is essential for proceeding with socially responsible investment. The importance of the competitive advantage is particularly driven by the market demand. The development of the new product by Zara along with the innovations is often seen to be recognized with the leadership in the service. The strength of the suppliers is often traced as vital to the ideology in the modern business (Distelhorst, Hainmueller and Locke 2016).

Conclusion

It may be concluded that the supplier analysis is often seen with in depth understanding of the Online value chain. The interpretation pertaining to logistics management has been able to focus on the technology of the customer. This is often inferred with the customer centric services and vertical integration. The key success factors of the company were depicted to be performed with Inditex. The additional inputs of the collaboration strategy were considered with the supply chain information, incentive capacity, knowledge management and achievement of the organization. The mindset of the Zara’s strategy was considered in terms of the client centric approach which will help in attaining a competitive advantage for the company. Some of the other evaluations of the study has depicted that Zara and Dell are consistent with their performance in performance the different types of the business strategies. It needs to be also seen that the company is dealing with number of issues which are often depicted as per the transactions associated to apparels and the other being manufacturing of the computers. Moreover, distribution strategy for the products related to Zara is often depicted with the manufacturing sites in Spain through Zara Logistics and Corunna Depot. The associated inventories and are not seen to stock or distribute thee stores of the company. Furthermore, the overseas distribution of the company is often depicted as per inventory cost associated to the logistics cost and other respective cost at the store.

References

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