Business Level Strategy Zara

Zara business strategy is good measure. The corporate level strategies of zara are based on doing what they do best and focusing on where they have achieved the greatest efficiency. Corporate and business level strategies.

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Currently the organization has advantage over its competitors and does not face any serious threats from them.

Business level strategy zara. The success story of zara is based upon its business strategy that fostered creativity innovation and flexibility in its business model and that is what differentiated zara from it competitors and provided it with an edge and competitive advantage both at a local as well as at an international level. If a company has to succeed in the long run in a competitive market then it has to be customer centric. Another key element in the business strategy of zara is in house production.

Zara is a strong player in the fashion industry because of its value chain internationalisation and operational strategies. When a company is selecting a supply chain strategy porter s value chain theory indicates that one can be a cost strategy leader a focus strategy leader or a differentiation strategy leader. Zara is pursuing a differentiation strategy focused on a speedy supply chain with a quick response to changes in the market the company is a quick fashion follower putting more emphasis on their vertical integration than on a low cost strategy like wal mart.

For zara to successfully compete with luxury brands it must first identify with customers as being a luxury brand. Zara business model is fast fashion i e. Zara s location strategy might be credited with its success in this regard.

The needs and desires of customers are taken into account so that the company can cater to their needs in the exact manner that they look for ferdows lewis and machuca 2003. One of the corporate level strategies of zara is efficient supply chain which is very critical to meeting the current demands in the fashion industry. The main example of business level strategy is defensive strategy because it used by organizations to compete favorable among its competitors.

Another way to say this is that business level strategy looks at how to win within a market and corporate level strategy looks at what markets you should be in. Roll the inventory over fast this is how zara makes money. It is therefore.

Unlike other fast fashion retailers as well as companies such as nike and apple that outsource from manufacturing companies in developing countries the company owns and operates its own manufacturing facilities. Zara recognizes that they are. Zara s strategy is to project high class fashion from all of its retail locations and to do so right next door to its luxury brand competitors.