Zara Case Study Coursework Example | Topics and Well Written Essays - 1000 words

Zara Case Study - Coursework Example However, each chain operates independently and is responsible for its own strategy, product design, sourcing and manufacturing, distribution, image, personnel, and financial results. Zara, which contributes around 80 per cent of group sales (Grant 2005, p.398), is by far the largest, most profitable, and most internationalized of the chains. Its stores can now be found in the most important shopping districts of more than 400 cities in Europe,  the Americas, Asia and Africa. With year-on-year sales increasing at around 25% over the last 5 years, it has become one of the world’s fastest growing retailers (University of Cambridge Institute for Manufacturing). The global apparel market is a consumer-driven industry (Criag, Jones & Nieto, 2004) in which profits derived from "unique combinations of high-value research, design, sales, marketing, and financial services that allow retailers, branded marketers, and branded manufacturers to act as strategic brokers in linking overseas factories" with markets (Collins 2003, p.44). Zaras business model can be broken down into three basic components: concept, capabilities, and value drivers. Zaras fundamental concept is to maintain design, production, and distribution processes that will enable Zara to respond quickly to shifts in consumer demands and tastes. The main business tactics of the company in context of its business model is:- At the heart of Zaras success is a vertically integrated business model spanning design, just-in-time production, marketing and sales.