Strategy of Zara Essay Example | Topics and Well Written Essays - 3250 words

Strategy of Zara - Essay Example According to the paper strong financial backing is provided to Zara by the parent firm Inditex. The parent firm has touched revenue of â‚ ¬13.79 billion. The retail chain however holds various trademarks. While talking about trademarks it needs to be mentioned that very recently Zara had defeated Louboutin in France in battle related to the mark of red soles. This helped the high street retailer to boost sales of the shoes.This essay discusses that the exclusive logos and brands are the resources that have helped the company to achieve product differentiation. The communication system also integrates the management, designers, suppliers, manufacturers and customers. Zara also has a very unique inventory model as the company does not hold a large amount of stock at eh stores. The ability of Zara to adapt the rapidly changing trends of the fast fashion industry along with rapid rate of inventory turnover installs a sense of freshness and exclusiveness in the brand. Zara operates thr ough a flat organizational structure and self driven leadership model. The founders of Zara Ortega and Castellano believed that in order to be successful Zara has to respond quickly to the market trends and this only possible if the company has a decentralized decision-making model.  This is why the store managers of the company hold the power to select inventory for respective stores without consulting the head quarters. The main philosophy behind such organizational policy is to save time to support the JIT delivery model of Zara.