ipl-logo

Case Study Analysis: Zara Fast Fashion

1715 Words7 Pages

Resource based view is the tool that is used in order to evaluate the resources that are important for the organisation to make their performance effective. It is regarded as a significant approach that is used by the organisation towards attainment of competitive advantage. The aim of this paper is to evaluate the resource based view literature and then applying the knowledge on the evaluation of a case study organisation. The selected organisation is Zara Fast Fashion, which is analysed with the help of use of RBV towards achievement of sustainable competitive advantage. The theoretical concepts of the resource-based view is analysed and applied on Zara as a real world example.
Resource Based View Literature
Finney et al (2008) stated that …show more content…

For that reason, one of the world’s leading retail organisation Zara particularly focus on their organisational resources in order to get the competitive advantage over their competitors. Some of the key organisational resources of Zara are demonstrated below:
Market-oriented Strategy
However, in the retail industry the competition is very high that is why the customer is considered as a king for them and they have to make them loyal as much as they can for the reason that they will not move to other brands quickly. Moreover, by focussing on customer‘s requirement and likings, reinforced by its operational approaches and Zara shows their assurance towards their precious clients. For that reason the customers of Zara‘s are quite loyal that help them to reach better position in the market (Finney, et al., 2008).
Staff-Education
It is found that the top officials of Zara are quite keen and focussing on customer service; therefore, the basic requirement to train their employees is one of their topmost importance. However, it is important from the prospect of Zara to train provide adequate training to their employees that would help them to enhance their overall productivity and efficiency to the utmost level (Lockett, et al., …show more content…

For that reason, the top officials of Zara consider this problem at the time of formulating their strategy that will certainly bring encouraging retort from the society regarding their products (Peng, 2008).
Production strategy
However, due to the increasing competition, Zara applies one of the most advanced strategies that support them to execute their paper plan practically and get the possible competitive advantage over their competitors. It is noted that Zara have team of experts that are able to assess the quality of raw material that help them to take quick action before proceeding it further and it will ultimately assist them to minimise their cost and lead time to some extent (Lockett, et al., 2009).
Value chain
Furthermore, the Zara‘s global value chain varies from its competitors and it is totally matchless for the reason that their lead time is just about two weeks that is quite encouraging for them to compete with their competitors viably. With the help of effective value chain, it helps them to create new and innovative designs in just two weeks (Finney, et al.,

Show More
Related
253 Words | 2 Pages

In the review of the corporate level strategy, we can see many different competitive advantages branching from their use of corporate diversification and vertical integration. Going deeper into those strategies the three elements that allow for a competitive advantage for The Kroger Co. include operating into different markets, having a successful customer reward program, and by having many different locations nationwide under many different brand names. The VRIO analysis found that all three of these give Kroger’s a sustainable competitive advantage by being valuable, rare, costly to imitate and having the right organization structure business wide. In the review of the business level strategy, there were just as many different competitive

Read More
939 Words | 4 Pages

HR Practices of Primark Primark is clothing retailer from Ireland which has operations in Austria, Belgium, France, Germany, Ireland, Portugal, Spain, Netherlands, United Kingdom and soon the United States. The company was founded and has its headquarters in Dublin, Ireland. It has around 51,250 employees worldwide as per the latest estimates. HR Management in the 21st Century: Challenges for the Future Recruitment and development: One of the most important challenges facing global organizations in the 21st century is building the ability to attract, recruit and retain the best talents amidst huge competition with competing organizations. In order to do so the company must create an environment where everybody enjoys working and using their

Read More
880 Words | 4 Pages

The management at Zappos attracts customers through exceptional service that has created a “WOW” philosophy and embedded it within the fabric and culture of the company. Zappos has several competitive dimensions in which they compete with other online retailers in the market. The company has always maintained its sales growth rate on the long-term basis at a certain output level. Therefore, the competitive advantages of Zappos have always been sustainable. The corporate culture of the company is nurtured and developed by its management team.

Read More
1718 Words | 7 Pages

Resources and Capabilities VRIO Framework V R I O Competitive Implication Strong corporate culture + + + + Sustainable competitive advantage Strong investment in R&D + + + + Temporary competitive advantage Outstanding customer service + + + + Sustainable competitive advantage

Read More
1596 Words | 7 Pages

On the other hand the fact that Zara produces the remaining 40% internally, is a strong asset, providing better control, and short lead-times. Finally the fact that Zara owns 450 workshops were garments are to be sewed is a major asset ensuring quality. Another important asset in terms of production, is the technologies involved, for instance the cutting machines, to minimize waste (Ferdows & co. 2014 p9), used in combination with the last-final hand-made sewing. The ease of the connection between the production center and the distribution center is also an important time-saver element, and therefore

Read More
3756 Words | 16 Pages

Resource base view can be considered as an economic tool that is used to determine the strategic resources that are available to a firm. These can be created as a competitive advantage later. When considering about the Zara’s product development strategy, one resource base decision is their designing function. The company has organized their designing function in a way that it will contribute a lot to come up with new trends for the organizations. One is that they are highly in alert of the fashion market, trade fairs, magazines etc.

Read More
3035 Words | 13 Pages

The value chain equates to the internal activities that a company employs in transforming its inputs to outputs; this helps with the improvement of activities, helping the company to achieve competitive advantage. In the analysis of H&M’s organizational capabilities the value chain analysis would show that with viewing the internal activities; this analysis would show where the company’s competitive advantages as well as disadvantages lies. This analysis would then depict the company’s core competencies. When a company is said to be competing through its cost advantage; it would most likely try to carry out its internal activities at a much lower cost than its competition would want to.

Read More
3253 Words | 14 Pages

For the purpose of this paper, Zara has been chosen

Read More
1007 Words | 5 Pages

Employees with current skills and expertise are generally more potential for the growth of business. To satisfy the actual demands of diverse customers within a freshly opened up store on completely new area demands apparent perception of the consumer user profile for the reason that spot to pick the actual share. The training practice facilitates staff to use their occupations efficiently according to correct information, skill, comprehending and sources. Workers distinguish spaces among their information and ability prior to starting training and advancement practice. Q.3

Read More
777 Words | 4 Pages

In order for the company to be successful it must be helpful from any kind of sectors in the company even if it is from the employee himself, so EGY puppy have a regular training program for those who need it especially for the sales department because it is the department that is responsible for communicating the customers into the shop so whenever there are new products there are also some main important sessions that show the employees the way of dealing with this product, the ingredients and all the needed material that is for the sales departments there is also a theatrical training and on the job training whether it's for sales or any other kind of departments. A lot of companies fire a lot of employees that work for them some are fired because they deserve and some fire for some trifle unreasonable thing but EGY puppy are not convinced of following this way they actually prefer much more to enhance their employees because they believe in a concept that is to use all their resources to help them and they also believe in a different concept that they believe in that they should never fire an employee before using any outside or inside resources to help

Read More
1331 Words | 6 Pages

Firstly, the Boston Consulting Group (BCG) matrix that concentrate the market position of different products. Secondly, the experience curve and the Profit Impact of Market Strategies model which identified a number of strategic variables. Furthermore, competitive advantages model (Porter, 1985) which focus on five different forces in environment of organization, but suit with only stable market. Generic strategy was developed strategies under this school, especially it can identify position in the market. Advantages: -Provide content in a systematic way to the existing way of looking at strategy -Particularly useful in early stage of strategy development, when date is analyzed -This school emphasis on analysis and calculation can be a very strong support to the strategy development process -This strategy suit with big businesses or organization which have ability for operate effective market research in the environment

Read More
1051 Words | 5 Pages

Introduction The following strategic analysis report was carried out for Giant Hypermarket in Malaysia. Giant Hypermarket also popularly known as “Giant” is a subsidiary of Dairy Farm International. The objectives of the study is to advise the Board of Directors into a possibility to revisit and redesign the current business strategy based on the blue ocean strategy (Kim and Mauborgne, 2005) to provide value based innovation via cost reduction with increased value for buyers and to ensure sustainable business operation in Malaysia. Additionally, the analysis also includes the possibility of developing a global strategy for Giant.

Read More
1008 Words | 5 Pages

But with proper planning, working with applicable or fitted spectrum learning levels and team work among the employees with one goal, the Organizational Development can be effectively implemented through the defined, achievable and measurable goals and objectives of the business. Since change is inevitable and constant, good leadership within the organization should also consider. The proper training needs can be assess, work advancement opportunities, developed skills and knowledge can be given by the management after accurately assessing its employees from top to bottom, as well as its operational system as a whole.

Read More
1741 Words | 7 Pages

In terms of differentiation, ZARA’s “fast fashion” philosophy is unique, which create demands and lead the trend in the garment market.   They respond very quickly to the demands of target customers and focus on young fashion.   In production, they design quickly, production quickly and update quickly.

Read More
765 Words | 4 Pages

(BARNAT, "Concurrent Control") As fashion trends tend to change every now and then, Zara could use this control to work on latest trends and future trends. This to ensure that employee work activities produce the correct results without any major wastage and unacceptable services. This also allows Zara to be up to date with its fashion knowledge and also sustain its position in the

Read More

More about Case Study Analysis: Zara Fast Fashion

Related Topics

Open Document