CASE STUDY OF ZARA: A BETTER FASHION BUSINESS MODE
A specific business model illustrates the way an organisation generates its revenue by delivering value to the target customers at an optimal cost. The following section aims to provide a brief overview of the business model utilised by the leading fashion brand Zara by justifying its effectiveness in Zara's success. You can also take Essay Homework Help from experts.
Zara market demand
Zara is considered as a renowned and popular apparel retailer that specialises in fast-fashion product ranges including shoes, clothes, accessories, perfumes, and others. During the fiscal year 2021, Zara has witnessed the highest sales share of 70.67% across the world while compared with other brands including Bershka 7.85%, Pull&bear 6.77%, Stradivarius 6.58%, and others (Smith, 2022). Competitive pricing strategy along with the good quality of products with attractive style maximises the popularity of the mentioned brand across the globe. Focusing on the adoption of innovative and modern technologies can be considered as another strategic approach of Zara that enhances the chance to gain strong customer engagement with the brand creating business opportunities to bring profitability. When students look for essay help from a writing service, they need to see the company recruits qualified writers.
The business model of Zara
“Fast-fashion model” is found to be adopted by Zara that can be considered as one of the primary sources to bring competitive advantages. Adoption of the mentioned business model helps the brand to replenish its respective stores frequently and maximise its chance to cater to the fast-changing fashion demand of the target customers (Pratap, 2019). In the context of the following table, considering the business model canvas (BMC) for Zara, it can be underlined that the value proposition of the brand is found to be focused on the fast-changing fashion demands and trends. Its effective and systematic business models allow the brand to recognise emerging trends and maximise its chance to launch new trending products into the market in less than three weeks. This creates market competitiveness by creating a strong market position in both offline and online distribution channels (Wang, 2018). You can also check for university assignment help.
· Local textiles
· Trend Scouts
· Forecasting and trends
Fast access to the fashion trends at an affordable price
· Maintain transparency with customers
· Offers information on the latest fashion
· Information technology
· Distribution channel
· Zara in-store experience
Information Technology, people, production, distribution
Table 1: BMC of Zara
(Source: Created by the learner)
Benefits of Zara’s business model
Following are the key benefits that the business model adopted by Zara has offered:
● The business model of Zara helps the brand to keep them up-to-date with the fast-changing fashion trends
● The fast-fashion business model helps the brand to offer the best quality of products at an affordable price (Aftab et al. 2018)
● The business model helps Zara to adapt fast-changing market trends quickly creating business competitiveness
The discussion underlined that a strong business model can be considered as one of the key aspects for Zara that maximise its business growth, market competitiveness, and effective brand recognition worldwide. The business model of Zara is effective in terms of bringing new business opportunities and maintaining performance consistency by generating market competitiveness. When students look for help with assignment they expect the writers to be qualified enough to develop their papers.