MGT 498-Section 006

Zara Mini-Case

1. What value does Zara create for its customers?

Zara provides its customers with fast delivery, as well as unique, trendy pieces of clothing
that customers often cannot find through competitors. With locations in 94 countries, Zara’s
customers come from various fashion backgrounds. In the article it explains that because there is
a value of individuality among the pieces, there is typically a scarce number of pieces in the
retail stores. This keeps customers coming back and keeps Zara at top of mind to the consumer
because they don’t want to miss out on a piece they love. Zara provides individuality, quality,
and a continuous cycle of new, contemporary inventory for customers to shop.

2. How easy or difficult do you think it would be for competitors to imitate Zara’s supply
chain as a capability?
If this were an easy task, I think we would be seeing many more retailors imitate the supply
chain of Zara’s. Their ability to develop a new product and have it selling in stores in a span of
4-5 weeks is a task that many competitors simply do not have the resources to accomplish
successfully. With the operation of their own factories, a dyeing facility, and distribution
locations in several countries, Zara is more capable of delivering this new inventory and keeping
up with it regularly. They are also more capable of observing and implementing fashion trends
across the globe, which is a value of Zara that many customers love.

3. Is getting products to customers as quickly as possible an outcome that you believe would
create value in industries in addition to clothing? If so, which industries and why?
I do believe that getting products to customers as quickly as possible is an outcome that
would create value in industries other than clothing because this is a strength that consumers will
value and appreciate among various services. Especially as generations grow, humans become
more dependent on instant gratification. An example of this could be in the entertainment
industry where significant value could be created by organizations providing consumers with
fresh and new options of movies, TV shows, and podcasts that keep the content refreshing. This
would be a similar system, where customers would be regularly checking up on the
entertainment “inventory” that is updated and added to frequently by the organization.