Zara’s Competitive Advantage:

 Product Design:
o The products designed by Inditex’s over 700 designers provides it with the
assortment of around 65000 new designs every year.
o They use various technologies like RFIDs embedded in products to
understand demand and made a collaborative use of “Hard data” and “Soft
data” to ensure the efficient communication flow of information throughout
the company.
o The information flow system established by Inditex makes its manufacturing
& distribution more efficient and less prone to breakdowns.
 Manufacturing & Distribution:
o Inditex established a well responsive supply chain that enabled Zara to be on
the edge.
o It could deliver new merchandise twice in a week to all the stores across the
world.
o Inditex’s manufacturing hack of producing “greige goods”, raw fabrics that
had not yet been dyed or printed, helped them minimize the material cost
and production time.
 Store Network:
o Inditex followed “Oil Stain” pattern for launching in new markets which
enabled them to achieve economies of scale.
o Inditex designed its stores like designer boutiques, and each store had
distinctive aesthetics.