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Essay on Zara

Project id 1001217
Subject area Biology
Document type Essay
Words 2971
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Q 1. What are the unique features of Zara's business model ? Zara is one of the six retailing chains possessed by Inditex (Industria de Diseilo Textil) of Spain who designs, manufactures, and sells apparel, apparel, and accessories for ladies, men, and kids through Zara and five other chains across the globe. The classic worldwide apparel chain had been characterized as a prototypical instance of a buyer-driven worldwide series, in which profits derived from "specific combinations of high-value study, design, sales, marketing, and financial services that enable retailers, branded marketers, and branded manufacturers to behave as strategic agents in linking overseas factories"' with markets. Apparel production is generally fragmented with individual apparel manufacturing firms employing only a couple of dozen people on average, although globally traded production, in particular, can comprise tiered production chains containing as many as hundreds of firms spread across dozens of nations. About 30% of world production of apparel was exported, with developing nations generating an unusually large share, about one-half, of all exports. Trading firms had traditionally played the primary role in orchestrating the physical flows of apparel out of factories in exporting countries to merchants in importing countries. Irrespective of if they internalized most cross-border purposes, retailers played a dominant role in shaping imports to developed countries: consequently, direct imports by these accounted for half of all apparel imports into West Europe. Retailing actions themselves stayed very localized: the top 10 retailers worldwide operated in a mean of 10 countries in 2000. Against this baseline, apparel retailing was comparative...

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