It is very crucial for a firm to have sustainable competitive advantage for long term growth. Resource Based ViewExplaining the ZARA strategies of vertical and horizontal integration through their innovative ideas and as through their integrations the competitive advantageous they are enjoying while beating the competitors. Zara has been able to create competitive advantage through various ways; Zara is the biggest and most internationalized of the six retailers that Inditex claims, that is, Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho.
Zara was found in 1975 by Amancio Ortega and Rosalia Mera. INTRODUCTION
Zara, a clothing retailer which was founded by Amancio Ortega in 1975 in Spain, subsidiary to the parent company of Inditex. Zara’s second competitive advantage is the fact that it manufactures and designs the majority of the attires that it sells in its stores. The theoretical concepts of the resource-based view is analysed and applied on Zara as a real world example. Cost Advantage of Zara 4.1 Cost advantage through Value Chain Analysis of Zara. The brand provides high end fashion at low prices. Zara is the biggest and most internationalized of the six retailers that Inditex claims, that is, Zara, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, and Oysho. Zara releases new designs almost every week, which is a huge deal because this means that it is always up to date with fashion trends and it also means that their customer can really rely on them when it comes to satisfying their own fashion needs. Firstly, I briefly introduced the background of Zara, evaluated their businessAn advantage that organizations has over its rivals, allowing it to produce more prominent deals or margins and/or retain a bigger number of clients than its opposition. Many scholars investigated the competitive advantage of Zara and would like to dig out the reasons of how a company can create such a fortune every year. Many scholars investigated the competitive advantage of Zara and would like to dig out the reasons of how a company can create such a fortune every year. My point here isn't so much about how Zara works, or what it is that gives Zara its competitive advantage. A firms capabilities and internal resources are the main sources of competitive advantageSTRATEGIC ANALYSIS OF ZARA How does it exploit that competitive advantage? Zara has been able to create competitive advantage through various ways; Zara’s Competitive Advantage . in the recent decade. The selected organisation is Zara Fast Fashion, which is analysed with the help of use of RBV towards achievement of sustainable competitive advantage. It is extremely rare to find fashion companies that manufacture as well as design their products. Resource Based ViewExplaining the ZARA strategies of vertical and horizontal integration through their innovative ideas and as through their integrations the competitive advantageous they are enjoying while beating the competitors. Strategic management is illustrated the way they scan the environment (the preferences of customers) as they monitor all the hits and misses and then the designers design new designs using the most efficient way. ZARA has heavily invested into Information Technologies that allow them to to sort and acquire information about their consumers in order to design their products to fit future trends. There can be many types of competitive advantages including the firm 's cost structure, product offerings, distribution network and customer support (Jay Barney 1991). It has 66 outlets in U.K. Zara established a strong distribution network management.