Q 1.: What is unique about Zara's business model?
Zara has proved to be a maverick of its time it came at a time that the apparel industry was fragmented there was no integration, the costs incurred were enormous it was highly labor-intensive leading to outsourcing to save on costs and the business model prevalent was not proving to be highly successful as compared to the models of other industries. In came Zara and showed that strategic imperatives depended on how a retailer sought to create and sustain competitive advantage through its cross border activities and seamless operations, the power of integration and the importance of sticking to your positioning without adding too many frills. Zara's factories were heavily automated, specialized by garment type and focused on the capital-intensive parts of the production process.
Zara's fantastically integrated supply chain has enabled them to deliver on their positioning and promise to offer affordable, trendy clothes to its......
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