Zara spanish clothing company Essay Example | Topics and Well Written Essays - 500 words

Zara spanish clothing company - Essay Example The above operational characteristic of Zara is considered as one of its major competitive advantages towards its rivals. The firm has also managed to fully avoid outsourcing, a target that has not been achieved by other retailers. In this context, British retailers, like H&M and Benetton, and USA retailers, like Walmart and J.C. Penny, prefer outsourcing all parts of their supply chain, apart from the quality control phase (Ray 2010, p.324). On the other hand, the above retailers seem to have different competitive priorities from Zara. Indeed, these firms focus more on the development of high quantities of clothes, aiming to avoid sending new ranges to their stores on a daily basis, a common practice in Zara (Gourdin 2006). Rather, they set specific time points for sending new ranges to their stores; these ranges will be appropriately aligned with the market demands, in terms of quantity and quality. There are retailers that have tried to minimize the time spent between the producti on line and the store, like Mango, a Spanish retailer, (Leeman 2010); however, still, the time of response to the customers’ needs is more than in Zara. Keeping the standards of their brand name, meaning the characteristics of their products as of their design and quality, is the key competitive priority for retailers in the particular industry. For Zara, responding to the preferences of customers on a continuous basis is the key strategic priority, as reflected in the firm’s supply chain strategy. Currently, Zara is able to launch a new collection quite rapidly; in fact, the average time required for the firm’s new ranges to reach its stores is about 15 days (Rushton and Walker 2007). Moreover, the firm keeps certain of its facilities spare, meaning its trucks and warehouses, so that it is able to respond to emergent market needs without having to wait for completing a pending order (Mangan, Lalwani