Zara's Competitive Advantages Essay - 456 Words.
Thereafter, it develops the organizations unique atmosphere, designates boundaries, which create competitive advantage for competitors difficult to cope with (Furnham and Gunter, 1993). Moreover, to achieve this implementation, companies specifically managers, need to determine what are the stimulations for its employees to be able to improve high performance culture.
This also justifies why Zara should incorporate advertising and should keep developing their fashion lines in order to maintain competitive advantage. Moreover, carrying out e-commerce in advanced countries or regions such as, the Middle East and Turkey will be essential to the company, as it will capture a wide market share ensuring Zara of consumers.
And this has put hindrances in the way of Zara’s obtainment of the competitive advantage. Moreover, a high competitive market in which Zara operates has confined and limited Zara’s market share as well as its high brand switching strategy quite explicitly. Also, higher employee attrition rate is yet another weakness that Zara should overcome.
Sample Essay. The strengths of the company pertain to Zara’s competitive advantage in the market. The retail proposition accounts for 10 to about 76 percent of the sales for Inditex.
Competitive Strategy analysis in order to determine the competitive strategy used by Zara in achieving sustainable competitive advantage and analyse the effectiveness of this strategy. SWOT analysis in order to determine the internal strengths and weaknesses of Zara as well as the opportunities and threats that Zara faces due to forces exist in external environment.
Recognising the debate in the academic world suggests exploring whether application of “hybrid strategy” will help companies in achieving sustainable competitive advantage or not. To do this, Zara UK is chosen since it has the highest contribution to the overall revenues of Inditex, the mother company, which was accounted 65.6% of the whole sales (Inditex Annual Report, 2008).
The centralized distribution facility gives Zara a competitive advantage by reducing the lead-time of their goods. Zara also has an advantage over its competitors due to its low advertising costs. Zara spent 0. 3% of sales on advertising compared to 3-4% as other fashion retailers.