Zara has made a strategic innovation when it starts to play with completely different rules and does not follow a paradigm of what the industry wants the sector to theorganization.
Their model is based on a channel in its entirety, by controlling manufacturing and distribution, along with logistics considered one of the most efficient in the world. Control orders anddeliveries, by implementing just-in-time, is implanted in all units and departments. The control and speed of process, design-manufacturing-distribution, is key to its success.
The company hasdifferentiated approach strategies that make them different from other clothing companies. And that's when we can see how Zara has entered the market with a great market penetration, using a better worldwidedistribution, variety in their product designs and reduce final consumer prices, made this great organization by hitting manufacturing market, as large compared to competition.
This organizationhas developed two integrations: forward and backward. Starting with the first, we see that Zara has a supply of raw materials, which can actively develop their clothing styles, so you do not have to gobuy raw materials for their products, but they are the same in developing it. And forward integration we see as its large portfolio of products and diversity of brands, distribution channels ensuresso you can reach the end consumer without any problems.
Something very important for this organization was the internationalization using two important points in selling "provide wide range ofoptions and the sooner the better". There were two important strategic points that helped the company to differentiate themselves from competitors, and applying these two models on the market positionachieved by being a retailer of stylish clothes and reaching many consumers focus on what each wants.
In conclusion we see how this organization has managed to revolutionize the fashion world, just...