Competitive Priorities And Key Succes Factors Of Zara Enterprise

COMPETITIVE PRIORITIES AND KEY SUCCESS FACTORS

COMPETITIVE PRIORITIES
Competitive priorities are the group of objectives that companies should determine when competing in the market. In theseterms, Zara’s competitive priority is to offer good quality fashion for low prices at the right moment. For that, the company tries to maximise its strengths and minimise its weaknesses, while takingadvantage of the opportunities and opposing the threats
In order to study Zara’s strategy and understand its success in the world we take a look the SWOT analysis, which is a tool used to understandthe strategy of a firm.
In one hand, we can have the internal factor analysis, with the strengths and the weaknesses, and in the other one we have the external factor analysis with the opportunitiesand threats.
INTERNAL FACTOR ANALYSIS | EXTERNAL FACTOR ANALYSIS |
Strengths | Opportunities |
* Fast delivery of new products. * Design and trend. * Value chain management. | *Potential global markets. * Online market. |
Weaknesses | Threats |
* Lack of advertisements | * Local competitors. * Global competitors. |

KEY SUCCESS FACTORS
Another effective way to knowZara’s strategy is to identify the key success factors that explain why it is so competitive and efficient on the global market.
Zara concentrates on three winning formulas which are the first threeones.
Short lead times
By focussing on shorter response times, the company ensures that its stores are able to carry clothes that consumers want at that time. Zara can move from identifying a trendto having clothes in its stores within 30 days. In comparison, most retailers work on timetables of 4-12 months.
Lower quantities
By reducing the quantity manufactured in each style, Zara not onlyreduces its exposure but also creates an artificial scarcity. As happens with all fashionable things, the less its availability, the more desirable it becomes.
More styles
Instead of more...