Al Dar University - MGMT 307: Operations at Zara Case Study Analysis

This case study analyzes the operations management strategies of the fast-fashion retailer Zara. It examines the strategic issues faced by the company, including marketing, political, economic, and legal factors, and how operational management resolves these challenges. The study highlights Zara's steps toward operational excellence, such as vertical integration, logistical trade-offs, and innovative software. It emphasizes the company's strong control over its supply chain. Furthermore, the assignment provides suggestions for maintaining a competitive advantage through operational excellence, including e-commerce, sustainability initiatives, and product extensions. The provided solution demonstrates Zara's approach to supply chain management and its impact on the company's success in the competitive fashion market.

Running head: FAST FASHION
Fast Fashion
Name of the Student
Name of the University
Author Note

1FAST FASHION
Strategic issues through Operations Management at Zara
The Spanish retailer company, Zara has exceptional records of performance in the last
few years. With a well operated and organized supply chain there has been a number of potential
issues and problems the company has been facing that got resolved by the operations
management strategies. Some of the potential issues include in the file of marketing, where Zara
adopted different strategies of marketing and never advertised in the social media. Introduction
of effective marketing campaigns can benefit the business; this issue got resolved by the
operations management. In case of the issues in the field of politics, the foreign investors of Zara
got very sensitive due to the nature of the policies and the labor laws thus affecting the business
(Caro & Martínez-de-Albéniz, 2015). Furthermore, the involvement of media as one of the
pillars of the political system plays a very important role in affecting the economic scenario and
the political issues affecting the company. Besides these, weather issues, legal issues and the
economic issues are some of the major essential factors of Zara that got resolved by the strategy
of operational management.

2FAST FASHION
Steps Leading Towards Operational Excellence at Zara
Zara, the brand is one of the best examples of the innovation of their process. One of the
interesting factors of the brand is that they tend to spend very less finance over the commercials
since they believe it brands recognition with the word of mouth among the customers and their
tags on the bags (Hagman, Segerqvist & Wahlström, 2017). One of the largest and renowned
brands has some of their essential steps towards their operational excellence. These steps
contributed to the excellence and flourish of the business and gain recognition of the brand name
in the competitive market of clothes manufacturer. Apart from the sustainable social view,
environmentally friendly bags and products, Zara follows a strategic approach towards the
operations for distinguishing itself from the rest of the world (Fernie & Sparks, 2014). These are
vertical integration, logistical trade-offs, product replacement cycle, the quality of the product,
strategies of low inventory, increased margins and psychological ruses and the innovative
proprietary software and the continuous flow of design. One of the strengths of Zara is that the
company has a very strong control over the supply chain management.

3FAST FASHION
Figure 1; The operation process of ZARA
Source: (created by author)
The figure above illustrates the detailed strength and the operational process of the brand Zara
towards its excellence.
Suggestions for Zara Fashions for maintenance of Competitive Advantage
through Operational Excellence
Some of the recommended suggestions and strategies for the company, Zara for the
maintenance of the competitive advantages via the operational excellence includes the following.
E-commerce, active wearing and the initiatives of sustainability are some of the best factors that
Zara can introduce. Furthermore, interactive fitting rooms together with additional features of the
uniform identity of the brands, addressing of the increased need and demand for the athletic wear
for a more health-conscious consumer are some of the major recommendations that the company
needs to follow (O'Marah, 2016). Apart from all other recommended strategies, Zara needs to
initiate extension of their brands and increase the offerings of their products that will involve the
creation of new products with the existing class of offerings. This will help Zara in capitalizing
their renowned brand name and benefit from the norms of the equity of core branding features.

4FAST FASHION
Reference
Caro, F., & Martínez-de-Albéniz, V. (2015). Fast fashion: business model overview and research
opportunities. In Retail supply chain management (pp. 237-264). Springer, Boston, MA.
Fernie, J., & Sparks, L. (2014). Logistics and retail management: emerging issues and new
challenges in the retail supply chain. Kogan page publishers.
Hagman, O., Segerqvist, I., & Wahlström, S. (2017). Credibility of Green Marketing in the Fast
Fashion Industry.
O'Marah, K. (2016, March 10). Zara Uses Supply Chain To Win Again. Retrieved from
https://www.forbes.com/sites/kevinomarah/2016/03/09/zara-uses-supply-chain-to-win-
again/