Zara's Strategies: Enablers and Drivers for Success Report

This report provides an in-depth analysis of Zara's strategic approach to business, highlighting the enablers and drivers that contribute to its success. It examines how Zara integrates sustainability principles, including the Sustainable Development Goals, into its operations, focusing on areas such ...Read More

Zara
Success Strategies
Enablers or Drivers of Strategy

Enablers and Drivers for success Strategies
Indicator of Strategic
Sustainability
Evidence Description
Incorporation of the
Sustainable Development
Goals
https://
www.notjustalabel.com/
editorial/united-nations-
sustainable-development-
goals-why-fashion-
matters
Sustainable Development Goals can be
successfully implemented and achieved by the
ZARA because it is the industry dealing the
farmers for the fibres hence it can make efforts to
make their life better (Websolutions 2018). Few
SGD’s that are possible to drive success in
ZARA are;
1. No Poverty: Zero Hunger
2. Quality Education
3. Gender Equality
4. Climate change
5. Social development etc.
Sustainability principles http://static.inditex.com/
annual_report_2015/en/
sustainability-strategy/
sustainable-development-
at-inditex.php
https://
www.inditex.com/how-
we-do-business/right-to-
wear
These principles enable ZARA to ficus the main
motives of its organisation that they need to
operate its business to achieve these principles
1. Sustainable development of human
2. Sustainable development of the economy
3. Sustainable development of society and
community
4. Sustainable development of climate and
environment (Thorisdottir &
Johannsdottir 2019).
Formalised stakeholder
engagement
http://static.inditex.com/
annual_report_2016/en/
sustainable-strategy/
stakeholder-relations/
https://www.eoi.es/
blogs/ricardogarro/
2012/02/02/inditex-a-
closer-view-of-the-
company/
ZARA has a wide range of interested
stakeholders but the major focus it made is to
make branding and goodwill instead of profit
(Andriof 2017). These stakeholders are
1. Shareholders
2. Suppliers
3. Clients or partners
4. Employees
5. Society
Sustainable supply chain
process
https://
www.tradegecko.com/
blog/supply-chain-
management/zara-
supply-chain-its-secret-
to-retail-success
https://
link.springer.com/book/
10.1007%2F978-3-319-
12703-3
Zara has a focused eye on the better supply chain
and transportation of the finalised products. The
upper-level management is always busy in doing
the innovation in the supply chain management
and procurement (Niinimäki 2018). The supply
of Zara is very sustainable as it involves
1. JIT Just In Time Production
2. Demand forecasting
3. Lean inventory management
4. Centralised order fulfilment
5. Solid network
6. Sustainable packaging box
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Enablers and Drivers for success Strategies
Focus on innovations https://www.google.com/
search?
q=innovation+strategy+of+
zara&rlz=1C1SQJL_enIN856
IN856&oq=innovation+stra
tegy+of+zara&aqs=chrome.
.69i57j0.12867j0j8&sourcei
d=chrome&ie=UTF-8
Zara is mostly known for its innovative ideas
and strategies it made to introduce a change in
the fashion industry. Operating since 1975 Zara
has modified the fashion industry with its
innovative ideas (Lee 2019). The reason behind
this success of the industry is its flexibility and
unique innovation strategy. For eg.
1. It believes to gather ideas from every
culture
2. If innovate all aspects
3. Manage inventory with unique ideas
Experimentation with
new business models
https://www.destination-
innovation.com/
innovation-lessons-from-
fashion-leader-zara/
https://
brainmates.com.au/
brainrants/zaras-
innovation-mantra/
ZARA is focused on the innovation with
adaption of the change rapidly. Zara design its
strategy to fulfil the customer demand within the
given or short time. It has a strong supplier and
dealer connection so it easily makes the product
available and it manages the inventory based on
its forecasted innovation hence it always fulfil
the demands (Laforet 2016).
Programs to build
employee knowledge and
commitment
http://static.inditex.com/
annual_report_2014/en/
our-priorities/promoting-
team-motivation/
employee-development-
and-growth.php
Zara is responsible to make the human resources
as the best useful resource and it tries to make
the better stability in the life of employees so
they can easily focus on their work and it uses
the communication process to gather the ideas
from the employees (Prajogo 2016).
Flexible workplace
structures
https://www.inditex.com/
our-commitment-to-
people/our-employees
http://www.diva-
portal.org/smash/get/
diva2:541115/
FULLTEXT01.pdf
https://www.indeed.com/
cmp/Zara/reviews?
fcountry=ALL&fjobtitle=Ma
nager
Zara’s organisational structure is a mixture of
flexibility and rigidity, it allows the employees
to relax the stress and tension but demand the
customer satisfactory production (Pal & Gander
2018).
Employee and
community well-being
programs
https://www.inditex.com/
our-commitment-to-
people/supporting-
communities
https://www.zara.com/in/
en/sustainability-social-
action-l1663.html
https://
www.glassdoor.co.nz/
As the attainment of the sustainable
development goals, Zara is committed towards
the development of the society and community
by the implementation of the circularity in the
economy ZARA has opened the door of
employment for the youth living in the
community. It adapts the fashion ideas from the
culture where it operates (Scheibler 2017).
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Enablers and Drivers for success Strategies
Benefits/Zara-New-
Zealand-Benefits-
EI_IE17544.0,4_IL.5,16_IN1
86.htm
Customer satisfaction https://
www.mouthshut.com/
product-reviews/Zara-
reviews-925738426
http://
ledesmafm323zara.blogspo
t.com/2013/05/value-
proposition.html?m=1
Customers are the main stakeholder and their
satisfaction is the real worth or profit as Zara in
his strategies focus the worth making instead of
profit-making. These all strategies that Zara
operate and innovate are focused on customer
satisfaction (Andriof 2017).
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Enablers and Drivers for success Strategies
References
Andriof, J,&WS 2017, 'Unfolding stakeholder engagement.', Unfolding stakeholder thinking,
pp. 19-42.
Laforet, S 2016, 'Effects of organisational culture on organisational innovation performance
in family firms', Journal of Small Business and Enterprise Development, vol 23, no. 2, pp.
379-407.
Lee, C,HR,&SSR 2019, 'Creativity and innovation in the restaurant sector: Supply-side
processes and barriers to implementation.', Tourism Management Perspectives, vol 31, pp.
54-62.
Niinimäki, K 2018, Sustainable fashion in a circular economy, Aalto UniversitY.
Pal, R & Gander, 2018, 'Modelling environmental value: An examination of sustainable
business models within the fashion industry', Journal of cleaner production, vol 184, pp. 251-
263.
Prajogo, DI 2016, ' The strategic fit between innovation strategies and business environment
in delivering business performance.', International Journal of Production Economics, pp.
241-249.
Scheibler, J 2017, 'Circular economy: implications for the Swiss fashion retail industry'.
Thorisdottir, S & Johannsdottir, 2019, 'Sustainability within fashion business models: A
systematic literature review', Sustainability , vol 11, no. 8, p. 2233.
Websolutions 2018, Zara, ASOS and other fashion giants pledge to a circular fashion future,
viewed 4 October 2019, <http://www.climateaction.org/news/zara-asos-and-other-fashion-
giants-pledge-to-a-circular-fashion-future>.
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Enablers and Drivers for success Strategies
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