The business model that sets Zara apart from other clothing retailers is how rapidly the company changes stocks and releases new product lineups. The company averages 12-16 collections annually which equates to more than one lineup a month. Due to stock being limited and the rapid production Zara brings forth, their items are viewed as exclusive promoting further business. Their customers are happy knowing that their specific article of clothing is more “rare” due to only having an average of a two-week window to purchase the clothing. The company specifically targets current trends and has them in the store within 30 days. This maintains the brand’s uniqueness and relativity in fashion.
Zara’s manufacturing supply chain is a shorter process than what M&S uses. For example, occasionally M&S has products shipped to Asia to be created, then back to the UK for packaging and labeling, and back once again to Asia to be sold in their retail stores. This increases production costs and time, placing them at a disadvantage to Zara. Zara uses two main centers for their products, a supply center in Beijing and it’s manufacturing center located in Spain. M&S also creates collections in...
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...n along with flexible supplier operations. They utilize technology to keep a competitive advantage in the industry and stay on top of trends. Zara utilizes a lean production and operation strategy to eliminate waste and maximize profit. M&S does not have a clear focus on their target demographic and is spread too thin trying to appeal to so many age ranges. Their goals for improving operations and gaining market share are ambitious but seem to lack an acute focus needed to make subtle and necessary improvements. M&S has been in the business for a long time and seemed to become complacent with their share of the market and profit margins which helped lead to their major profit and market share losses. They became focused on gaining those back but not with how to move past those and improve on and transform their brand into something that could stand the test of time.
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