Zara Marketing Strategy

1230 Words5 Pages
Sourcing relevant articles was crucial for me before commencing my theory review, as there are a number of articles already available for discussing Inditex’s marketing orientation, marketing strategies and Inditex’s Supply Chain Management. It is important to look at how these various authors look at these aspects and what way they characterize them. Carmen de la Cruz Iglesias when examining his report on market orientated supply chain it describes how Zara’s unique business model/market orientated approach affects its vertically integrated value chain. Vertical integration can be a significant influence on company performance. It allows the company to operate on many levels within the one boundary as opposed to sourcing. When a firm like…show more content…
Inditex make sure they are involved in all aspects of the fashion process. Design, manufacture, logistics and distribution to its own stores with a strong focus on customers in all business areas (market orientation). We must raise the question as to how Inditex still succeed when Europe’s entire industry is believed to be under threat from China? (The Economist 2004). Through vertical integration, Just in time production and delivery and sales these factors ensure a smooth running organisation for Inditex. According to the Economist there is an estimated 300 designers that work in the organisations head office in La Coruna, Galicia. Managers are in regular contact with store managers to determine the best selling items. As part of Inditex’s market orientation they make sure their main ingredient is their customer. They gather and collect their new ideas and only develop these new styles if they are 100% sure there is a demand for this particular…show more content…
However, sometimes it is necessary to have a combination of both. This is known as the Hybrid strategy. The hybrid supply chain strategy is a new type of competitive advantage. Many organisations such as Inditex have realised the importance of cost leadership and differentiation strategies in order for companies to obtain a competitive edge. For a firm to outperform its rivals it needs to make a choice between cost or differentiation strategy in order to avoid “The inherent contradictions of different strategies” (Porter, 1996 p 67). Nonetheless this is not the case for many large organisations, many companies like Inditex have managed to get a balance of both strategies within their company. Inditex take a cost strategy approach to allow its value chain to function in the most efficient way possible, making sure they still achieve low prices without jeopardizing the quality of their products. Furthermore, they use the differentiation strategy to paint a picture to their customers that their product and services are unique than any other competitor out
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