Innovation in Action: Zara Stores Case Analysis

Suitability of the Zara Model

People are experiencing a lot of difficulties in managing their budgets due to financial restraints. Therefore, they cannot go for high priced items that will cost them more than what they plan for (Kinsley 43). This store has taken advantage of this situation and ensured that it offers products at reasonable prices to attract all classes of consumers. For this reason, it has managed to successfully control the textile industry and that is why it continues to open additional branches and expand the existing ones.

Price is a key factor that determines the demand of a product and this company has ensured that its clients do not miss to buy its products due to financial limitations. This model has propelled this company to success and continues to make it attract clients from all regions in the world (Howard 97). In addition, it has also employed non- price issues that make it a leader in this business. It has ensured that its products are available in different varieties.

Sometimes people want to be distinctive regardless of how much they will spend to get an item that does not resemble the ordinary day’s experience. Therefore, this store ensures it offers a collection of products to satisfy its clients’ needs and continues to invent new designs and modify existing ones to ensure it employs the recent fashions to attract and retain clients (Martins 65).

This approach has been successful in blending customers’ needs with their desire to look classy. It is necessary to explain that this company has strict policies on products’ shelf life and does not keep them on sale for more than four weeks. This regulation ensures its designers are always on toes to think and put their skills to work so that they come up with the latest and unique designs. This company has a reliable and fast communication and transport channel that ensures the management, workers and products are up to date with the happenings around them. Lastly, it has employed village-based production where it has employed people at the low-end levels to assemble its end products (Martins 71). This ensures that it employs the latest technology in producing goods at the local level.

Innovation Strategy

It is necessary to explain that most people are not controlled by prices of items when doing their shopping; however, the quality of a product determines their demand and this means that people should not focus on producing cheap goods and ignore their value (Howard 103). However, it is important to ensure that the products are not very expensive to deter clients from buying them; therefore, their prices should be moderate to ensure consumers do not strain their budgets.

In addition, a good company must always ensure it uses modern technology that is compatible with several aspects of human life (Martins 78). For instance, the use of environmentally friendly ways of production is an important aspect of ensuring that the company does not pollute the environment. This aspect does not affect clients directly but it impacts strongly on how people view a company’s corporate social responsibility. Technology determines how effective people do their activities and thus a company must ensure that its products reflect various aspects of modernity.

Lastly, textile manufacturing is not as easy as most people think; moreover it has been largely associated with outdated traditions and designs (Kinsley 84). However, it is necessary to explain that there is the need to use modern designs and change them often to ensure there is variation.

Zara Home

It is necessary to explain that Zara Home is not different from Zara Stores even though they do not produce similar products. However, this company produces home based products and this makes them similar; therefore, it can use the Zara Store model to improve its production processes and boost sales (Martins 86). The market for home goods is very huge but it requires a lot of attention for producers to get a good share of consumers’ minds.

Zara Home should ensure that it produces affordable products because this will be an eye catcher for most clients. Most people usually think that cheap commodities are not durable and are of low quality; however, this should not deter this company from subsidising its prices to attract customers (Kinsley 83). It should not compromise the price of its products with their qualities since this will have short term benefits and long term losses. There is the need to ensure its products are packed in various quantities of different prizes to ensure they accommodate the financial positions of all clients.

In addition, home goods must meet the needs of the majority of their clients and this means that they must be designed to reflect what consumers want. This means that this company should ensure it keeps modifying its brands, packages, quality and quantities to attract and retain its clients (Kinsley 89). Therefore, if this company adopts the Zara Stores’ model it will succeed even though this may take some time before its fruits are achieved. It is necessary to explain that a good business model can be adopted by different companies and produce impeccable results irrespective of what they produce.

Works Cited

Howard, Linda. The Skills of Competitive Innovation in Modern Businesses. New Jersey: Prentice Hall, 2009. Print.

Kinsley, Robert. Introduction to Business Competition: Becoming Global Giant and Managing the Effects of Technology. New York: McGraw-Hill, 2013. Print.

Martins Cromwell. Innovation and Inventive Business Strategies for Modern Investors. Wiley: New York, 2011. Print.

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