Zara is a huge company that fits the definition of entrepreneurship. The main aspects of entrepreneurship as defined by economist Joseph Schumpeter is innovation. This includes new products, new production methods, new markets and new forms of organization. Zara increases the wealth of the company through a continuous variety of new innovations. For example, it only needs two weeks to develop a new product and have it available to customers at a variety of locations. This is a huge number compared to other companies within the same industry. They can produce new products in such a short time that they are always ahead of other companies.
Zara also has an expensive yet efficient way of restocking their products. This includes private planes that deliver products twice a week to all locations. In addition Zara produces approximately 11,000 items annually, which is about three times as much as competitors. Their fast and innovative production methods help them increase revenue.
Zara is able to satisfy their customers with their marketing department working closely with their supply chain. This reduces confusion and increases efficiency, explaining why Zara can mimic new celebrity fashion in such speed.
Works Cited:
powerpoint: class 15, supply chains and operations 2, Oct 27 2011
“Zara (retailer).” Wikipedia. Web. 24 Nov. 2011. <http://en.wikipedia.org/wiki/Zara_(retailer)>.