RE: Zara’s business model and competitive advantages

As Diane Isabelle mentioned in her blog, the clothing company Zara has a unique business model, which provides the company with high profits and increasing sales amidst the euro zone crisis. So what’s so unique about Zara? Of course, Zara segments its market, is heavily consumer oriented, and has excellent marketing all around, but in my opinion, Zara’s model is hard to replicate because the company has carved a sustainable competitive advantage by virtue of its operation excellence. Since, among other things, Zara’s supply chain is so short and efficient, Zara is able to respond to any changes in trends much quicker than its competitors. As well, Zara is able to produce small batches of clothes without fear of not meeting demand, because it can quickly respond to surges in demand. By producing in small but frequent batches, Zara (with the help of its 200 designers) has an immense product line capable of providing customers with unique garments.