Zara International: Fashion at the Speed of Light

   The apparel industry is among the top most competitive industry.  The reason being that for companies to survive, it should be ready to be constantly aware of new trend in the industry.  Also, to be able to attract investors, companies should be able to prove that they can cut cost and maximize profit.
   Zara became a leader in the industry through its cutting edge strategy and innovative business model.  Through aggressive adaptation to new trend and understanding of the customers perception, Zara has been able to position itself above it's competitor like Gap and H&M in gaining more market share in the industry.In an article in the Canadian business, by Bryan Borzykowski, wrote that according to Don Huber, lead manager on the Franklin world Growth Fund, that the reason for Zara success lies in it's unique business model.  He added that the company does several things other retailers  don't do.
   Through the years,  it is evident in the success of the company that it has been able to mobilize and motivate highly competent employees and these employees has the responsibility of keeping up with the latest fashion trend.  Also these professionals are responsible that products get to the customers in the shortest amount of time.  The recruitement of highly skilled workers and in combination of having total control from the procurement of raw materials, design, production, distribution and retail which is a form of classical management approach, has given Zara competetive edge in this volitile industry.
   The genius behind Zara business model is not to be involve in the generic way of doing business, but rather to try new approaches or combination of approaches that will best give optimal customer service.  Subsequently, Zara has employ methods from inducing artificial scarcity of their product, thereby having more sells to using advance technology which help to monitor inventory in all their stores all over the world, which in turn help to avoid oversupply or undersupply of their product.
   Given the success of Zara in the apparel industry, it is undoubtedly obvious that they have build into their model an extensive contigency and analytic approach in the running of the business.  In a New York Times article titled A Rival to Gap That Operates Like Dell, David Oliver, a principal at Kurt Salmon Associates, a retailing-industry consulting firm, said of Zara '' The question going forward is: how durable is the model as it gets bigger and goes internationa?''