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Martirez, Sofia Anne Nicole S.

September 17, 2019


BME1101 SECTION 17

1) Identify the following:


a) What is Zara’s competitive advantage?
 According to Collier, competitive advantage deals with the
companies’ ability to achieve market and have its superiority in
financial over its competitors. Zara as a well-known fast-growing
fashion brand focuses on its style and quality along with flexibility,
speed, and fair value as their competitive advantage. They aim to
provide quality service through understanding and giving their
customers’ needs and expectations. Aside from that, Zara’s
effective and efficient business model is also contributing in their
competitive advantage. Zara’s business includes: Design, Sourcing
and Manufacturing, Distribution, and Retailing.
b) Describe the order qualifiers and order winners.
 The main purpose of an organization is to provide goods and
services of value to customers; which is why it is important to
understand first the customers’ needs, wants, and desires.

Basic customer expectations are generally considered the


minimum performance level required to stay in business ⁠
—called
order qualifiers. For example, a shower and bedsheet are generally
expected by all customers for a hotel room; for an airline,
customers expect to have a clean and safe flight.
Order winners on the other hand are goods and service features
and performance characteristics that differentiate one customer
benefit package from another and win the customer’s business.
These are the surprising quality and features that makes the
customers more pleased because of exceeding their expectations.
A free internet and bath tub can be order winners for a hotel room.
c) List the competitive operational capabilities of Zara in terms of:
 Cost
 Zara produces new styles and fashion trends inspired from luxury
brands in a more affordable price.
 Quality
 Their fabrics are especially from France and Spain. They also have
fabric utilization and as well as final quality check before
packaging.
 Time
 Zara has a in demand production which allows the company to
have a cost defective production through lowering its storage cost.
Zara also operates fast distribution of products through vertical
integration.
 Flexibility
 Zara provides items according to fashion trends, customers’ need,
and store sales. Zara can be considered reactive with its designs as
it lies in the extensive network of shoppers with feedback given
from wide range of people from different cultures and generations.
 Innovation
 Zara produces 1,000 designs per month and 6 collection updates
which continuously provide new designs attracting customers to
visit their shop.
 Sustainability
 Zara addresses the current business needs (trends) to successfully
possess the long-term quality
d) Write a one-sentence commentary about operations strategy and Zara.
 Zara’s successful operation strategy, together with its agile supply
chain strategy as products of its successful business model led Zara
to be the source of its industry-dominating competitive advantage.