Inditex is a retailer from Spain dealing in apparel. Its chain of ZARA has a quick response systemthat have been contributing to ZARA’s success. The adjustment to the latest trends is continuous and not planned. The success of ZARA has led Inditex to expand its operations in 39 countries. This expansion makes it among the greatest global retailers. However, the company faces several questions regarding its future prospects.
1. What is the value proposition that Zara offers to its customers? How does its value proposition differ from that its competitors?
2. How specifically do the distinctive features of Zara’s supply chain enable it achieve that value proposition?
3. How does Zara’s customer’s willingness to pay compare to that of its main competitors? What about its costs? Does Zara have a competitive advantage?
4. If so, how sustainable is Zara’s competitive advantage relative to the kinds of advantages pursued by other clothing retailers?
5. What implications does Zara’s value proposition and business model have on its future growth prospects?
6. Five Forces Framework?