The Global Presence of Zaraa and Inditex in the Fashion Industry
The case study points out to the fact that the organization zaraa as well as inditex has its presence in the global market and the presence of the brands has made the brands a world-wide sensation in the world forum. The world forum has always understood the essence of the brands and the presence can be felt in the fashion industry because of the fact that he organizations have been able to make its mark in the global forum. All the procedures have been made and tested according to the requirements of the global forum and therefore, the brands have made a global presence in the forum of the global marketplace. The situation at the global marketplace is the situation that is best understood by both the brands and therefore, the brands could make a global presence in the world forum since a long period of time. The situation is such that the brands have been able to sustain itself in the global pandemic situation and has managed to remain afloat due to the global approach that it has made and therefore, the situation has been handled by the teams of both the organizations quite efficiently. The case study briefly points out to the various factors that are directly or indirectly responsible for the success or failure of any business of any proportion, in the world. The case study points out to the fact that the system and the essence of the business is directly responsible for the success of zaara and inditex respectively as well as for the other known brands in the business.
The global sourcing strategy of inditex along with the global outsourcing and mixing strategy has been able to deal with the current situation and has been able to deal with the situation in a much better way when compared to the competitors like h&m, though it has a lot number of outlets when compared to inditex (arrigo, 508). The stores of inditex have been able to deal with the present situation of keeping the brand afloat even when the brand was in a situation where it was supposed to compete with brands which were having a lot a greater number of showrooms that its competitors and therefore, the brand inditex had been found to have a global sourcing strategy when compared to the brands (hoang, 5-8).
The global supply chain model consists of several people in the global forum such as the manufacturer, supplier of raw materials and therefore, the suppliers and all the other people who are involved in the global supply chain has been able to deal with the situation of global supply chain management quite efficiently.
The law of comparative advantage state that the organization who is following the law would be able to produce a particular good or service at a lower opportunity cost than when compared to its competitors and following this law allows the organization to sell the goods or services at a price which is low compared to that of its competitors who are present in the market (morales meoqui, 1-2). The marketplace, in this case is considered to be a place where the organization can offer its goods or services and the organization can also earn a huge amount of profit as well as customer base when the organization would be able to sell the products or services at a much lower cost than that of the competitors in the market (alan, 35). The brand inditex has been able to understand this need of the brand at the marketplace and therefore, in spite of having a low number of showrooms compared to the other brands, it has been able to acquire a huge number of customers in the market as compared to the competitors (jain and di andrew wu, 1-3). The competitors have been able to deal with the customer base and therefore, the brand has been able to reach a large number of consumers in the market due to global strategy and a large number of consumers in the long run. (xin, calvin, and wise, 2-3).
Inditex’s Global Sourcing Strategy and Competitive Advantage
Asia represents a universal powerhouse of fashion due to the fact that the products that are available in the asian market, be it raw materials or end products, the pricing of these products are highly low and therefore, the pricing has and can never be challenged in the global forum. The cost of the products in the asian market is comparatively very less when it is compared to its competitors in the world forum and therefore, the competitors have not been able to deal with the low price and best quality products that is found in the asian market. The asian market has been able to take an upper hand when it comes to the costing of the raw materials and that has been able to deal with the overall production cost as well in the long run. The production cost has been taking a toll as that is the concern where the cost is increasing to a huge extent and that is exactly how the brand inditex has been able to deal with the current situation in the long run.
The most important competitor in the market is h&m and the strategy for h&m is very different when compared to the competitors in the market. The strategy of inditex and the strategy of h&m is very different and therefore, the brands have been able to set up their individual strategy in the global market. The brands have been to sustain themselves in the market with the help of their own strategies and therefore, the brand has been able to make a mark in the global market through its strategy in the market.
Sustainability is becoming a key to the global system and therefore, there has been a subsequent change in the ways in which the businesses are reacting to the various phenomenon of life (bergquist, 19-20). The situation at the businesses is such that the businesses are trying to run according to the ways in which the people are reacting to the system and the environment and the changes that are happening in the environment the changes that are happening in the environment in the long run are going to change the way in which the plans are being adopted by the organizations and therefore, there are several ways in which the organizations are trying to access to the ways in which the businesses are trying to run itself in the system (schmidtova, and formanek. 47). The systems that the organizations are taking up in order to sustain itself is going to change the way in which the people are trying to deal with this world and therefore, it is the moral responsibility of the businesses to change the way in which the businesses are dealing with their day-to-day activities and that is only how the business is going to run itself in order to sustain in the long run (schoormann, behrens, and knackstedt. 8-9). Therefore, the organizations that have been the key in the discussion have been able to find out a sustainable solution by finding out a way in which the organization deals with the system in the day-to-day activities in order to sustain itself according to the environment (schoormann, behrens, and knackstedt, 14-15).
Global Supply Chain Management and Efficiency
The online market has been hugely in the system and therefore, there has been immense changes in the global forum in terms of the requirements of the market. The market has been able to deal with the situation and has slowly adapted to the changes in the environment and therefore, there has been an increase in the sales of the online market. The businesses have therefore, gone down in terms of sales (wang, shamim chowdhury, shejun and haizhong, 5-8.). Added to the increase in online transaction, the global pandemic and the subsequent lock downs have restricted the individuals with respect to going out and shop physically. The businesses have taken a toll in terms of transformation of the offline and physical mode of shopping to the online mode of shopping. The online shopping arena has therefore, taken a surge since the onset of global pandemic and the businesses have also changed their way of reaching out to the consumers (sadq, hawre nuraddin, and vian sulaiman, 1-2). The businesses, therefore have to have their own set of methods in terms of online transactions and that only would help them to deal with the system of online transactions in the long run.
Conclusion:
Overall, the system and the methods that the businesses are using, amentioned in the case study are solely for the purpose to sustain themselves in the highly competitive market and that is only how the business is going to deal with the system of online publicity in today’s world. The business can be solely found as the method in which the market is going to synchronize itself and therefore, the business and the market will go hand in hand with the system and the tactics of the markets. The market and their upcoming trends in the system of online shopping. The system is going to change itself according to the present market scenario and that is ultimately going to change the route to success, when it comes to the changes in the patterns of the business. The business is going to change itself in the long run and the business is changing itself slowly, thanks to the online transactions in the marketplace. Therefore, it is always advised that the online transactions should always be taken up sportingly so that the system can be able to heal and change itself according to the current needs of the market.
References:
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