The report gives emphasis on the business activities and operations of Zara. Zara is one of the Spanish accessories and also clothing Retailer Company which was established in 1975. It is known as one of the largest retailers in the world. The products of the company are available at more than 2169 stores globally. It gives a proper evaluation of the profitability of the company and also takes into consideration the revenue in the competitive environment. This report shows the comparison between Zara, Dell and Myer logistics and supply chain management.
The supply chain plays a great role to conduct the activities of the organization in a proper manner. It elaborates that how Zara compete in the competitive environment. Supply chain and logistics management are taken into consideration by Zara to compete in the international market. Also, the trading activities and operational activities of Dell and Myer are discussed.
Zara is a company that deals in clothing and accessories. Also, the dell is considered as one of the biggest technology companies globally. Dell and Zara both are the companies that have a good image in the market. The companies take into consideration effective supply chain and also proper strategies that help to enhance the profitability of the organization. The supply chain of Zara and Dell has been discussed below:
By giving focus on the supply chain it is evaluated that it is different from the other companies. The company brings change in its clothes in every few months so that the customers can be induced to purchase the products in an effective manner. It is important to analyze the demand for the consumers and the companies RFID technology so that the demand for the products can be evaluated. The business model is also taken into consideration to enhance the image of the organization in the international market. The core market of the company is 24 to 35 years old (West et al., 2015).
Dell takes into consideration effective strategies related to supply chain so that the sales and revenue of the organization can be enhanced. The competitors of the dell are suppliers, customers, and corporation. The company also gives focus on maintaining the ethical standards. The firms take into consideration the strategies like direct sales model, supplier integration and also build proper strategies for enhancing growth in the market. Dell has proper supply chain management that enhances the overall performance of the organization (Sakas et al., 2014).
The supply chain of Dell and Zara is unique and different. Dell takes into consideration the horizontal supply chain whereas the Zara considers vertical chain system. It is evaluated that Zara is efficient towards the working pattern and it also controls the production of each garment and clothes. The company also gives focus on taking into consideration effective and different strategies so that the profitability can be enhanced. The company tries to maintain proper control of the activities. By using the supply chain, Zara offers attractive new clothes with latest designs. On the other hand, by giving emphasis on Dell it is seen that the company uses horizontal supply chain management. The company also manufactures various computer products in the market (Hollensen, 2015).
There are many trading and operation activities operate by using the supply chain management. The suppliers are hired by the company so that products can be supplied in proper way globally. Zara is also able to analyze the needs and preferences of the consumers so that the supply chain can be dynamic. The company also maintains proper coordination with a large number of consumers in the international market. Zara and dell take into consideration effective and supply chain management to operate the activities and operations in a proper manner (Block et al., 2015).
The Zara adopt vertical supply chain and also the company has proper control over its suppliers in the international market. It also assists to meet the demand of the customers. On the other hand, Dell sells the product in the market to a large number of customers. It also offers services to the customers so that the consumers can be attracted globally. There are also many risks involved by taking into consideration insecurity and also a shortage of raw material and goods. By giving focus on the recent scenario, the company is not able to offer good quality and services by considering the supply chain system (Pickles et al., 2015).
There are many large stores and warehouses that assist the company to sell the clothes in a proper manner. The company also gives focus on investing the large amount in the stores and warehouses so that the clothes can be supplied in the international market. The large amount is invested by the company on the clothes and accessories offered to the consumers.
By giving focus on Dell, it is seen that the company never invest the amount in the stores and warehouses. The company gives focus on reducing the cost of the suppliers, retail storage and also the warehouse. It is evaluated that dell has approximately 7 to 8 hours of inventory because the policies have not be taken into consideration by the company (Cusumano et al.,2015).
Zara gives emphasis on the production policies and strategies so that the competition level can be minimized. The company also gives focus on the latest trends so that the customers can be attracted towards the products and services (Wheelen and Hunger, 2017). The firm can make proper strategies so that the price of the products can be kept less and also the consumers can avail appropriate prices. To enhance the share of the market the company takes into consideration effective promotional strategies so that the company can maintain a good image in the market. The main motive of the firm is to offer attractive products to the customers.
The company sold the products in many countries and also focuses on enhancing the satisfaction level of the customers. The company also fulfills the requirements and the needs of the consumers. To beat the competitors the company also considers proper strategies, so that the sales can be enhanced in the competitive market (Rothaermel, 2015).
By taking into consideration the Dell Company it is analyzed that to attain the goals and objectives the company focuses on enhancing the share of the market. The strategy used by the dell company is to analyze the needs of the consumers. The computer products are manufactured or introduced in the market by analyzing the demand of the consumers (Russell and Taylor-Iii, 2008). Dell introduces the product in the market at affordable prices so that the customers can easily purchase it. Social media channels are also considered so that the sale and revenue can be increased. It offers many types of information related to the quality of the products. In this way, the company can easily customize the products in the market (Peteraf et al., 2014).
Zara usually stores its product in their warehouses and the distribution is done twice a week in showrooms and its stores. In addition to this, the inventory and stocks are kept to a minimum level in stores. The firm ensures that the quality of the product is maintained at the optimum level and in case any product is not meeting the quality standards, the production of such products is immediately stopped (Ross, 2015).As the firm presence is at the global level, the company ensures that an efficient and dynamic distribution strategy is implemented to distribute its product in the world (Eden and Ackermann, 2013).
Dell distributes its products in the global market through different distribution channels. The company has also made its presence online and products like Personal computers and laptops are now being purchased online. It can be seen that the company uses the B2B business model which maximizes its sale of products (Goetsch and Davis, 2014).
Zara keeps on changing its products every 3 to 4 days in a week and due to this, customers can choose new garments every week. Due to this, the garment products are widely in demand nowadays. Zara has been successful in analyzing, evaluating and identifying the products which are in demand in the global market and been trending amongst the favorites. Taking regular feedbacks and conducting surveys amongst the customers has helped Zara to identify the area of potential growth and improve its services which ultimately attracts more customers. The company maintains an effective and efficient communication channel with its customers to maintain the reciprocity of relationship which also helps to get feedback and suggestions and reduces the customer’s grievances.
Dell has not been able to maintain a proper communication channel with its customers. The strategies implemented by Zara to connect with the customers, like taking feedback and surveys, can be seen lacking in the case of Dell.
Myer is an Australian department store which has its headquarters in Melbourne, Australia. It offers a wide range of retail products like clothing, home wares, food, cosmetics, travel goods etc. to men, women, and children across the world. By giving focus on Zara it is seen that the company divides its market into various segments so that the products can be offered in an effective manner. Zara has enhanced the goodwill in the market by taking into consideration segmentation, targeting, and strategies related to positioning. In the recent scenario, the company is one of the leaders in this sector. Myer does not consider the STP strategies for conducting the operation of the business. Myer gives emphasis on attracting the people towards the products offered in the market. Zara considers the supply chain and logistics management so that the image can be enhanced globally. On the other hand, if Myer is considered, then it is seen that company focuses on the discount strategies so that the profitability can be attained (Hill et al., 2014).
Zara has maintained its image in the market by implementing an effective business model. The company has been able to sustain itself even in this competitive market by using innovative technologies that have competitive advantages for the organization. The innovation of product is the key to make your presence in the international market. The strength of Zara is that it has effective logistics and supply chain management. The company also gives emphasis on the customer-oriented strategies so that the product can be differentiated if the comparison is made with the competitors. To maintain competitive advantage the company has also given focus on maintaining proper sustainability within the organization (Foss and Knudsen, 2013).The reasons are: The competitive advantage of the company is related to innovation and invention so that the company can survive in the competitive environment in a proper manner.
The company also gives focus on the customer-oriented approach so that the many customers can be attracted and also the primary competitive advantage can be attained. Zara also manufactures the products by analyzing the needs and wants of the consumers. If the product that is offered to the consumers does not satisfy the needs then it cannot be possible to attain the profitability in the competitive environment. Zara also manufactures the product by giving focus on the latest designs and trends so that the competitive advantage can be accomplished in the competitive market (Madsen and Walker, 2015).
By giving focus on Zara Company it is seen that the supply chain and logistics management of the company are dynamic and unique if the comparison is made with the companies like Zara and Dell. The strategies and policies used by the Zara are attractive and induce customers to buy the products and services offered by the company. On the other hand, if the focus is given to Dell it is evaluated that company deals with various computer products globally. Myer does not offer satisfactory services to the consumers. So the direct impact is given to overall sales and profitability. Zara offers clothes and garments by evaluating the needs and preferences of the consumers. The growth strategies adopted by the company gives enhancement in the sales of the company (O’Marah, 2016).
Zara also gives emphasis on maintaining proper teamwork so that the queries of the consumers can be resolved and also the satisfaction level can be enhanced. Proper human resource management is also maintained within the organization and also the strategies assist the company to differentiate the products from the other competitors in the market. TH management and also the strategies of Dell and Myer are different from Zara. It can be evaluated that the strategies used by Zara can give enhancement to the profitability of the organization (Peppard and Ward, 2016).
Conclusion and Recommendation
By analyzing the report it is concluded that Zara is well-known brand of clothing, accessories, and shoes globally. The supply chain and logistics management of Zara have been elaborated in the report. The main emphasis is given to three companies Zara, dell, and Myer. In the next phase of the report the contrast between Zara, Dell and Myer are also discussed. It is also evaluated that supply chain and logistics management is essential for the organization so that the activities can be conducted in an effective manner. The supply chain management of Zara is unique. The company offers attractive products in the market. By taking into consideration the recent scenario, it is evaluated that Zara is making a good image in the market. Also with the use of effective strategies the company has accomplished the goals and objectives.
It is recommended that the company should also try to promote the products and services on the online sites so that the sales can be enhanced and also the customers can easily purchase the products and service offered by the company. It is seen that the dell and Myer should also give emphasis on promotional strategies so that the customers can be attracted towards the product and company can enhance the market share globally.
References
Block, J.H., Kohn, K., Miller, D. and Ullrich, K., 2015. Necessity entrepreneurship and competitive strategy. Small Business Economics, 44(1), pp.37-54.
Cusumano, M.A., Kahl, S.J. and Suarez, F.F., 2015. Services, industry evolution, and the competitive strategies of product firms. Strategic management journal, 36(4), pp.559-575.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management. Sage.
Foss, N.J. and Knudsen, C. eds., 2013. Towards a competence theory of the firm (Vol. 2). Routledge.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
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O’Marah, K., 2016. Zara Uses Supply Chain To Win Again, accessed on 8th December 2016 from https://www.forbes.com/sites/kevinomarah/2016/03/09/zara-uses-supply-chain-to-win-again/#3032002b63ae
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Pickles, J., Plank, L., Staritz, C. and Glasmeier, A., 2015. Trade policy and regionalisms in global clothing production networks.
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