What Business Is Zara Essay Example | Topics and Well Written Essays - 1250 words

What Business Is Zara - Essay Example The essay "What Business Is Zara" investigates Zara business model. GAP introduces new line clothing not regularly but approximate once in a year. This is during periods when its sales are high. Sales are high about thirteen weeks a year during the back to school/ work and holiday periods. GAP, Inc does not manufacture its clothes: it is a retailer company sourcing its clothes from various factories. GAP makes its money majorly through sales and partly through return on assets and debt. Its financial performance is given by financial ratios which include; return on sales, leverage ratio, solvency ratio and liquidity ratios. Zara business model is unique and distinct from others because it has taken control of its supply chain independently. It understands the market and its demands. Use of technology; technology has enabled Zara to communicate directly with its production centers and designers. It has also facilitated direct placement of ordr4s by store managers basing on the demands of that region. Understanding customers demand. Zara produces new collections every three weeks and this is done after analysis of the design in most demand by customers through the store managers. Use of personal digital assistance. Store managers use PDAs to place orders as requested by customers. This has facilitated time delivery as it has allowed a customer to even get the product within two days. Being customer based. Zara send group of commercials to different countries in which its stores are located to observe the style.