Several case studies mention that Zara is capable to produce on a lead time of less than 15 days compared to competitors like Gap which can operate in a lead time of about 3 to 9 months

Several case studies mention that Zara is capable to produce on a lead time of less than 15 days compared to competitors like Gap which can operate in a lead time of about 3 to 9 months (Ghemawat and Nueno, 2006). Speed approaches that Zara follows like “from sheep to shop” makes the retailer nearly 12 times faster than Gap which at the same time just offers 10% compared to what Zara offers. (Heft, 2002) giving the company a competitive advantage within the industry. Considering Coughlan et al., (2006) where mentions that a shopper in London visits Zara stores 17 times a year while other fashion retailers are only visited 4 times a year, we can confirm that the techniques that Zara is using are very effective and have strongly positioned the brand within the industry. Compared to other vertically integrated fashion retailers, Zara’s main factors of success are short lead-times, acquisition of latest technology, manufacture of small batches, Opposite to most competitors that concentrate on outsourcing, Zara produces over 50% of its products by itself. In house manufacturing also increase the company reputation as they are not as vulnerable to labour exploitation criticism as the companies that outsource from outside Europe. In addition, the expertise that the company has on design manufacturing and distribution allows each brand to have an advantage over the rest of the retailers. A very effective capacity management is another point that helps Zara’s success , by manufacturing small batches and even though the company raise output in their factories , the company’s capacities are kept unused. In 2010-2011 Zara went global by implementing it’s online-commerce approach, figures hasn’t been released but by reading different articles the online store is said to be doing very well. As a matter of fact, the internet and social networks have become tools to measure customer satisfaction of all the brands in the Inditex Group. Zara’s web site, has over a million daily visits.Click to see the full text On the other