Zara Business Model Essay

VRIO is a business framework analysis that questions value, rarity, imitability of an organization. The first question is ‘Is the resources available valuable for the firm.The success of a firm heavily depends on how valuable is the resources and how rare it is. We analyse these questions with the models available like business models, CSR, design, IT, Advertising, brand image and HRM.

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It should be mentioned that the global phenomenon of fast fashion taking over the traditional fashion industry was not an incident solely distributed to H&M, but it was a concerted effort by a number of innovative fashion businesses, in which Zara perhaps gained more recognition and credit than that of H&M. Admittedly, H&M was dubbed “global leader” in fast

Its brand and image developed since the opening of their first shop in 1947 adds value and is associated with stylish collections sold at lower prices compared to most of its competitors. The experience and commitment of the Persson family who owns the highest percentage of the organisation is probably the most important value chain H&M possesses as they are always investing in growing and development of the business. H&M stores are strategically located in cities’ best areas and small towns across the world carefully chosen to give them access to a much wider population. The use of IT and continuous upgrading of the system allows the business to operate cost effectively allowing them to achieve their main goals of continuous growth as well as supplying cheaper designer merchandise to all its customers. H&M’s non- hierarchical management style philosophy practiced is another chain value that is competitively advantageous as employees take initiatives at all levels leading to fast decisions and quick reactions essential to fast fashion business. Centralisation of procurement, logistics, Designing and pattern making staff is important for quick reactions to changing trends known to occur in the fashion

Zara’s own brand and business model is equally competent and valuable because it involves fast turnaround times of quality designer clothing from their own manufacturing factories. It 's also pointed out that this enables them to launch new products every week which attracts customers back even though they do not advertise in order to concentrate their revenue on growing and expanding into more countries like