The analytics, companies in the design industry will be

The major
challenged is going to come from the insurgency in Analytics. With the offer
assistance of analytics, companies in the design industry will be able to
foresee the in tastes of the clients in progress and can use it when the
opportunity comes. Furthermore, this will be simpler for competitors to imitate
Zara s trade show, which may lead to the decrease in competitive advantage that
Zara has over its competitors. Hence Zara needs to constantly evolve and change
its strategy with changing time. Third, with the rise of economies like India
and China, the market is going to shift from Europe to Asia. So Zara might need
to change its production strategy to avail the cost competitiveness these
economies provide.

The emergence of analytics and artificial
intelligence, companies will be able to predict the change in fashion tastes of
customers in different parts of the world. This may lead to disruption in
supply chain strategy. To take advantage of cost competitiveness, companies
might need to shift their production facilities to India, China or other Asian
countries. Hence in future companies may not need to follow Zara’s supply chain
strategy. As of now, it’s difficult to replicate the supply chain capability of
Zara because of such short turn around time.

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In most of the industry, it’s a key metric to
provide customers what they want and provide it quickly. In Zara, there is
always a first mover advantage. The other industries that may benefit from this
strategy are Automobile industry, Online retail Industry, food and beverage
industry etc.

Zara produces designs, which are scarce. They
don’t sell clothes of the same design to multiple customers. This gives the
customer sense of individuality in owning the apparel. Again Zara keeps its
stock up to date with the latest fashion. This caters the customers to their
needs and makes them loyal to the brand. Zara may outsource its production. Its
core capabilities are creating designs rapidly with changing market. So it can
focus on designing the clothes and outsource its production, especially in
Asian markets.

The major challenged is going to come from the
insurgency in Analytics. With the offer assistance of analytics, companies in
the design industry will be able to foresee the in tastes of the clients in
progress and can use it when the opportunity comes. Furthermore, this will be
simpler for competitors to imitate Zara s trade show, which may lead to the
decrease in competitive advantage that Zara has over its competitors.