Assignment - Zara CaseQuest Research Paper Example | Topics and Well Written Essays - 1500 words - 1

Assignment - Zara CaseQuest - Research Paper Example The management at the company understands that the industry is dynamic and many factors continue to drive the change including customer needs and supply. However, supply is second to customer demands. The top management holds that the company must provide what the market demands and not vice versa (Bower, 2002). Zara has various opportunities and resources that would help the group meet its goals in the process of satisfying clients. The company maintains close management of with tight running of the process of production. To achieve this, Zara maintains both manufacturing and design processes in-house. The only exception is having strategic partnerships situated next to the head offices. Across Europe, the company keeps more than eighty percent of its production in-house with Spain having the least at fifty because of being close to the headquarters. Furthermore, the company enters into agreements with local manufacturers to strategically chase the clients appearing elusive. The agreements help in timely delivery of products as well as services. The company maintains flexibility by designing and producing more than twelve thousand new products to the market every year (Casadesus-Masanell, 2006). This is in addition to the benefits emanating from proximity. Application of these strategies makes the work of chasing to achieve their targets besides satisfying consumer needs. Value chasers are intangible and tangib le in terms of benefits received by stakeholders. From the tangible perspectives Inditex that owns Zara operates a net margin of slightly more than eleven percentile both in the market capitalization and operational activities. The working capital in terms of its net is healthy running more than one hundred and thirty-three thousand Euros. The exemplary performance in the financial sector demonstrates the prowess of Zara to run business in the industry. Within four years up to the turn of the century, the