Zara Clothing - Available Strategic Options and Methods of Essay

Zara Clothing - Available Strategic Options and Methods of Implementation - Essay Example The paper describes the key organizational strategy of the company which revolves around responding swiftly to customer demands. Zara identifies trends and delivers products to customers through its proficient value chain model as well as its autonomously planned structure. This model of business has been quite effortlessly maintained; causing the company’s executives to disregard any thoughts of change for the near future. Moreover, one of Zara’s biggest problems is in updating its approaches towards online sales. Upgrading the current system will contribute towards increasing the networking as well as functionality abilities of the fashion house. This will bring about additional improvements to Zara’s operational functions such as improved inventory replenishment and customer demand forecasting. Investing in new technology will provide Zara with the capacity to be a trend-setter in the fashion industry. A new and technologically improved system would permit rea l-time inventory management. This would contribute to the enhancement of the service level and increase the cross-selling functions between stores, thus giving better service to the targeted consumers. Zara’s other major challenge lies in containing its huge maintenance expenses. The main challenge that the firm may have to face in adapting to a technologically improved system would be in purchasing a readymade system or creating it. As the need for the new system is not immediate, creating an in-house system may be the financially responsible option. However, due to the lack of present workers who are skilled in this subject, purchasing the necessary software is the ideal