Is the Zara model sustainable? What would you do to preserve their edge over the

Question

Is the Zara model sustainable? What would you do to preserve their edge over the next 5-10 years, given that many other players are now looking to follow their example? If you don't think it can survive, give your reasons for why you think the model is unsustainable and will fail.

You have been hired as a consultant to a small clothing manufacturer who wants to emulate the success of Zara and Benetton. She wants advice on an innovation strategy which takes the key lessons from these successful firms. What would you offer?

. Zara Home has just opened using the same basic business model and deploying the same innovative approach as the rest of the business but in the home goods field. Do you think it might succeed and why?

Explanation / Answer

Yes, Zara's model is sustainable as they are able to innovate in the creation of products. The designs they have are unique and they do not create multiple pieces of the same dress and so this acts as a differentiator.

To preserve their edge over the next 5-10 years, they need to

To the small Manufacturer:

The new approach for home goods will not be a good idea and chances of failure is high as:

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