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Academic Journal of Business & Management, 2021, 3(11); doi: 10.25236/AJBM.2021.031103.

Value Creation Strategy Analysis of ZARA since Internationalization

Author(s)

Sun Yide

Corresponding Author:
Sun Yide
Affiliation(s)

School of Economics, Shanghai University, Shanghai, China

Abstract

“Less variety, large batch" belongs to the conventional manufacturing industry, but for the "long-tail market" nowadays, "more styles and small quantity" has become a common business model. Zara, with its "multiple styles and small quantities", has already been a fresh model in the long-tail market, which consciously "creates shortages" in production. Even though it can produce almost tens of thousands of items per year, the number of item is quite small. Zara only sells a limited number of items, even for popular items, which is a way for the company to get consumers into the habit of coming back regularly. Just as the limited editions of stamps increase the value of stamp products, Zara in this way satisfies a large number of personalized needs and cultivates a large number of loyal fans. "Multiple styles, small batch" enables Zara to achieve a breakthrough in the business model of clothing enterprises.

Keywords

Value Creation, ZARA, Business Model

Cite This Paper

Sun Yide. Value Creation Strategy Analysis of ZARA since Internationalization. Academic Journal of Business & Management (2021) Vol. 3, Issue 11: 13-19. https://doi.org/10.25236/AJBM.2021.031103.

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