Zara changes its clothing designs on average every two weeks while competitors change designs every two or three months. Zara has around 11,000 different items per year in its thousands of stores worldwide compared to competitors who have 2,000 to 4,000 items per year in their stores. Zara's highly responsive supply chain is key to its business success. Zara aims to achieve a high level of work efficiency. The heart of the company and its supply chain is a large, automated distribution center (DC), called "The Cube".

Company agents are always on the lookout for new fashion trends at clubs and social events. When they see an inspiring fashion, they quickly send design sketches to the garment designers at The Cube. New models of clothing can be designed and shipped to stores within 4 6 weeks, and older models can be modified within 2 weeks.

The short production run creates design scarcity and creates a sense of urgency, as well as a reason to buy while supplies last. As a result, Zara doesn't have much excess inventory, nor does it need to heavily discount its clothing products. Zara sells 85% of its goods at normal prices compared to the industry average which only sells 60% of its goods at normal prices.

Zara prefers to invest its money in opening new stores, as opposed to spending money on advertising campaigns. An article in Forbes stated that there were "more than 3,000 stores". Zara also uses a flexible business model, where its stores can be owned, franchised or co-owned with partners.

Zara buys in bulk for only a few types of fabric (only four or five types, but the fabric types may change from year to year), and does its own garment design, cutting and dyeing. This way fabric manufacturers can make fast shipments in bulk directly to Zara DC The Cube. The company purchases raw materials from suppliers in Italy, Spain, Portugal and Greece, and those suppliers deliver within 5 days of the order being placed. Most of the delivery of goods from suppliers is done by truck.

The Cube measures 464,500 square meters (5 million sq ft), and is highly automated, and is connected by an underground monorail to Zara's 11 apparel factories within a 16 km (10 mi) radius of The Cube. All raw materials sent to the clothing factory and all finished goods sent to the store will pass through The Cube.

Zara can ship clothes to its stores around the world in just a few days: To China 48 hours; to Europe 24 hours; to Japan 72 hours; to the United States - 48 hours. Delivery to stores in Europe is done by truck, while clothing is sent to other locations by air.

a. Based on the description above, which global operations strategy option is applied by Zara? Briefly explain your answer!

b. What competitive advantage strategy should the company have to achieve Zara's goals, what is the role of Operations Management in achieving these goals?

c. Draw and describe the supply chain from Zara!

d. What sourcing strategy does Zara use? Briefly explain your answer.