Zaras strategy differentiates from their competitors strategy in different areas,

1. Zaras business model is based on a quick response to the fashion market system instead of product prediction.
2. Zara embraced a global perspective opening stores in different countries and continents, and while they have manufacturing operations in different locations their manufacturing operations are not as diversified. Moreover, their design operations are mainly located in Spain.
3. Zaras approach to inventory is to have small volume lots of multiple products instead of high volume lots.
4. Zara relies on word of mouth advertising.

While these and other characteristics represent a competitive advantage for Zara, they also represent a treat as working in different locations / cultures with a high variety of styles demand a higher level of control, coordination and increase the level of stress for different areas of the company such as design, supply chain, and manufacturing.

Considering the case description including the exhibits provided write a report where you address the following questions:

1. With which of the international competitors listed in the case is it most interesting to compare Inditexs financial results? Can you identify and contrast the strategies from Inditex and its competitors?
2. How specifically do the distinctive features of Zara's business model affect its operating economics?
3. Can you list and explain the advantages and risks involved in the operation of its supply chain particularly ones connected to its quick-response capability, and the ways in which they create competitive advantage?
4. Given that Zara follows the trends in the market. How would you forecast and schedule equipment utilization in this environment?
5. What would you recommend Inditex CEO Jose Maria Castellano to strategically reconcile the need of having low cost manufacturing, high efficiency, rapid response, low inventory, and efficient distribution?
6. What would you recommend GAPs CEO? How should GAP confront Zaras expansion? From GAPs perspective would you rather invest money on modifying GAPs business model to compete with Zaras business model or would you rather spend that money on buying Zaras stock?
7. Conclusions. Describe what is your take away from Zaras case study.