Zara applied vertical integral business model that make competitors hard to copy its business model. Vertically integrated business model cannot be achieved in a short period of time, which requires a lot of time and effort. Although suppliers provide more reliable to support the company, however, the lack of competition often leads to higher prices. This makes competitors results in fewer varieties of supply choices. Supply costs increases can be achieved through the integration outweigh any benefits.
On the other hand, Zara attaches great importance to every part of the information exchange of the entire supply chain. They communicate between departments and the design to make transfer of information easier by insert layers of bureaucracy. Market experts are in constant contact with the store managers in China and provide new design and rapid feedback and give possible market prices.
So, Zara resources and capabilities are hard to imitate. Valuable, Rare and Hard to imitate resources and capabilities can create sustained competitive advantage.
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