As the generic strategies have three parts i.e. segmentation strategy, cost leadership and differentiation strategy. Zara has followed an optimal combination of all these. Products have been characterized into three major parts i.e. male, female and children but extensive distribution of products is avoided, e.g. clothes of young girls have not been separated from that of 40+. Product has got differentiation on base of fast fashioning concept, a high turnover rate i.e. 10,000 single products in a year. Moreover products are manufactured on day to day varying trends in market. Zara has offered products at lower prices in market and has developed skills to produce items at lower prices as well yet it is has not got leadership in cost management, a minor operating capital has been gained.