Question

Firms earn economic profit by offering a differentiated product. How does Zara differentiate its colthing?

Firms earn economic profit by offering a differentiated product. How does Zara differentiate its colthing?

Homework Answers

Answer #1
  • The clothing company which differentiates itself in many areas.
  • Zara is the part of the company which is the world's second largest clothing retailer.
  • The company improved its position on the market innovation.
  • Zara's idea was to sell cheap clothes inspired from famous french fashion brands.
  • Zara managed to differentiate its image as a brand from its competitors and also became one of the most popular garment brands world wide.
  • The clothing has spread its high fashion to low cost product by establishing unique and successful practices.
  • Unlike most clothing retailers who relocate their plants ,twothird of Zara's designs are produced in spain to reduce the time to transport goods to stores.
  • Zara succeeded in fast fashion and persuaded high paying customers.
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