Zara has various key competencies that help in its success in the workplace that is supposed to be addressed in the best way possible for the success of the organization. The key competences have been associated with the growth of the company. The company called out an initial public offering in the year 2001 that enabled the company to gain the necessary capital that enabled them to grow and compete in the market accordingly. The growth of the business was indicative of the fact that the stock price grew by 50% despite the fact that the market conditions were very harsh. The measures that were put in place by the management were hailed for the success of the company in the market. The same managerial prowess is what has led to the growth of H&M to the point that it is recognizable and that many people can talk about it and can be proud of it. The key competences in the two companies are not only important for the success of the company in the short run, but also they are important in the case where the management of a given company wants to succeed in the long run.
Just like Zara, H&M has also managed to grow into a global apparel chain that serves many countries in the world providing the necessary products to the clients and at the same time, making a significant amount of profit that is likely to lead to the success of the company in the market. Both companies have competent teams that are in charge of research, sales, and marketing that has enabled the company to meet the needs of the people in the market. For instance, the research teams that have been contracted by the companies help in finding out the customer trends in the market as well as identification of the needs of the clients in the market. The information on the needs of the clients in the market enabled the companies to come up with the products that are needed by the clients hence increasing the chances of making profits and subsequent profits for the benefit of the clients and the company. Both Zara and H&M have a combination of high-quality research, design, sales, and marketing, as well as the necessary financial services that make it possible for the people in the society to afford the products that are being sold by the company in the market.
The production process is very important in the supply chain because it determines the quality of goods that the end-users will receive. In the case where the production process is robust and that the products that are being provided are of exceptionally high quality, then the clients will be attracted in the process. The attraction of the clients to the products will lead to an increase in the number of sales. These are the principles that are being used by Zara and H&M as they produce various products and services that are aimed to reach the clients located in different parts of the globe. The production process of apparel is very fragmented, and it involved a large group of people in different factories that are located in different parts of the world. The fact that the companies in the apparel industry serve a large number of people in the world requires them to have a larger staff that has been tasked with the role of making the production process much easier and faster as a way of meeting the ever-growing demand. Both Zara and H&M have put staff in place to meet the needs of the market as the demand grows continuously. Zara particularly has good human resource management that plays an important role in hiring and managing the staff in the workplace in such a way that their best can be achieved accordingly for the benefit of society.
Zara and H&M have the responsibility of making sure that they meet the needs of the market and that they are able to dominate in different areas. Application of various techniques such as the cross-border intermediation has made the companies to get their products in different parts of the world in such a way that they have seen an increase in the amount of profit that they make and that they are able to satisfy the clients in the marketplace. One of the techniques that they use in cross-border intermediation is through the use of cross border intermediaries that enable them to meet clients in different countries. The use of branded marketers is one of the core competencies that has taken the market with a storm. Such intermediaries source the products that have been made by the other companies in the market then sell them using their own brand names (Hill & Hernández-Requejo, 2008).
Both Zara and H&M take part in retail as a way of reaching the clients in the market. Retailing involves selling the products directly to the clients in the market without going through the intermediaries. The companies have set up various retail stores in different parts of the world where they sell the products to different clients in the market. Many clients would wish to visit the retail shops that have been branded with the original company names because that is the only thing that will guarantee them of high-quality products that are made by the companies (Collins, 2009).
In conclusion, the two companies have key competencies that are aimed to help them in achieving their goals in the market. Companies that have a challenge in key competences are likely to be outcompeted in the market. Meeting the needs of the clients is the main concern among the companies today, but a good number of them fail in that regard, something that makes them struggle. Zara and H&M have managed to put their key competencies in place to meet their needs in the market and to make sure that they are both competitive and successful in the market. With the increase in the extent of research, it is expected that companies will come up with more key competencies (Stadler, 2007).
Collins, J. L. (2009). Threads: Gender, labor, and power in the global apparel industry. University of Chicago Press.
Hill, C. W., & Hernández-Requejo, W. (2008). Global business today. New York: McGraw-Hill Irwin.
Stadler, C. (2007, July 1). The four principles of enduring success. Harvard Business Review. https://hbr.org/2007/07/the-four-principles-of-enduring-success
ZARA: Case Study Analysis – ResearchGate