Table of Contents
Introduction
ZARA is a leading firm in the fashion industry. It is the flagship store of Inditex Group that is based in Spain. ZARA operates in 88 countries in the America’s, Europe, Africa, and Asia. ZARA was established in 2003 in Spain. The United Arab Emirates is an important market for ZARA. There are eleven ZARA stores in the UAE. This number is low considering the fact that the country is highly populated. However, it is important to note that significant efforts are being made by the firm to make the ZARA brand more popular in the UAE. In light of the fact that there are many competitors in the fashion industry, ZARA needs to consider making adjustments in its operation structure within its UAE base. These adjustments are expected to make to make ZARA Products accessible to the wider markets in the UAE. The current operating stores reach about one million customers annually. There is a need to tap more on the big market that exists in the UAE (Petek & Ruzzier, 2013). This paper presents considerations for implementation in successful service network for ZARA in the UAE with a specific focus on location, customer waiting time, quality of service and availability. These suggestions are intended to make the company command a larger market share in the United Arab Emirates.
Location
Generally, ZARA operates in high-end cities and real estates. This phenomenon can be observed in all the stores that it operates globally. The first store was opened in the UAE in 2007. Since then, nine years ago, ten more stores have been opened to make fashion products available to customers. Location is an important aspect of the operations of ZARA as would be the case with any other firm that is market-oriented. The current stores are strategically located to meet clients’ need and other critical market requirements. ZARA UAE needs to set up more stores in the country so that the products are made available to the millions of potential customers. Abu Dhabi, UAE’s capital, is a reputable business destination characterized by numerous business activities. However, other regions in the country can be exploited as well in order to grab a larger market share in the country (Belch & Belch, 2012). Most importantly, the location of the stores is a great determinant of the market share that ZARA can command.
In order to ensure that current stores and those that will be opened in future are strategically located, the firm should concentrate their stores in areas where their target markets exist. Given that the main consumers of the products are middle class upwards, the location of stores should be done on those grounds. Another important aspect that needs to be considered is to have the stores located in malls or shopping centers rather than in independent stores. This arrangement will ensure that more people become aware of the products that ZARA offers. For instance, a random shopper in a mall may be interested in ZARA products and he or she may plan for a purchase later. In addition, ZARA should enhance the location aspects of their stores to ensure that they are highly attractive to potential buyers. Through effective location strategies, ZARA is bound to realize a successful service network.
Customer waiting time
ZARA has maximized on the online space not only for advertisements but also for shopping activities. Online shopping is a crucial element in modern day business operations. Customer waiting time affects business greatly (Caywood, 2012). When services are delayed, business is lost while time-bound services always gain more business. The online shopping space is large. ZARA is well advertised through the Internet. All areas that have a ZARA store have a product-delivery system. Online shopping presents a lot of opportunities for the fashion firm in the United Arab Emirates. A critical concern that emerges and that must be well addressed to ensure that business is boosted is customer waiting time. The firm should always ensure that at all times; the customer should receive all ordered goods in good time. Effective, efficient, and timely delivery of goods will go a long way to ensure that ZARA remains in the fashion business in the UAE.
The firm needs to reduce the time that a customer expects ordered goods to be delivered to him or her. On average, most of the goods sold in the UAE take up to seven days before they are delivered. This system needs to be reviewed so that goods can be delivered even within twenty-four hours. Customer waiting time is not a problem concerned with online shopping only (Martin & Schouten, 2012). ZARA UAE needs to improve on customer waiting time in their operation stores. A successful service network is a concern that any firm must address continually in order to grow to the desired levels of business performance. Initially, ZARA UAE took up to two weeks before goods were delivered to customers. Much as the firm has improved on this system, there is still much more work that needs to be done to ensure that goods are delivered (sold) efficiently and effectively.
Quality of Service
This element alone has ensured that ZARA maintains the exact quality that its customers expect. Several adjustments have been made to facilitate the improvement of products delivered by the firm to its customers. High product quality is an obligation of any given firm to the market. Owing to the fact that ZARA UAE only sells the goods that have been produced in Spain, its main objective is to maintain a high quality of service in the delivery of the goods and services. In addition to the quality of service, ZARA needs to aim at reaching a million more customers every year. The quality of service applies to both online and physical shopping activities. The firm should adopt these three elements in service delivery to improve quality; simplicity, speed, and substance (Pelsmacker, Geuens & Bergh, 2014).
Simplicity implies that the service delivery process should be as simple as possible. Customers do not want lengthy hectic purchasing processes. The processes that ZARA adopts should be tailored towards achieving simplicity in all the services that are offered. Speed will ensure that products are not only delivered in time but also with the desired quality. ZARA UAE should adopt speed as an essential tool for service when dealing with all its customers. The company should aim at higher numbers of customers through simplified and fast service delivery processes. Substance of service should always be maintained in all forms of service delivery. When the substance of service is ensured, the firm will be on an upward trail to realize more success in the fashion industry (Mckinley, 2012). The observance of these principles will improve the quality of service delivery and will eventually place the firm in a favorable position among the firms in the fashion industry in the United Arab Emirates.
Availability
This is also a key concern in the operations of ZARA UAE. As noted earlier in the report, the company operates eleven stores in the country. It has been noted that there is much that the firm has to do in order to achieve more presence in the UAE market space. There are a number of factors that the firm may consider with regard to building its presence in the market. First, ZARA UAE needs to diversify the products and services it sells. Diversification implies that many more people will be attached to the firm through the products and services that they buy. Moreover, diversification of services would be a sure step for the company to realize more sales in the near future. Secondly, ZARA may consider improved advertisement initiatives to promote its presence and operations in the United Arab Emirates. Media advertisement should not be overlooked since online marketing is the major advertising space that businesses have employed nowadays.
Another avenue that ZARA may consider to explore is partnering with local fashion firms to enhance the brand as well as the services that the company offers. In the event that the company considers this suggestion, there are several benefits that may come its way. Most importantly, its present will be felt widely in the country. Above all, ZARA UAE needs to check its presence in the country if it is to remain in business. Other countries have up to 60 stores with the ZARA brand a unique brand in those countries. It rests in the hands of the company’s management to ensure that all market factors are manipulated to its benefit.
Conclusion
There is still more room for improvement that ZARA UAE has to fill up in order to enhance its business operations in the country. This paper has presented measures that can be applied to ensure a successful service network as far as the company is concerned. Location, customer waiting time, quality of service and availability are critical aspects that the company needs to consider for its growth (Fill, 2012). The secret behind enterprise growth is putting the client first in all operations. The recommendations that have been made are specific to this fact. It is hoped that through the implementation of these measures, ZARA-UAE will achieve more success in its operations within the fashion industry.
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