ZARA: FAST FASHION Harvard Case Solution & Analysis

ZARA: FAST FASHION Case Study Solution 

Disruptive Business Models:

There was a time when companies around the world aimed to reach a quality standard and consumer were willing to stick with those standards. That time is long past now. Since mid-90s innovation has become the key division of every industry, where human resources are put together with the aim to change the market trend and make it acceptable to the customers.

There is a tremendous amount of competitors in the market with more coming every day,especially in consumer and retail businesses and to address this competition, entities develop new products or give a unique touch in existing products to separate their offerings with its competitors. An excellent example of a disruptive business model is the education industry, where both the generations young and old are entertained with new and easier techniques for learning skills, gaining knowledge and upgrading talents to cope up with the evolving trends.

It is estimated that within decades, the whole industry of education around the world will shift to E-education, providing new electronic applications and online classrooms. In fact, the education provider has already begun the motion like Academic earth’s Einztein (The Social Learning Network), “Berlitz's” Vocabu (Vocabulary learning) and TED-Ed’s online lessons.

The banking sector, on the other hand, has also adopted the disruptive model approach by allowing businesses and consumers to keep a close eye on their money by creating 24/7 helplines, online banking services and through the integration of soft-wares with other industries like wall-street. Relevant examples could be of Save-Up program initiated in 2010 by two of Silicon Valley entrepreneurs; this program rewards its clients with cash prizes and other products just for saving their money within Save-Up’s secure deposits(saveup, 2010).

Another example can be of Loyal 3, where any interested individual can buy stocks with investments as low as 10$. Loyal 3is more like a brokerage house, which participates in IPO processes by partnering up with companies to help handle their initial public offers (IPOs) and with its involvement in these groups, Loyal3 gained rights to offer partial shares to general public.(loyal3, 2012)

The Technology sector has always been in need of innovation, with more gadgets and impressive technologies, companies offering hardware, have made their way at the top through upgrading technologies and entertaining its consumers with new machines. However, with the adoption of the disruptive model, companies in the technological industry have started to shift their products from hardware to software.

Customers are pleased with these new products which occupy no room and can be carried throughout the globe with no time delay. One of the most recognized product is “iCloud” by Apple, which allows its customers to store data on virtual storage capacity which can be excessed at anytime from anywhere in the world. Furthermore, Intel’s “Perceptual Computing” program has allowed developers to participate in innovating technologies and come up with new ideas for the future market.(Intel, 2016)

Thus the Disruptive Business Model is in the continuous motion of evolving markets and industries in more desirable and luxury products. Which in turn is affecting the population around the world with changing trends and modest tastes. And to facilitate companies’ need-to-change, new organizations like “” have emerged, who provide other companies with statistics and knowledge about consumer markets around the globe, their changing trends and growing demands and further assist the companies in formulating effective plans to address the customer expectations.(trend watching, 2002)

(Arts, 2013)


The gap is one of the top market leaders in theapparel industry with reported sales of $2.01 billion for the 5-week period ended 2nd of Jan 2016(Gap Inc,, 2016).Gap Inc. was founded in 1969, with just one store located in San Francisco but now operates around 3700 stores (including 400 franchises) employing more than 150,000 employees. Gap’s approach to apparel industry is pretty traditional; it takes around nine months to plan the next fashion, create a market awareness through advertisement and then produce the required demand.

ZARA FAST FASHION Harvard Case Solution & Analysis



All the strategic decisions are centralized, and quality standard are vetted through a team of specialists, consists of elite fashion designers and executives. The produced products are placed in a centralized location, from where after another quality check the products are dispatched to other regional facilities(Gap Inc,, 2016).

Gap has been one of the most popular brands, demanded by millions of consumers, but began facing a decrease in demands/sales following the industry crises in 2008-2010. A 3% fall in sale of August 2016 (as published in The Wall Street Journal) forced Gap to rethink about its brand popularity among consumer markets and led to some changes in Gap’s approach.........................

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