Zara Business AnalysisFundamental Business Philosophy of ZaraZara's fundamental business strategy is very simple and consists of linking customer demand to production and preferring production to distribution. Zara operates its business in the fashion industry, which is sensitive to seasons and rapidly changing customer tastes. Zara was approached and considered its business as a perishable raw materials business, just like a freshly baked cake or a bread to be consumed quickly. Therefore, the company's main business tactic in the context of this business philosophy is: [Short delivery times] More fashionable clothes and accommodate customers' rapidly changing tastes[Decentralized management] Leverage intelligence and trust the judgment of employees [Lower quantities] Inventory will be a formidable burden for perishable products[More styles] Provide more choices to customers and more chances of getting it right.< Zara's business concept >Low-cost fashionLow-cost fashionReduce creative design ( copy of the main styles) Define a rapid response process Optimize the process (lean organization) Advertising for new arrivals only No discounted sales Specialized network for production Interdependent between design and product team Low product complexity: 3 types, sizes and colors More choices (approximately 11,000 new items in a year)No classics (Design for clothes to be worn 10 times)The principles for Zara's business operationBased on business strategy and tactics, Zara has sought to optimize its business functioning largely in three cyclical processes: ordering, fulfillment, design and production. Much of the process is standardized and simplified thanks to the excellent control and intuitive decision-making freedom of the employees. In short, the principle on which Zara's business is based is the optimization of all business processes and the elimination of all redundancies and unnecessary things. More extensive or peripheral principles can be summarized as follows; Keeping up with fashion; short lead times and rapid response to the market Risk reduction; reduce the quantity of products manufactured so as to reduce the burden of inventory and the burden of frequent discount sales. Ownership and control of production; Vertically integrated manufacturing operation to enable the constant introduction of new items and also ensure short delivery times