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These factories apply just-in-time production (JIT). Again, this gave Zara further competitive advantage, in terms of both cost and control.
Zara’s business model makes it more profitable then any other retailer. We already know from marketing that the retailer gets almost half the price of the commodity sold. So by playing both the role of the manufacturer and the role of the retailer, Zara is definitely much more profitable than the average retailer with similar posted prices.
Zara does not compete on price. The usual Zara customer is not very price sensitive. Zara rather competes on fashion they can only do that by having that quick response capability...
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