ZARA CLOSING STATEMENT

What is Strategy? Michael Porter states that companies must be flexible to rapidly to competitive and market changes. They must benchmark continuously to achieve best practices. A company can outperform rivals if they can establish differences they can preserve. It must deliver greater valuable to customers to create comparable value at lower costs, or do both. Competitive strategy is about being different it means deliberately choosing a different set of activities to deliver a unique mix of value.
Furthermore, Porter believes that the desire to grow has the most perverse effect on strategy. Tradeoffs and limits appear to constraint growth. Serving one group of customers and excluding others, for instance places a real limit on revenue growth. Differentiators lose sale to price sensitive customers. Managers are constantly tempted to take incremental steps that surpass those limits but blur a company's strategic position. eventually pressure to grow, or apparent saturation of the target market lead to managers to broaden the position by imitating competitors and making acquisitions. Compromises and inconsistencies in the pursuit of growth will erode the competitive a company had with its original varieties or target customers. Too often, efforts to grow blur uniqueness, create compromises, reduce fit, and ultimately undermine competitive advantage. The growth imperative is hazardous to strategy.
For example, based on its successful experience in operating in New York Zara pursued a strategic market expansion strategy in the outskirts of Buenos Aires. This strategic choice did enhance the competitive capabilities of Zara in terms of short lead time and effective logistics control but added to pressure from competitors who sourced abroad resulting in competitive pricing in the middle market by rivals such as H&M and GAP.
The essence of