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One Reason Zara Is So Successful Is Because It Operates

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One reason Zara is so successful is because it operates in the fast fashion space, which means instead of 6-month seasonal output, it commits to short-term demand forecasts of around 2 to 6 weeks.


Definitions:

Existing Businesses

Companies or enterprises that have been operational for a period of time and are not newly established.

Franchises

Business models where individuals can buy the rights to open and operate a location of a larger company.

Capital Intensive

A characteristic of businesses that require large investments in capital assets, like machinery and equipment, to produce goods or services.

Labor Intensive

Describes a process or industry that requires a large amount of labor to produce its goods or services, compared to the amount of capital used.

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