Zara Provide a value chain analysis of Zara’s business model. Specifically, for each primary and secondary activity in which Zara has a substantial value-creating activity, list the key components of this activity by citing specific case evidence. Identify at least one value-chain activity that is a "core competence" creating economic value for Zara. How costly would it be for competitors to imitate what Zara does in that value chain activity? How sustainable is that advantage moving forward? To encourage conciseness, there is a limit of two pages (single-spaced) for this assignment.

Value-Chain model for Zara's business model can be classified into Primary activities and Secondary activities.

The primary activities Components' are:

Inbound Logistics

Operations

Outbound Logistics

Marketing and Sales

Secondary activities components' are:

Procurement

Human Resource

Management

Infrastructure

Technology Development

The value-chain "core competence" is the value-chain activity is the MARKETING AND SALES in the Primary activities.

It will cost competitors considerably to immitiate Zara's value-chain activity, because Zara's value-chain activity for Zara's business model is unique. Competitors that imitate will still need to create a different business model for their business at additional cost.

Explanation:

What is primary activity?

Primary activities are the activities that relate directly to the physical creation, sale, maintenance and support of a product or service.

Components of primary activity are:

Inbound logistics – These are all the processes related to receiving, storing, and distributing inputs internally. Your supplier relationships are a key factor in creating value here.

Operations – These are the transformation activities that change inputs into outputs that are sold to customers. Here, your operational systems create value.

Outbound logistics – These activities deliver your product or service to your customer. These are things like collection, storage, and distribution systems, and they may be internal or external to your organization.

Marketing and sales – These are the processes you use to persuade clients to purchase from you instead of your competitors. The benefits you offer, and how well you communicate them, are sources of value here.

Service – These are the activities related to maintaining the value of your product or service to your customers, once it's been purchased.

What are Secondary Activities?

Secondary activities are the activities that support primary activities. They are also known as supporting activities. For example, procurement supports operations(Secondary) with certain activities, but it also supports marketing and sales with other activities(Primary)

Components of secondary activities include:

Procurement (purchasing) – This is what the organization does to get the resources it needs to operate. This includes finding vendors and negotiating best prices.

Human resource management –

This is how well a company recruits, hires, trains, motivates, rewards, and retains its workers. People are a significant source of value, so businesses can create a clear advantage with good HR practices.

Technological development – These activities relate to managing and processing information, as well as protecting a company's knowledge base. Minimizing information technology costs, staying current with technological advances, and maintaining technical excellence are sources of value creation.

Infrastructure –

These are a company's support systems, and the functions that allow it to maintain daily operations. Accounting, legal, administrative, and general management are examples of necessary infrastructure that businesses can use to their advantage.

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