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Drawing on the Resource Based View Literature, Evaluate Whether and How Zara Generates Sustainable Competitive Advantage

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Drawing on the Resource Based View literature, evaluate whether and how Zara generates sustainable competitive advantage
Based upon the analysis of the ‘ZARA: Fast Fashion’ case study and referring to literature on the resource based view along with other appropriate theory and frameworks, I will draw a conclusion as to whether Zara have been able to create a sustainable competitive advantage, focussing primarily on their core competences developed over time.
The resource based view stems from the idea that today’s market environments are so unpredictable and fast moving that it is wiser to form a base for strategy on the internal resources and capabilities of a company, rather than focussing on the external market (Grant, 2008). To gain a competitive advantage a firm must implement a strategy consisting of valuable and rare resources not being employed by current or potential competitors. To create a sustainable competitive advantage a firm must have unique resources that are non-imitable and non-substitutable (Barney, 1991).
Competences derive from the integration of resources, assets, routines and values (Prahalad and Hamel, 1990). They become ‘core’ competences when they strategically differentiate themselves from other organizations (Leonard-Barton, 1992), helping them build a sustainable competitive advantage. Prahalad and Hamel (1990) state that a world leading company is unlikely to have more than five or six core competences and it is crucial to note that, while they can be discussed individually, it is when they are combined in a mutually reinforcing way that a sustainable competitive advantage can be obtained (Stacey, 2003).
Zara’s primary core competency comes in their manufacturing process. From their beginning Zara exhibited a distinctive business strategy in that they manufactured their most fashion-sensitive products internally (Z9), with 20

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