This article, Zara Thrives by Breaking All the Rules in BusinessWeek, talks about how Zara is succeeding by doing things differently. However, the fallacy is saying there are “rules”. The “rules” are how other people do it. What Zara has done is seen the weaknesses in those rules and done things differently. Zara knows that the sum is what matters, not the parts. So even if parts of its manufacturing could be made cheaper, it would add additional costs down the line. That’s smart. And that’s why they are thriving.
Of course, unlike some of their competitors, they know what to make that will sell. You can have the best supply chain in the world, but if you are delivering something people don’t want, you are dead. Zara knows what people want, and they can adjust quickly when they make a mistake. Not only that, but Zara has lots of ideas, unlike some of their competitors. They seem to produce way more styles than other clothing manufacturers, making it more likely you will find something you want. That’s also very smart.