Assess the extent to which Zara's use of just in time (JIT) may have contributed to its success. - Edexcel - A-Level Business - Question 2 - 2019 - Paper 2

Limited stock encourages customers to visit Zara stores more frequently, as they know that items may not be available on their next visit. Zara customers visit stores an average of 17 times a year, compelling the brand to maintain high levels of customer engagement. This strategy drives sales, as a higher frequency of visits typically leads to more purchases, thus contributing to the overall success of the brand.

However, the use of JIT does come with risks. The danger of running out of stock can frustrate customers, potentially damaging Zara’s reputation and leading to customer loss. Additionally, selling in limited quantities may increase average costs, such as distribution costs, if economies of scale are not achieved. Balancing these factors is crucial for maintaining Zara's market position.

In conclusion, while JIT has significantly contributed to Zara's operational efficiency and customer engagement, it is essential to consider the potential drawbacks. Ultimately, Zara's success may also be attributed to other factors, such as effective product design and innovative marketing strategies, which work in tandem with the JIT system.