Zara Fashion Company - Case Study Example

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This paper, Zara Fashion Company, is a report on Zara Fashion Company case study with the focus of providing strategic option and recommendations. The paper begins with introduction of Zara Company in which this case study is based on…
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Zara Fashion Company
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Download file to see previous pages From this paper it is clear that Zara company strategic analysis is provided in which the external environment is studied using PESTEL model. Porter’s five forces model is also adopted in studying the fashion industry that Zara is operating in. Internal strategic audit is provided in which various aspects of the organization is analyzed including financial performance, value chain analysis, design and infrastructure. The internal analysis provides an insight on Zara strength as well as is viability. External and issues that concerns the company stakeholders is studies. These factors notably affect Zara corporate image and the relationship among the stakeholders. This discussion highlights that Zara clothing company has grown over years since its establishment in 1975 becoming one of the famous companies in clothing and fashion industry. Zara has become the best known fashion brand in Spain as well as globally. This is attributed to its flagship brand of £2.5 billion holding group Inditex. Currently the company has emerged to be world fastest growing manufacturers of fashion clothing. The company has over 2000 stores globally and likely to double in the coming years. Within five years after its establishment the company had a spout of growth extending its operations over the principle cities in Spain. A key major breakthrough of its growth came after its venture into international markets under Inditex Corporation. Trendy Zara is the flagship brand for Europe's fastest-growing apparel retailer. ...
The company has over 2000 stores globally and likely to double in the coming years. Within five years after its establishment the company had a spout of growth extending its operations over the principle cities in Spain. A key major breakthrough of its growth came after its venture into international markets under Inditex Corporation. Trendy Zara is the flagship brand for Europe's fastest-growing apparel retailer. This growth can be argued to be attributed by company adoption of a sustainable breakthrough strategy. This has enabled the company to become world’s largest fashion group with a variety of fashion brand names such as Zara Kids, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Lefties and Uterque. ZARA STRATEGIC ANALYSIS Industry Overview Fashion and clothing industry is among the expanding most sectors in many economies in the world markets. This industry notably in Spain and its multinational ventures is characterized with high competition and change in designs and fashion affecting consumer demand in the key underlying companies. This industry has three major competitors both locally and internationally and these companies include Zara Company holding 9.8% of the market share, H&M Hennes & Mauritiz AB commanding 2.9% and Mango Market share being 2.6%. By 2011 the company is valued at $33.38, since the economic recession this industry forecasting a growth of 10.5% as from 2010 to 2015. It is also important to note that Spain in the fourth largest producer of textile. The industry majorly targets men and women aged 18-35 years old. These companies strive to provide affordable prices to the targeted cosmopolitan and young men and women interested in upscale clothing. This industry and its core markets ...Download file to see next pagesRead More
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