Nobody downloaded yet

Strategic Analysis of Zara Inc - Essay Example

Comments (1) Cite this document
Summary
Zara maintains many retail competitors, ranging from H&M to Benetton, each providing products with similar characteristics and moderately-similar pricing structures. It is a highly saturated market in which Zara maintains its international operations…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.2% of users find it useful
Strategic Analysis of Zara Inc
Read TextPreview

Extract of sample
"Strategic Analysis of Zara Inc"

Download file to see previous pages Research indicates these factors include intensive competitive rivalry, buyer power with consumers, and even threats of substitute products that can drive pricing lower. Research has also indicated much negative publicity for Zara, something requiring addressing by Zara executives in order to improve and sustain a quality brand reputation in its international markets. Though Zara is able to effectively create some barriers, such as new market entrants and by removing buying power by limiting outsourced supplier presence, Zara still requires more emphasis on understanding market characteristics effectively to provide relevant products and gain more brand loyalty. Recommendations for business improvement have been identified as conducting more intensive market research, more emphasis on the promotional function and utilisation of interactive marketing, decentralisation of certain business functions along the value chain, and building more self-owned manufacturing and supply capacity in order to gain competitive advantage.
1.0 Industry analysis Buchanan and Huczynski (2010) provide knowledge of contingency theory, a strategic model that indicates as circumstances in the market or industry change, the organisation’s structure must also be changed in order to adapt and stay relevant. Zara is a prime example of a business that understands the market characteristics and capabilities of major rivals, creating contingency strategies in order to respond (quickly) to changing market and industry dynamics. This is accomplished, of course, through maintaining a stance in which Zara executives routinely scan the external environment to identify threats and opportunities that could contribute to a better market position. Thompson, Gamble and Strickland (2005) offer the Five Forces Model proposed by Michael Porter identifying five competitive threats that are industry-related that will either enhance or disturb maintaining profitability and competitive advantage. The most intensive industry concern for Zara is threat of substitutes in its operating markets. H&M, Gap Inc. and Benetton offer similar fashion merchandise that is focused on either youth markets with a trends-focused set of buying characteristics or mass markets that are attracted to fashionable styles at affordable prices. Macro-economic theory indicates that threat of substitutes becomes a legitimate concern when the demand for the product has been affected by price changes associated with substitute products (Boyes and Melvin 2007). For Zara, substitute products include clothing sold at resale shops, such as with the emerging trend for retro-style fashions. In this environment, clothing is sold at a nominal price, but still offering consumers products that are deemed fashionable. The ability of consumers to procure merchandise and fashion accessories from a variety of lower-cost sales facilities has the ability to affect demand for Zara’s merchandise. Thus, Zara must be aware of alternative procurement ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Strategic Analysis of Zara Inc Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved from https://studentshare.org/business/1404436-case-study-report
(Strategic Analysis of Zara Inc Essay Example | Topics and Well Written Essays - 2500 Words)
https://studentshare.org/business/1404436-case-study-report.
“Strategic Analysis of Zara Inc Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/business/1404436-case-study-report.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ja
jakaylaschaefer added comment 4 months ago
Student rated this paper as
I never thought 2500 words essay could be written in such a free manner. I loved the background of this essay. Will definitely use it for my own work!
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Strategic Analysis of Facebook Inc
...?Running Head: STRATEGIC ANALYSIS Strategic Analysis of Facebook Inc. Introduction In existing business environment, there are a number of different issues faced by business organizations. Owing to different environmental issues faced by the company, its performance in the share market varies accordingly. For this purpose, it is quite essential for an investor to have some intensive analysis of the business, marketing and financial performance of the organization within the market place (Kotler, & Keller, 2012). In this regard, the business organization selected for the paper is Facebook Inc. Facebook: about the company...
11 Pages(2750 words)Term Paper
Strategic Analysis of ZARA
...? Strategic Analysis of Zara BY YOU YOUR SCHOOL INFO HERE HERE EXECUTIVE SUMMARY Zara operates in a very forceful and saturated retail industry with many competitors that have similar products on the market to Zara and with competency in gaining market attention with target customer segments. Per se, Zara has many risks imposed by such factors as rival promotional competence, the ability of consumers to dictate pricing among retailers, and even responsiveness (or lack thereof) of suppliers that are critical to meeting the two week lead time from design to delivery. The report identified that Zara requires acknowledgement...
12 Pages(3000 words)Essay
Strategic Analysis Of Fast Fashion Company: Zara
...? Strategic analysis of fast fashion company: Zara BY YOU YOUR SCHOOL INFO HERE HERE Executive Summary Zara is able to successfully outperform competition in terms of sustaining a low cost product provider strategy founded on lean manufacturing philosophy and controlling waste in raw products and finished merchandise. Other competitive advantages include a strong, centralised business culture that is devoted to compliance, productivity and efficiency throughout the whole value chain in a business model that requires dependency between all different business units. Outside of the advantages, research has identified that Zara has weaknesses in areas of avoiding negative public relations, protecting the firm from economic conditions... ...
11 Pages(2750 words)Essay
Dell inc Strategic Analysis Report
...Strategic Analysis Report Introduction Dell Incorporation (Dell Inc.) is regarded as one of the global leading IT (Information Technology) organisations which offer broad assortment of computing solutions as well as services to its potential global customers. The organisation directly provides its different effective services through its own distribution channels throughout the globe. Through its customer-centric approach, Dell is capable to deliver value-added products or services to its worldwide customers that eventually supported the organisation to attain loyalty and trust from its people and achieve unique sustainable position within the IT industry (Thomson Reuters, 2013; Dell,...
16 Pages(4000 words)Essay
Strategic issues of Zara
...? Project Table of Contents Table of Contents 2 In-depth analysis of competitive forces and strategic issues of Zara 3 Detailed analysis of the competitive forces 4 Strategic issues of Zara 6 2.Strategic Audit 7 3.Identification of External Stakeholder Issues faced by Zara 11 Issues of Copying of fashion trends 11 Supplier accused for slave labour 12 Case of Bangladesh Fire 12 Criticisms for short product life span 12 4.Strategic Recommendations for Zara 13 Recommendation for centralized logistic model 13 Recommendation for market expansion 14 Recommendation for Store...
13 Pages(3250 words)Essay
Yahoo Inc. Strategic Analysis
...implementing various strategies that would enable it improve the services offered and the amount of revenue collected. Such moves included hiring competent employees, introducing more services and setting up a webpage that is enticing and will enable them get a number of clicks. In the face of rising competition in the market environment, the company has strived to improve in its revenues and competitive position in the market. This study, therefore, looks into the various strategic aspects that the company has put, in place, to compete favorable in the market. With other big players like Google in the market, the strategies put in place by the company would ensure fairness in the market competition. The Yahoo...
5 Pages(1250 words)Case Study
DeVry Inc: Strategic Financial Analysis
...DEVRY INC. DeVry Inc: Strategic Financial Analysis SCHOOL DeVry Inc. (DeVry), one of the largest private, degree-granting, regionally accredited higher education systems in North America, owns and operates DeVry University, Ross University, Deaconess College of Nursing and Becker Professional Review. This paper evaluates DeVry's proposal to obtain financing from venture capital fund for its latest endeavor towards the further diversification of its program offerings. The proposition is assessed in light of the firm's financial performance and strategy as well as its growth potential. In view of the company's lackluster performance in the past five years...
12 Pages(3000 words)Essay
Zara Inc Success
...of this strategic plan is to increase shareholder value. This is planned to be achieved by attaining the following two long term objectives. The brand equity of Zara as a brand would be increased by increasing its customer base and improving its brand perception. Moreover premium pricing would increase the revenue generated with its products. This coupled with low manufacturing cost would bring in good benefits. Strategy Analysis and Choice Differentiation The brand is currently using the cost leadership strategy. By reducing inventory and design cost they are allowed to reduce prices on products. This would be shifted to a differentiation strategy. This differentiation strategy would...
9 Pages(2250 words)Research Paper
Strategic Analysis of Apple Inc
...Strategic Analysis of Apple Inc. 1.Introduction. Apple Inc. is one of the largest service provider and computer company in the world. It rose from a humble beginning when two young entrepreneurs thought of assembling personal computers and sold it to their friends and acquaintances. Their strategies, knowledge of technology, drive and ambitions brought Apple Inc to its present status of financially stable company(Company history). Purpose of the study is to analyze the strategies Apple Inc. used in their business to serve as a guide and inspiration to entrepreneurs who want to start their own business. 2.Following paragraphs...
9 Pages(2250 words)Essay
Zara Analysis
...& Bear. Although each of these brands pertains to retail textile and distribution, for Inditex each one represents a different strategic business unit. The flagship brand however, is Zara. CONSOLIDATED FINANCIAL STATEMENTS 2012 Profit and Loss Statement 20121 Balance Sheet as of 30 April 20122 CONSOLIDATED FINANCIAL STATEMENTS 2011 Income Statement-20113 Balance Sheet 20114 Cash Flow Statement 20115 FINANCIAL STATEMENTS 2010 Income Statement 20106 Balance Sheet 20107 Statement of Cash Flows 20108 FINANCIAL STATEMENTS 2009 Income Statement 20099 Balance Sheet 200910 Cash Flow Statement 200911 HIGHLIGHTS OF FINANCIAL STATEMENTS Profits According to Reuters, Zara’s owner Inditex reported...
4 Pages(1000 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Strategic Analysis of Zara Inc for FREE!
Contact Us