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The chain offers a diverse clothing lines for women, men, and children, legions in latest designs. It operates through “The Cube” under the command of the giant Inditex Corporation. The corporation has been on the rise since 1996 recording massive sales ahead of its competitors like Gap. Thus, the firm became the world’s largest fashion retailer in 2008 with its eight brands. However, the corporation’s growth rate attributes to the success in Zara sales, which amounted to two-thirds of the corporation sales. Zara is venturing in fast expansions all over the world with new markets in over 68 countries in the globe. It is the most innovative and devastating fashion retailer in the world with immense profits though its products are relatively cheap. The chain relies on latest blend of technology to devise its market strategy. The chain has unleashed a strategy that shuns advertising, does not run sales, and keeps its huge investments of production at home. In a field where almost all firms outsource their manufacturing processes to low-cost countries, the Zara Company seems to negate all the fashion industry rules thus remaining vertically integrated in the market. However to analyze the success of Zara strategy in the market, we will need to consider various factors in relation to technological advancements. The analysis will consider the internal and external perspectives and use strategic models and theories in drawing a conclusive decision. The analysis will focus on critical issues that would guarantee long-term success. The analysis will also look into the sustainability of the strategy, its feasibility, and acceptability in the fashion industry. ...
marise the key findings from the analysis and make informed recommendations in an effort to maintain the growing success of the company. The paper will use the SWOT analysis to summarise the analysis and reach a defined conclusion. The paper will apply the Igor Ansoff Matrix models, seven s analysis, and pestle, in the analysis. Igor Ansoff Matrix model (Ansoff, 1988, n.p) Existing markets New Markets Existing New In using this model, I will try to show the market penetration of Zara products in the existing markets. I will also highlight the market development of Zara products in new territories in both new and existing markets. Additionally, the model will note diversification of Zara products in new markets using the existing capabilities. The model will henceforth highlight Zara product development in both new and existing markets using the existing capabilities. External analysis PESTLE (Johnson et al, 2009, n.p) PESTLE Summary Zara Company is subject to political stability and attitudes to competition. This rises from its major establishment and dominance in one country. In case of political instability and change of attitude in competition, Zara market advantage will crush. Factors of global recession and economic growth will equally affect the company since it has stores in many countries. Changes in lifestyle and social mobility will jeopardize the company sales since it concentrates mostly on two stores located in the same country. Changes in technology will significantly affect the company since its operations rely on technology and machines. Competition, employment laws and difference in laws between nations has a great significance in the mode of competition, recruitment of staff, and the running of the company in various nations it plans to invest. The
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(“Zara Strategy Analysis Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
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(Zara Strategy Analysis Essay Example | Topics and Well Written Essays - 2500 Words)
“Zara Strategy Analysis Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/management/1396610-zara-strategy-analysis.
The conclusion from this study states that apart from certain issues that Zara could face in the future, it has been successful all over the years through sticking to its current system. However, with the continued expansion of Zara into new areas and markets, a change would be required in the current process and system.
Strategic Analysis of Zara BY YOU YOUR SCHOOL INFO HERE DATE 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.
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. Because of this, the business must be aware of the competitive forces that drive strategic needs.
UK falls in the category of developed economies. UK takes an active participation in deciding trade policies in NATO or North Atlantic Treaty Organisation. In the wake of the current economic crisis, the UK government has taken some tough measures for the reduction in financial deficit which aroused due to sovereign debt crisis and current economic decision (Lynn, 2010, pp. 93-102). .
Zara – Fast Fashion Introduction Zara is the largest of Inditex’s apparel retail chains. It is currently at its international expansion. In line with this, there is a need to come up with detailed analysis on how Zara might continue to expand and be successful enough in its strategic moves in the future.
Zara is one of the leading brands in the retail industry for clothing and apparel. This market has witnessed intense competition among the existing players and also emergence of new players. The pattern of trading is also undertaking a shift due to the use of online medium of transaction for purchase of clothes.
The paper taqlks about Porter’s Generic Strategy which consists of three different business level strategies, such as cost leadership strategy, differentiation strategy and focus strategy. It is highly important for Zara to consider both cost leadership and differentiation strategy in the business operation processes.
Its stores sell clothes for men, women and children. ZARA segments its market by sex. It produces products that target men, women and children. For adult wear, ZARA subdivides its products into shoes, upper garment,