Strategic Perspective - Zara Report - Essay Example

However, the company has been influenced by certain external factors throughout its dominant apparel retailing business. It has been found from the external analysis of Zara, it has been found that the company has been able to obtain substantial advantages within the global business environment. Moreover, the external analysis of Zara has revealed that in the fast fashion retail industry the bargaining power of buyers is quite high, therefore the company needs to constantly strive towards their varied and altering altering preferences.

Additionally, the company has developed robust internal resources based upon its competent human resource capabilities. On the other hand, in relation to corporate social responsibilities, Zara follows certain ethical code of conducts in its business practices which facilitates the company to achieve sustainability. However, Zara in recent years has been dogged with certain public relations related crisis due to certain undesirable conducts. Therefore, certain strategic options and choices as well as recommendations such as expanding outsourcing activities and focusing on PR along with CSR initiatives have been advised to the company so that it is able to maintain its dominant position in the global fast fashion retail industry.

Table of Contents Executive Summary 2 I. Introduction 5 II. External Environment Analysis 6 II. I. PESTEL Analysis 6 II. II. Five Forces Analysis 8 III. Internal Environment Analysis 9 III. I. SWOT Analysis 10 III. II. Internal Resources and Capabilities 11 III. III. Value Chain Analysis 13 III. III. I. Primary Activities 13 III. III. II. Support Activities 15 IV Corporate Social Responsibility (CSR) 16 IV. I. Ethics 16 IV. II. Public Relations (PR) Crisis 17 IV. III. External Stakeholders Issue 18 V.

Strategic Options and Choices 18 V. I. Expanding Outsourcing Activities to Other Developing Countries 18 V. IV. Emphasising Upon PR Campaigns 19 VI. Implementation and Evaluation 20 VII. Recommendations 21 VII. I. Improvement of the CSR Initiatives 21 VIII. II. Emphasise Upon Greater Initiatives on PR Activities 21 VIII. Conclusion 22 References 23 I. Introduction According to the present increasing competitive business scenario witnessed in the fashion retail industry, Zara has been recognised as one of the renowned fashion brands.

The company has been playing a leading role in the respective industry through expanding in different global regions across the world. Zara is the major brand of its parent company The Inditex Group, one of the dominant clothing retail organisations within the globe (Corporate Excellence, 2011). It can frequently be observed that the company highly seeks to represent unique fast-fashion clothing to the global customers. In accordance with the present day context, the company is performing its leading role in 86 countries through its more than 1750 stores across the different nations of the world (Inditex, 2013).

Emphasising upon the present competitive global clothing retail segment, the primary objective of this report is to demonstrate an in-depth analysis of Zara in the global clothing retail industry. The discussion of this report will be focused on analysing external environment of Zara through incorporating PESTEL and Porter’s Five Forces framework. Moreover, the discussion of t