The Growth Strategy of Zara - Essay Example

Zara Case Study In this section, I am going to explicate on the growth strategy of Zara to comprehend its affluence in the global scale. First, we can conduct a SWOT analysis to aid in the examination of the firm’s strategy. Through conducting the SWOT analysis, we can identify the various strengths, faults, prospects and probable threats that face the firm. Moreover, the two diagnostic tools encompass external and intrinsic analytical. In this SWOT analysis chief ideas regarding the business are expressed though there are numerous other notions that can be integrated.

Strengths and the particular faults or weaknesses comprise the internal factors while the prospects and threats comprise the external factors (Torun 7). In terms of the firm’s strength, it is undoubted that the entire management concerned with its operations ensures quick delivery of new merchandise. This contributes to the efficiency of its operations to a given extent. Moreover, the affiliation has armed itself with ingenious innovators with diverse and creative ideas with regard to its apparel designs that make it be competitive in the marketplace.

Moreover, Zara’s chain management techniques are ingenious and emanate from the prospective management aptitudes of its management personnel (Torun 7). However, in its daily operations, Zara still portends various weak points in terms of its management, in the case of selling its name to the entire global extent. In this regard it is factual that the affiliation does not invest much into advertising itself on the global market. Lack of advertisement is a hazard to the business strategy as it is a barrier to expansion of its services to the international level.

Besides, the current advertisements are apparently few and not numerous numbers of prospective customers to the chain are conversant with it. With regard to the external examination of factors, opportunities are available for every affiliation that has a dynamic and effectual growth strategy. Furthermore, Zara is not a exception of them as it has prospects as inculcating online markets where it can sell its merchandise even without bodily contact with their clientele. This makes it possible for immense growth (Torun 7).

Moreover, the availability of worldwide markets is another prospect. Additionally, it faces potential threats like overt competition from both worldwide and local competitors. In addition, for Zara to be competitive and effectual in the worldwide marketplace, the chief success factors are imminent. To highlight on the quality of articles first, Zara has prospected into producing locally whereas its competitors such as Gap outsource and involve themselves in contractual businesses in Asia (Torun 7).

That is the reason behind the prospective growth and quality of Zara’s merchandise. By making its articles cheap and affordable, Zara are apt to control the value chain and minimize costs via recommended logistics and production automation. This shall aid Zara to expand more in the future. Moreover, through vertical integration of controlling all processes of the merchandise, Zara is apt to establish an enhanced communication within its diverse operational units. Therefore, it is able to take critical and ingenious control of its value chain (Torun 7).

This is an immensely consummate competitive advantage for Zara’s current and future operations. In conclusion therefore, Zara’s success is dependent on its integrated business model that ids them to adapt the offer to client’s desires and within a relatively short time. This also aids Zara to quickly adapt and respond to fashion trends above its competitors. Works CitedTorun, Fatma. ZARA - A European Fashion Brand. Norderstedt: GRIN Verlag, 2007. Print.