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A Strategic Analysis of Zara: The Fast Fashion Leader - Essay Example
Pages 17 (4267 words)
A strategic analysis of Zara: The fast fashion leader BY YOU YOUR SCHOOL INFO HERE DATE HERE EXECUTIVE SUMMARY Research has shown that Zara maintains many competitive advantages over major competition such as H&M and the Gap. These advantages are apparent in the ability to maintain a low cost leadership strategy that provides customers with lower-priced merchandise…
Zara is also successful in ensuring barriers are established for new market entrants through self-operated manufacturing capacity and logistics strategies that cannot be rivalled without substantial capital investment. Weaknesses in the model were identified by conducting a comprehensive European/global environmental analysis of the competitive industry as well as through examination of Zara’s current business model. Weaknesses lie is in isolating the company from negative publicity, which has been a large problem recently with accusations of the company being supportive of sweatshop labour conditions with foreign suppliers. Additionally, research has identified weaknesses involving a lack of focus on more relevant, behavioural marketing strategy development as well as the company not maintaining proper focus on building more independent supply and logistics networks that would be owned by Zara to improve its scope of control. Because of these weaknesses, it is recommended that Zara consider repositioning the business to a premiumisation strategy as a new business level strategy, diversifying self-managed manufacturing and logistics capabilities, and focusing on promotion that is more consumer-centric. ...
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