This is mainly on account of the fact that the industry is in its maturity stage. The analysis of the internal market reveals that the company is faring well because of its strong supply chain and its vertical integration. As the company is expanding operations, it needs to reviews its strategy. The analysis leads up to two feasible strategies for the company, namely global expansion and introducing a new plus size in the product range. This report presents these strategies in more detail. PESTLE Analysis is a widely used analysis to understand the external environment of the company. It is an acronym for Political, Economic, Social, Technological, Environmental and Legal factors that have an impact on the overall operations of the organization (Henry, 2008).
Since companies operate within a certain geographic boundary or boundaries, the government has an impact on the company. It impacts through the laws and restrictions placed on the companies. Since Zara operates mainly in Spain and the UK, which falls within the EU countries therefore the political landscape of this area should be understood. The EU is beneficial for the company as it has made the entire region work as a local market. This allows the company to get fair advantage in the entire EU market.
This marketing report presents a set for recommendations for the fashion retailer, Zara. These recommendations are based on the analysis of external and internal environment. The analysis of the external environment relies on theories such as the PESTLE Analysis and Porter’s Value Chain Analysis. The analysis of the internal environment relies on the analysis of the company using Resource/ Capabilities Analysis and Value Chain Analysis.
Zara is a fashion retailer owned and operated by the Spanish company, Indetix Group. This fashion retailer has introduced a different strategy within the fashion market that goes against the existing strategies of the fashion industry (Anon, nd.). Despite this, or rather on account of this, the company has managed to record profitable growth since its inception. However, in order to pursue further growth, it is necessary to analyze the current strategy. ...