Zara Company Analysis - Essay Example

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Zara Company Analysis

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.

ANALYSIS OF EXTERNAL ENVIRONMENT
PESTEL Analysis
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).
Political Factors
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. ...Show more

Summary

The analysis of the internal market reveals that ZARA 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. …
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