It further looks at the PR of the company and the major crises that have been facing the company over the years. A comprehensive analysis of the company’s strategy is done to establish the root of the company’s success. Lastly, the paper gives suggestions on how the company can improve its operations in the global scene.Zara is the leading brand of Spanish Fashion Group Inditex and a well- established Fashion Company in the global scene (Zara, 2012). The company was established in 1975 in La Coruna and since then, its growth has been sterling. It had opened branches in major fashion cities including Paris and New York by the year 1990. It was because of their tremendous reputation that Zara Home was opened in the year 2003. In 2007, Zara established their first online shop that specialises in the sale of home products (Inditex, 2012). At the moment, the company operates 1830 stores in different parts of the world. According to recent financial statements, it contributes to more than 64% of Inditex’s revenue (Inditex, 2011). The company distinguishes itself as fast fashion trademark and offers high fashion clothing to reach the public at affordable prices. Zara’s success has been impressive over the years and this paper analyses its external environment, value chain, leadership, strategies and challenges facing the brand name. External Environment Analysis The fashion industry is ever changing due to contribution of companies like Topshop, HandM and Zara (London Business School, 2008). Consequently, factors affecting the clothing industry will influence trends in the high fashion world. In the clothing industry, customers’ preferences vary according to their ages and body types (Keane and te Velde, 2008). Furthermore, the demand for clothing is affected by population size and patterns. For example, an increase in the proportion of pregnant women and birth rate will increase demand for maternity and baby clothes (Suttle, 2011:45). It is important to note that demographic trends are the driving force in the fashion industry. The PESTLE analysis will be used to study the macro- environment and the Porter five forces model to evaluate the micro- environment. PESTEL analysis The fashion industry is characterised by high levels of competition among the top fashion brand names and frequent changes in the customers’ tastes and preferences. PESTEL analysis is used to identify factors that affect the demand of goods produced with regards to the external environment. Political Aspects In terms of the political framework in the clothing industry, workers’ rights and employment regulations are mandatory in the creation of a legal environment in the manufacturing
Zara is one of the proficient players in the world of fashion and the leading brand of Inditex Group. The company’s financial prowess is so remarkable that it has been found to have a great effect the Spanish economy…
Strategic analysis of fast fashion company: Zara BY YOU YOUR SCHOOL INFO HERE DATE HERE Executive Summary Zara is able to successfully outperform competition in terms of sustaining a low cost product provider strategy founded on lean manufacturing philosophy and controlling waste in raw products and finished merchandise.
Zara is a leading fashion retailer store in Spain and most parts of Europe. This company has gained a good standing in the industry by its strategy of fast fashion. The analysis of the external market reveals that the rivalry within the firm is medium to high. This is mainly on account of the fact that the industry is in its maturity stage.
Management of organization is becoming an increasingly daunting task in the contemporary times, this is due to the ever advancing business world and business technology. Effective analysis of internal and external environment explains the working environment and dependency of an organization on certain factors.
The report analyses the strategies both business and corporate strategies that Zara should undertake to maintain and improve the growth of the company. The analysis of the internal and external environment helps to understand how the business operates and what challenges it may face during its operations and how best the company can overcome them.
In keeping with the rapidly increasing business practices within the fast fashion retail industry, Zara can be considered as one of the leading fast fashion retail companies. Zara is widely recognised as the leading fashion retail organisation especially for offering extensive number of quality based high-street fashion products to the global customers.
At present the northern American and the EU nations are looking to comeback from the shock-waves of the economic down-turn. Downward economic trend may have transformed regular clothing purchases into luxury purchases. Major Apparel Companies are looking to establish businesses in the emerging economies.
Zara Case Study. Zara is a leading fashionable apparel company. The company is recognised to possess a superior brand image as well as reputation in the worldwide market segments. In this report, a PESTEL and ‘Five Forces Analysis’ are conducted. The analysis of the external environment has found out the opportunities as well as the threats which are present in the global market segments.
This report is basically a case study of Zara retailer, a Spanish based company, one of leading company in retail of apparel and fashion. The macro level analysis indicates that company is facing several moderate to high level challenges. In terms of its global strategy, socio-cultural, legal, and environmental factors could be the major areas of concerns for it.