Today, Inditex manufactures more than million garments annually via 6, stores in 85 different countries. Those statistics will be reshaped in short time, however, as Inditex adds to its collection of stores at an astounding rate of stores per year.
LinkedIn Introduction The paper attempts to describe the problems faced by Zara along with the detailed case analysis. Furthermore, the paper provides an environmental analysis through PESTLE, along with the globalization strategy of the company.
Lastly, recommendation is provided for the problems which have been discussed. Problem Statement Despite of the profitability for the company as Zara has achieved consistent increase in its net income,however, the management of the company is deciding the future growth of the company in sustaining the particular core competitive advantage.
The company wants to develop a sustainable business environment which is least affected by the micro and macro environment. The stock prices are the research which has made the founder of Inditex, the parent company for Zara, as the richest person in Spain. Furthermore, the scope of the company have been much broader in the clothing retail sector than its competitors as Zara has the highest percentage of company-owned stores.
The company is able to achieve a cost leadership strategy as it aims at decreasing the cost through establishing factories in the low labor cost region, along with implementing strategies which are environmental friendly and are sustainable.
The other competitive advantage for the company includes its ability to innovate, design, and identifying the future trends of its consumers so that it could develop clothing according to their needs and desires.
Weaknesses The production facility for the company is established in the Spain region, therefore due to the increase in distance for a target country for the Spanish region, higher cost will be incurred. The product price may also differ in different parts of the Europe which may create disadvantage for the company.
Furthermore, the company has very little spending for its marketing activities as compared with its competitors. This creates a disadvantage for the company in creating awareness amongst its consumers,however, the company is highly dependent on its goodwill and word-of-mouth activities due to which it has allowed Zara to achieve greater success.
Since it could be considered as the strength of the company, however,it can easily be exploited by its competitors. The company has only one manufacturing and as well as distribution center.
Any political riots or supply chain issues in the country would disturb the entire chain of its many stores. Opportunities Zara would need to increase its brand awareness in the United States region so that it may increase its global presence on the region.
Furthermore, the company also shall increase its distribution and manufacturing networks. These manufacturing and distribution facilities shall be created on the basis of low labor cost, low political barriers, being center of its various exporting countries, and due to lower overall production cost.
Threats The number of stores present in the European region is higher which has created a saturation point for the company and in gaining maturity stage in the market. Although there is a positive flow of the revenues in present, however,in the future itmay create concerns for the company if the market of retail clothing became saturated as the company would be covered in losses.
Furthermore, the company would fall in trouble when there shall be an increase in the political disturbance in Spain which could disturb the supplies across the globe. The company would need to urgently seek new production facilities…………………… This is just a sample partial work.
Please place the order on the website to get your own originally done case solution Related Case Solutions:Zara Fast Fashion: Case Study. Print Reference this.
Disclaimer: Zara design teams tracked customer preferences and used sales information such as sales analysis, store trends and product life cycle information from the store managers, based on a consumption information system to transmit repeat orders and new designs to .
A case study of Zara's business operations. Including Zara's location strategy, Zara's advertisement strategy, and Zara's supply chain logistics. People worldwide are largely engaged and attached with the web technology and Social media platforms. By the same token, businesses start looking at such technologies as effective mechanisms to interact more with their customers.
As a follow-up to Tuesday’s post about the majority-minority public schools in Oslo, the following brief account reports the latest statistics on the cultural enrichment of schools in Austria. Vienna is the most fully enriched location, and seems to be in roughly the same situation as Oslo.
Many thanks to Hermes for the translation from schwenkreis.com CASE STUDY CONCEPT: Zara’s Unique Business Model is Driven by Its Supply Chain Capabilities. Zara changes its clothing designs every two weeks on average, while competitors change their designs every two or three months.
Amancio Ortega founded Zara in as an attempt to better understand world markets for his fashion merchandise. From that first store in Spain, Zara has since expanded to more than 2, stores in 96 countries around the world. As a follow-up to Tuesday’s post about the majority-minority public schools in Oslo, the following brief account reports the latest statistics on the cultural enrichment of schools in Austria. Vienna is the most fully enriched location, and seems to be in roughly the same situation as Oslo. Many thanks to Hermes for the translation from schwenkreis.com Fashion industry is an international and highly globalized industry, with clothing often designed in one country, manufactured in another, and sold in a third.
ZARA Case Study Solution 1. Introduction A business vision for specifically Zara, a fashion based products offering company is, Demand management is done by supplying directly from Zara, Spain. A fast.