STRATEGY DIAMOND

Zara - A Strategy Diamond based Analysis



Zara - A Strategy Diamond based Analysis

Zara's Strategy Diamond

Retailers frequently use their web presence to show off their products; but they have never (to date) considered giving the consumers a picture of the status of the stock of goods inside the store. This strategy will reinvent online retailing practices.

Arenas

Zara will make use of technology to facilitate customers in online shopping. The maverick development in Zara's online shopping strategy will be to allow customers to look into upcoming fashions that have not hit the shelves as yet; in addition to items that are being bought rapidly and can be expected to go out of stock soon (Tokatli, 2008; Willems, Janssens, Swinnen, Brengman, Streukens & Vancauteren, 2012). The geographic areas covered under this strategy will be established with respect to the regions in which Zara stores are currently operating; as well as joining areas from where customers can be expected to visit the Zara store.

Market segments will not be expanded since doing so will demand channeling resources towards marketing; hence violating one of Zara's oldest principles of business management. All of Zara's currently offered product categories will be integrated in this strategy (Caro, Gallien, Díaz, García, Corredoira, Montes, Ramos & Correa, 2010; Tinsley & Ormsby, 2010). Value creation will take place as a result of the consumers' desire to catch hold of products as soon as they arrive; while simultaneously tempting them to consider the purchase of items that are rapidly running out of stock.

Vehicles

Zara will not need to engage in any new acquisitions or joint ventures for the implementation of this strategy. Licensing and/or franchising will not be necessary (Bhardwaj, Eickman & Runyan, 2011; Caro & Gallien, 2010). However, effective implementation may help Zara reach in a position where other companies might offer to buy license for Zara's content. Internal development will be essential in order for the strategy to become effective and efficient. Coordination between stores will need to be perfect; hence demanding the complete automation of the supply chain.

Differentiation

Consumers will not be given the choice to have their products customized through the web-based service. However, the strategy borrows motivation from the same rationale that drove Gillette to announce a life-span for its blade-based products after decades of operations (Tokatli, 2008; Willems, Janssens, Swinnen, Brengman, Streukens & Vancauteren, 2012). The idea is to tempt consumers and engage them in a race to the nearest Zara store; eventually giving Zara a brand image in which every consumer interested in online shopping decides to visit Zara's website to check out the designs at the local Zara store.

Staging

The project will begin with the development of a clear understanding of the internal functioning of Zara's stores. A virtual team will be formed comprising of representatives from each region in which Zara stores operate (Caro, Gallien, Díaz, García, Corredoira, Montes, Ramos & Correa, 2010; Tinsley & Ormsby, 2010). Another team will be formed to coordinate with the IT department and go over issues pertaining to information and ...