ZARA

Marketing & Stakeholders

Marketing & Stakeholders

Introduction

Zara case, begins in the 60s, Amancio Ortega, today its CEO, clothing salesman was behind a counter, with only primary studies has managed to raise a business empire, which by its incredible growth, and its elaborate organizational machinery all fields, has risen to become to be one of the most studied in the most prestigious masters.

The first step was a modest business of baby clothes that her sister sewed at home while another brother was travelling to fairs selling by the Galician cities. Then came a factory gowns and baby clothes with a handful of employees. The business grew, and in 1974 opened the first Zara store, which had little to do with their current sisters, because, among other things, the clothes sold are purchased from third parties. Gradually they began to sell self-made clothes as they made their stores by the four Galician provinces. The happy idea of ??jumping out of Galicia came in 1980, when they believed they could achieve an efficient distribution system.

Analysis of the organisations current Marketing Environment that includes the marketing situation, functions, orientations and the concepts?

The business model of the owner of Zara is to offer the latest fashion with quality and value. In its stores there are two new collections per week and get to design, produce, distribute and sell their collections in four weeks, while competitors take several months. In addition, the group does not spend a single euro on advertising (Lynn, et. al., 2009, pp. 4-12).

The ability to understand the business of fashion, according to the taste of consumers, is "the great advantage of Inditex against other competitors, but a great idea excellent planning needs to be successful.

While main rivals Inditex-GAP, H & M and Benetton-not manufacture their collections, the Spanish company is vertically integrated, which gives flexibility and responsiveness. "

In addition, Inditex has stores, while one of its main competitors is Benetton, manufactured dynamics of small factories, franchising its stores to third. But Zara maintains control over the point of sale and allows you to be in direct contact with the customer.

The Swedish manufacturer Hennes and Mauritz (H & M), principal competitor of Zara increased its net profit by 33 percent in the first nine months of this year. The main competitor Inditex group attributed these results to a better control of the surplus. At present H & M have 1,134 establishments worldwide. For the fourth quarter, H & M plans to open 70 new stores, mainly in the U.S. and Canada, and close another ten. In addition, the textile company is studying the possibility of selling items by mail and via the Internet in the Netherlands.

Another direct rival Inditex's Gap. The U.S. firm made a profit of 1,150 million dollars (955.7 million Euros) in fiscal 2005, which ended in January, representing a rise of 11.7 percent. Sales amounted to U.S. $ 16.267 million (13.519 million Euros) in the same period by 2.6 percent (Marketing Mix, 2012).

Define the relevant stakeholders and their importance for the organisation, also develop Objectives that would help the organisation to priorities the stakeholder groups ...