ZARA

ZARA

Table of Contents

INTRODUCTION AND KEY ISSUES3

PRESENT VISION, MISSION AND CORPORATE OBJECTIVES3

At The Store4

With The Product4

SITUATIONAL ANALYSIS4

Environmental Analysis5

Political5

Economic5

Social6

Technological6

Environmental6

Legal7

INDUSTRY ANALYSIS7

Competitive Forces7

KEY FACTORS FOR SUCCESS9

1.Short Lead Time9

2.Lower quantities9

3.More Styles10

INTERNAL ANALYSIS10

Generic Strategies10

Value Chain Analysis11

BRIEF SUMMARY OF CURRENT SITUATION ANALYSIS11

1.Strengths12

2.Weaknesses12

3.Opportunities13

4.Threats13

STRATEGIC OPTIONS AND CHOICE14

Ansoff Matrix14

IMPLEMENTATION ISSUES15

i.Resistance to Change15

ii.Not Involving the Employees in Decision Making16

iii.Technology16

CONCLUSION16

ZARA

Introduction and Key Issues

Zara has been the trend setter in the fashion industry. Since the launch of the company, it has been very successful. The company has been successful because of the technology that it has adopted. The company's success depends on the blend of the technology that the company has adopted and has been able to break all the rules that the fashion industry was following. Vertical integration has made the company earn a lot of profits and remain ahead of its competitors in the market. This was due to the fact that the company was able to reduce its cost and increased the barriers for the potential new entrants in the industry, which is why; the company is the market leader in the industry (Lindsay, 2004).

Zara's position in the market is due to the strategies that the company has adopted. The company has policies that are making it the leader. The profits of the company tripled in the years between 1996 and 2000 and have even increased between the years 2001 to 2007. The company has been earning revenues from $2.43 billion to $13.6 billion in these years, and this is the reason the company was able to move ahead of the market leader, Gap.

Present Vision, Mission and Corporate Objectives

The company has a different vision and mission for their store and their products. The store of the company benefits the business by the following ways. It helps them to recognise the need of the business also helps the company in earning more that it according to the objectives set by the country. The country's corporate objectives are according to the mission and vision of the company, and they are as follows:

At the Store

-We save energy.

-The eco-friendly shop.

-We produce less waste, and recycle.

-Our commitment extends to all our staff.

-An environmentally aware team.

With the Product

-We use ecological fabrics.

-Organic cotton.

-We manufacture PVC-free footwear.

The company's objectives ensure that the company reduces its cost of doing business and makes sure that the way it does business is according to the company's objectives. The objectives mentioned above clearly show how the company is able to reduce cost and how it makes sure that the company is different from the others in the industry. People who are related to the business are ensuring that they do not work in a way that does not complement the vision and mission of the company (Helft, 2002, 41).

Situational Analysis

The situational analysis of the company means that the company evaluates the situation in terms of the three C's related to the business. These three C's consists of Customers, companies, and competitors. The company makes sure that it carries out an extensive analysis of the situation, as well as, the ...