ZARA STRATEGIC ANALYSIS

Zara Strategic Analysis



Executive Summary

In this paper, we try to focus on the marketing plan. A business strategy explains the plans of a business i.e. how is it planning to succeed in the market. This strategy is planned to make sure that the company is able to evaluate its position against the competitors in the industry. Business strategy helps a business in formulating strategies according to the goals and objectives of the company and helps to target the potential customers. When a company is evaluating its own position, it sees their success factor of the companies that are on top in the industry and tries to formulate strategies and will make it the market leader in the industry. It seeks how it can achieve competitive advantage that will keep it ahead of other companies in the industry. In general, strategic management is a process by which an organization works to determine what needs to be done to accomplish priority objectives, and how they will be achieved. Senior leaders examine the full resources of an organization and its environment to determine an optimal fit to achieve desired end results. In many cases, a three to five year time line is used, with annual monitoring and modification of the strategic plan. In a straightforward explanation, strategy means determining how an organization intends to achieve its goals. The strategic choices may need to include consideration and inclusion of the appropriate HR processes.

Executive Summaryii

Company Overview1

Present Vision, Mission and Corporate Objectives1

Situational Analysis2

Environmental Analysis2

Political2

Economic3

Social3

Technological3

Environmental4

Legal4

Industry Analysis: Competitive Forces4

Bargaining Power of Suppliers4

Bargaining Power of Buyers5

Threat of Substitutes5

Threat of New Competitors5

Existing Rivalry6

Key Factors for Success6

Short Lead Time6

Lower quantities6

Value Chain Analysis7

Elements of marketing communication mix8

Corporate Social Responsibility9

Stakeholder10

Employees as a Stakeholder10

Government as a stakeholder10

Customer as a stakeholder11

Media as a stakeholder11

Shareholders as stakeholders11

Ethical Decision-Making in the Zara11

Generic Strategies12

Strategic Options and Choice12

Ansoff Matrix12

Implementation Issues13

Resistance to Change13

Not Involving the Employees in Decision Making13

Technology14

Recommendation14

Strategy14

Role of Strategy in Strategic Planning15

Conclusion16

References17

Zara Strategic Analysis

Company Overview

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, 4).

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 ...