Strategic management of Zara, Australia

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STRATEGIC MANAGEMENT
Strategic management of Zara, Australia
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STRATEGIC MANAGEMENT
Table of contents
Post 1..........................................................................................................................................2
Introduction............................................................................................................................2
Pestle analysis of ZARA........................................................................................................2
Conclusion..............................................................................................................................4
Post 2..........................................................................................................................................4
Industry analysis.....................................................................................................................4
Porter’s five forces analysis of Zara.......................................................................................4
Conclusion..............................................................................................................................6
Post 3..........................................................................................................................................6
Internal analysis.....................................................................................................................6
Key resources.........................................................................................................................6
Competencies.........................................................................................................................7
Capabilities.............................................................................................................................7
Strengths and weakness..........................................................................................................7
Post 4..........................................................................................................................................8
Business level strategy...........................................................................................................8
Cost leadership.......................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................11

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Bibliography.............................................................................................................................12

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Post 1
Introduction
Zara has achieved accolades and glory by emerging as the world’s largest apparel
retailer. With its headquarters in Spain, the brand has its outlet in 7475 locations worldwide
including Portugal, New York, France, Mexico, Athens, Belgium, Sweden, Malta, Nicosia,
Norway, Israel, UK, Turkey, Emirates, Kuwait, Lebanon, Japan, Argentina, Venezuela
among others. The brand operates under the parent company, Inditex (Zara.com, 2018). As a
matter of specification, the brand deals in clothing. According to the annual report of 2016,
the revenue earned by Zara has been recorded as US$9 billion annually.
Pestle analysis of ZARA
Political Financial regulations
Foreign direct investment
Political instabilities
Economic Cost cutting strategies
Inflation
Recession
Social Cultural influences
Technological Social media marketing
Legal Employment legislations
Environmental Sustainability
Table 1: PESTLE analysis of ZARA
(Source: Zara.com, 2018)
The government plays an important role in Zara’s business operations. However,
different governmental agencies do not have the same outlook regarding the operations of
Zara. Most of these agencies lack the access to the foreign direct investment. Political