Strategic Management for Zara and Premier Investments

Strategic management

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Executive summary
The report helps in providing recommendations to Zara and Premier Investments Companies of
Australia for reducing their business risk and improving their competitive advantage in Australia.
The recommendation provided is based on innovation, corporate and business level strategies so
that they can build appropriate solutions for reducing the issues faced by them. Considering the
business strategy, the Zara firm should use diversification of products and value pricing
strategies, whereas the other firm should use better targeting and channel differentiation strategy.
In addition, for the corporate strategy, the Zara firm should follow online retailing and packaging
along with marketing strategies while Premier firm should use merger and acquisition and active
presence in social media strategy. Lastly, for the innovation strategy, the Premier Investment
firm follows technological improvement and human sensibility to develop wide range of
products following current market trends. Besides this, Zara should use build bridges and open
source with co-creation prospect strategies as per their innovation strategy for enhancing their
market share in Australia. All these recommended strategies enables both the selected fashion
retail companies to improve their business performance and business profitability in the selected
country market.

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Table of Contents
Introduction.................................................................................................................. 3
Aim of the report........................................................................................................ 3
Background of Zara Company....................................................................................... 3
Background of Premier Investments Company.................................................................3
A summary of the paragraph......................................................................................... 4
Business level strategy..................................................................................................... 4
The business level strategy of Zara................................................................................. 5
The business level strategy of Premier Investments............................................................5
Corporate strategy.......................................................................................................... 6
Corporate strategy of Zara............................................................................................ 6
Corporate strategy of Premier Investments......................................................................7
Innovation strategy......................................................................................................... 8
Innovation strategy of Zara........................................................................................... 8
Innovation strategy of Premier Investments.....................................................................9
Conclusion.................................................................................................................. 10
References.................................................................................................................. 11

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Introduction
Aim of the report
The paper aims to provide recommendation on the business strategy, innovative and corporate
strategy of the two leading fashion companies in Australia. The two companies selected for this
study are Zara and Premier Investments. The main reason for providing the recommendations is
to reduce their problems for higher cost of operations in business as well as the intense
competition rate of the Australian market.
Background of Zara Company
Zara is a Spanish fast-fashion retail chain company that has extended its business in Australia for
enhancing double-digit sales growth. It is considered as the highest and leading international
fashion chains of Australia that sells footwear, clothing and accessories for the people of
Australia. Zara has extended its business in Australia since 2011 and has introduced 18 different
stores at the end of January in 2017. A total number of 1700 employees are currently working in
this firm in Australia that increased the sales rate of Zara by 256.36 million dollars in January
2017 (Heffernan, 2017). Currently, the firm introduced three new stores of which one is located
in the Sydney suburb of Parramatta; others are located in Brisbane and the Gold Coast.
According to the CEO, the firm will increase its staff members by 600 in the upcoming 12
months. It is analyzed that the firm has increased its sale rate every year by 15.5% that increased
the profit at 4.96 million dollars each year. Commitment and quality of fashionable goods
enhanced their growth in this international market.
Background of Premier Investments Company
Premier Investments is an ASX company in Australia that provides clothing goods for the people
of Australia. The company also provide Investments vehicle, but their main income growth is
coming from this retail clothing sector. The CEO and the Chairman of this firm are Mr Mark
Mclnnes and Mr Solomon Lew. In 2018, the firm increased its total revenue by 1.19 billion
dollars and currently 9000 number of employees are working in this company (Premier
Investments, 2019). In Australia, the firm has approximately 600 outlets, and they mainly focus
on the younger age of people, including both men and women. The firm makes fashionable
clothing item so that they can easily attract their chosen consumer base of the Australian market.