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(PDF) Applied Corporate Strategy

   

Added on  2021-02-19

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Applied corporate strategy

TABLE OF CONTENTSQ1 External analysis........................................................................................................................3Q2 Internal analysis.........................................................................................................................7Q3 Evaluation................................................................................................................................11REFERENCES..............................................................................................................................14

Q1 External analysisPresent report is based on Zara company which is a one of the most popular brand in theclothing industry. Clothing industry has grown its market share by approx. 5.46%. it is a veryhuge industry where fashion keeps on changing. To sustain in the market company need toproduce latest trending clothes as per the changing need and demand of the customers. Zarastarted in 1975 and remained loyal with its core values i.e. clarity, beauty, sustainability andfunctionality. The objective of the company is to attract customers by bringing fashion andenhance the quality of service (Rugman and Verbeke, 2017). The strategy of the company iscustomer based i.e. to make a long lasting relation with its customers and respond to their ever-changing needs and respond to customer feedbacks and enact to the new trends. Externalanalysis will show PESTEL, 5 force and SWOT of Zara. PESTEL: This analysis will show the opportunities and threats of the company.Political factor: This is the most important factors which affect all the companiesthrough change in the political policies. Political instability results in the change in theeconomy. Zara faced problems due to change in political environment such as difficultyin supply chain which affect the distribution channel of company. This is a big threat tothe firm. Company has overcome this problem by limiting supply chain to itsneighbouring countries.Economical factor: Due to change in the policies and procedures of the country, itchanges the rates of interest, inflation and foreign exchange. Fast growing economy ofSpain is in favour of Zara, company found an opportunity to increase its overall sales inthe clothing industry (Poplawska and et.al., 2015). There was high unemployment due tohigh population, Zara identified the problem and provided employment to people at lowcost which reduces the price of a product and attracts customers. Social factor: These factors are one of the most essential element that need to be takencare as a part of CSR activities. Company need to produce according to the social trend.It is the responsibility of business to keep society happy. Company also need to take careof cultures while making a product. Zara also research about the new market, culturesbefore making a products. Firm has an opportunity to attract new customers by providingthem products and services according to their need.

Technological factor: Technology is changing rapidly in terms of communication,transport and other aspects (Cooper, 2017). Every part of business is affected by thetechnology i.e. manufacturing, production and supply chain. Zara saw an opportunity andadapted new technology to increase its profits. Company respond to the demand ofcustomer quickly and communicate with the supply chain. Technology has reduced thework pressure thus company manages its inventory properly and provide good customerservice. Environmental factor: Environment is the the concern of every business in the market.Zara has invested in the the environmental factors and ensures that the stores of the firmwill consume less water and energy as compared to other companies. Organisation alsoproduce its garments from recycled wool, organic cotton under the name “join life”.Legal factors: There are many laws which affect the business so company need tofollow. Every business need to be conducted ethically so that it sustains for longer period(Eccles and Youmans, 2016). Big fashion companies like H&M, Zara need to protects itsproducts and designs by copyrights, so that it cannot be copied or misused bycompetitors. Zara is focused on building positive brand image by doing businessethically. Company has also invested in the trademarks and copyrights to protects itintellectual property. 5 force model: This analysis will evaluate the attractiveness of industry.

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