Applied Corporate Strategy-Strategic Analysis Report

APPLIED CORPORATE
STRATEGY-STRATEGIC
ANALYSIS REPORT
1

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
External analysis..........................................................................................................................3
INTERNAL ANALYSIS.................................................................................................................6
Value Chain Analysis..................................................................................................................6
VRIO Analysis.............................................................................................................................9
Evaluation of the strategy..........................................................................................................10
REFERENCES..............................................................................................................................14
2

INTRODUCTION
Analysing the external and internal factors is a very important factor for the companies so
that they can decide their strategies and planning accordingly (Shabana, Buchholtz and Carroll,
2017). Zara is a fashion store which is providing the customers with high quality products and
services and is affordable. The report is going to consist of the internal and external factors of the
organization and the factors which are the strengths of the organization so that improvements and
planning of the company can be done accordingly.
External analysis
It is very essential for the organizations to analyse the external and internal factors of the
organization so that they can have a better understanding of the part and decisions for Zara can
be taken accordingly. To understand the external factors of the company it is very important for
the company to understand the
PESTLE
 Political Factors
Zara is an international organization which is providing the customers with the best of
products which is why the company has a huge scope of expanding themselves (Rothauer, 2018).
The political factors are not a problem for the company because there are free trade policies
which are being followed by most of the countries in the world which can be a great advantage
for the company. The company is a Spanish brand which is why the organization is having a
trade with European Union and that is making the company have a lot of profit.
 Economic Factors
There has a strong economic stability in the organization because the products of the
company are affordable and trendy at the same time which is attracting a lot of customers in the
organization which is a great factor for the company (Grant, 2016). The advantage is that there is
low cost labour which is there in Zara which is why the company is being able to have a high
profit margins and that is good for a long run in market. The products of the company are
relatively affordable for the customers which is a great factor for the company and the customers
which can get easily attracted.
 Social Factors
3

The advantage which the organization has is that they have a control on the employees of the
company and the targeted marketing of the company is good because of the experience they hold
in this industry. The company has found comfort for the customers to reach out for Zara by
getting online so that the customers can be satisfied. Zara is innovating and inventing new
designs for the customers so that they can satisfy the customers more and even better so that the
company can have the loyalty of the customers over time.
 Technological Factors
Zara is very innovative in the industry which is a great factor for the company and there is
also a high use of latest technology in the organization so that they can maintain their standards
and the quality of the products (Needles and et.al., 2016). Feedbacks from the customers can be
taken directly and that can help the company to improve and make the products better so that the
customers of the company can be loyal to the company. There is an easier logistics and delivery
processing in the company because of the help of technology in Zara.
 Legal Factors
Zara also has to follow all the rights of the country in which they have expanded so that there
is a balance of the internal with the external factors. The labour and customer laws are
considered very important in the company because they are the backbone of the company and
keeping them satisfied is the most important factor. There are a lot of ideas which come by the
employees of the company as well which is why the employees are given a better environment to
work in and the customers are given all the details about the products so that they can be
satisfied.
 Environmental Factors
Zara is very particular about the resources they are using in the company so that they can use
them wisely which is going to help the company have a better functioning for themselves which
is a very important factor for the company (Strzelczak, 2018). The waste outlet of the company is
being reduced so that the company can have a better functioning and the organization can have a
better functioning for a long run. The garments have to look good and also the trends have to be
followed so that they do not jump from one organization to the other organization.
Conclusion
4