logo

Analysis Of Corporate Strategy Of Zara

   

Added on  2021-02-21

19 Pages4256 Words185 Views
APPLIED CORPORATE STRATEGY

Table of ContentsINTRODUCTION...........................................................................................................................3Overview of Zara.........................................................................................................................3Question 1 External analysis in order to identify the set of opportunities and threats................3Question 2 Analysis of resources and key competences of the organisation..............................6Question 3 Strategy evaluation....................................................................................................9REFERENCES..............................................................................................................................13

INTRODUCTION Corporate strategies are the corporate actions applied by organisations to achieve goalsand attain competitive advantage. The strategies are incorporated to accomplish long-termobjective and vision. This assessment is based on the ZARA company which is Spanish basedretail company. ZARA was founded in 1975 by Amancio Ortega and Rosalia Mera. The reportwill focus on deriving feasibility, suitability and accessibility of Online strategy of the ZARA onthe basis external and internal analysis. External analysis will be done with the help of PESTLEstrategic analysis and Porter 5 force analysis. Internal analysis will be based on resource andcompetencies of company which will be presented with the help of VRIO analysis. MAIN BODYOverview of ZaraZARA is clothing and accessories-based store of retail industry. It is Spanish based retailstore founded by Amancio Ortega and Rosalia Mera in 1975. This is one of the largest apparelretailers in the world. The growth strategy of company is focused on online operations toimprove the customer satisfaction. The organisation has Radio Frequency identificationTechnology in its all stores to identify and track the location of the garments instantly whichhelps the entity in meeting demand of its customers (Rugman and Verbeke, 2017). Further,ZARA's Join life and eco stores are the two examples that shows improved in store customerexperience.Question 1 External analysis in order to identify the set of opportunities and threatsPESTLE analysis is done to outline threat and opportunities of business which can arisedue to political instability, economic fluctuation, society preference, technological advancement,legal governance and increasing environmental concerns. Analysis of opportunities and threat ofZara on the basis of changing trends of fashion retail industry is discussed below:Political factor – Dynamics of political factors impacts profitability and revenue offashion retail industry. The changes in regulations impacts buying habits of shoppers andinternal trade laws (Kharub and Sharma, 2017). Political influence on fashion trends likePETA boycott against organisations who use real skins and furs. The instability inpolitical factors of fashion industry is threat for establishments like Burberry, ZARA,Dorothy Perkin, etc. The restriction over use of material limits innovation ability ofcompanies is directly related to reduced customer preference (Keyes, 2016). Apart from

this, branches of retail stores in other countries denotes the need of abiding tointernational polices which is opportunity for the fashion retailers. Compliance withinternational legal requirements like Antitrust laws, data protection, etc. demonstratechance for business to expand online and offline business operations.Economical factor: Recession of 2008 led to tremendous ups and downs for fashionindustry and organisations are still recovering from it. Regardless of economic fluctuationthe industry is growing at fast pace because of buyer’s willingness to spend on fashionclothing and accessories. Preferences of people for rental clothing, discounted stores areincreasing because of low-income group and high unemployment rate (Keyes, 2016).Changing preferences and online discounts in fashion industry is opportunity for growthand expansion of retail companies. In accordance with increased investment of people offashion clothing and accessories it can be articulated that by 2020 the industry may leadto sales of 20 trillion $ which reflects increased economic contribution.Social factor: Preferences of people is majorly influence by promotion of products likevia social celebs, musicians, etc. Marketing in fashion industry is an opportunity forretailers to gain buyers attention and promote sales. Further, offering products onlineshapes the pattern of offering services where consumer can review prices and discountsand make decision. This is a growth opportunity for fashion retailer to enhance marketshare and outline different target market according to their buying pattern (Grinblatt andTitman, 2016).Technological factor: Fashion retailers are using variety of technological tools whereonline shopping is dream of so many people. Internet has sparked ability of fashioncompanies to open store and sell own designed clothes.For example, GirlBoss SophiaAmoruso started buying and selling clothes on ebay few years back and ow its net worthis about 300 million $. In accordance with this, it can be said that offering fashionclothing and accessory is big time opportunity for the retailer to maximize growth,market share and profitability. Social media advertising is also an opportunity for fashionretailer to market their trending clothes and accessories. This helps the firm inminimizing impact of competitors and substitute products (Gürel and Tat, 2017).Legal factor: Meeting legislative requirement of foreign countries can be a biggest threatwhen expanding, proving and setting up a business. Data breach and Antitrust is the

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Assignment - Analysis of Zara
|13
|3971
|256

Managing a Successful Business Project Assignment | Zara
|27
|5758
|237

Applied Corporate Strategy
|24
|4558
|482

Zara Micro Environment Analysis
|7
|1984
|86

The Strategic Management Analysis of ZARA
|64
|16204
|1069

Zara: Global Marketing and Online Business Practices
|13
|4140
|102