Business Environment of Zara : Report

BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
1.1 Background of business organisation....................................................................................1
1.2 Discussion of the allocated business environment................................................................2
1.3 Application of an appropriate analytical approach...............................................................2
1.4 Zara company structure and segmentation ...........................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business organisation are the organisations which are developed by the people to earn
profits and provide the best customers services. Some business firms are established to earn
income while other are build for public purposes. Business organisations are of different types
like public, private and voluntary sectors. Zara is clothing company in Spain. It has 2169 stores
in the world and has total revenue of $15.9 billion (Anwar, 2017). In this report, the main
concern is given on the information of Zara. Further, the discussion of allocated business
environment is done. Additionally, analytical approach of the company is studied. Moreover, the
use of appropriate data and exampled are used to define the business environment of the
company.
1.1 Background of business organisation
Zara is the organisation which belongs to Inditex organisation. Inditex company operates
on trade market of Zara retailer which was established in the year 1975. It is located in Galicia-
Spain and operating in 62 countries on global textile and clothing industries. It is famous for
fashion group and has 7,200 stores in the world. The main flagship store of Inditex is Zara but
has owned Massimo Dutti, Zara home, Uterque etc. The organisation does not believe in
producing large amount of products for next season because it gives more concentration on
working on unique business model. It takes regular feedbacks from its customers to replenish
their store with new products (Ayala-Sumuano and et.al., 2017). Further, Inditex new fashion
brands are prototyped in 5 days while Zara take 15 to manufacture new products.
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The company has international presence and works on developing the best products
according to the needs and demands of their customers. Further, its online presence has also
helped it in increasing its sale. It has launched Zara home online retail store which has developed
online websites to provide their services in different countries like Spain, Germany, Italy etc.
Zara online sale grow tremendously and helped in increasing the sale of Inditex (Burns, Mullet
and Bryant, 2016). Inditex has helped Zara to increase its online sale in Netherlands. Belgium,
Australia etc.
Inditex has adopted market strategy which mainly focuses on the prime location. It has
analysed local market environment and examined the niche opportunities. Main competitors of
Inditex are H & M and GAP. They are providing various brands including fashion and clothing.
Wide variety of products have given tough competition to Inditex and Zara. H & M has 3,450
stores in the world. Though Zara has many competitors but it is the leader in the development of
fast fashion trends. The overall sale of the company in 2014 is $19.7 Billion as compared to H &
M. Further, the overall sale of Inditex is increased by 8% as compared to its competitors.
Background of country:
Zara entered in Germany in the year 1990 on 50-50 joint venture. Germany has the
largest population ratio in the entire Europe. It has two legislative bodies that is Bundestag and
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Illustration 1: Structure of Zara