Case Study on Zara - Assignment

Title : ZARA

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1-...........................................................................................................................................1
Explaining the role of an acquisitions and merger and analysing the key point analysis of the
businesses...............................................................................................................................1
TASK 2............................................................................................................................................6
Analysis and evaluation of chosen business or international operations...............................7
Analysing the way Zara addresses the key as well as current issues in international operating
environment..........................................................................................................................16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
International business plan is the set and systematic plan for the business that grow up the
business opportunities in the global market. Business organizations developed plan with their
aims, objectives along with resources and determine in which market they will enter. In such
process, company enters into international market with their product or services to reach the
clients/customers. The purpose of the new business plan is to prepare company to enter into the
global market place to maximize the profit and global reach. Such present chosen company Zara
will plan to explore the business opportunity and launch the new product in the Asia market.
Further, report will explains the role of acquisitions and merger to analyse the consultancy
outputs in the great context. The aim of the study is to describe the internationalisation strategy
in order to using a variety of analytical frameworks which is looking at both management
specific factors. In order to analyse the market opportunities and threats of the business
environment study applying the marketing models as well such as PESTLE, Mackenzie seven,
Smart objectives, macro and micro analysis about the strategic business units.
TASK 1-
Explaining the role of an acquisitions and merger and analysing the key point analysis of the
businesses
Merger and acquisition is a general in terms of using describe the consolidation of
companies or assets through various types of financial transaction including merger, acquisitions,
consolidation of companies or assets through various types of financial transactions. In order to
take over the business of other is known as Acquisition. Or on the other side, when two
companies mutually ready on the set standards this is called mergers. In order to get the global or
international market most of the company take help of such methods either they take over the
other company or they merge with leading companies.
In order to take this research further here is the brief summary or introduction of the
chosen company.
Overview of the company
ZARA is the international brand based in Galicia. ZARA deals with range of products in
clothing, accessories, shoes, swimwear, beauty and perfumes. This would help to continue the
work opportunity and goals. It is the most branded and premium brand in clothing industry that
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always come up with new trends and fashion which is unique and distinct. Inspired story of the
business is said by Edison that ZARA has be expand from the Spain market to the other market.
ZARA is the most effective and attractive brand which is also demanding and favourite for the
people. ZARA known for its eco friendly company culture because company invested in solar
panels and wind turbines in the main office. There one thing about ZARA that is surprising
which requires to be more energetic and effective besides that it will help to continue the work
outcomes and effectively done in precise manner.
ZARA has stores in more than 88 countries with just over 6500 outlets. Zara has
flagships stores on Fifth Avenue in New York, Oxford Street in London. Zara has their own
mobile application app through they provides their product or services. In the context of the
business products or services so the ZARA sells to both women's or men's with high range of
effective learning outcomes and business opportunity.
ZARA has planning to offer Bathroom sleepers for both men's or women's. As per the
reports Zara India rise 72% profit in the financial year of 2018 (Financial Express, 2018).
Annual report of Zara Company
It has been identified by the Zara Annual Report 2018, that Zara focused on its core
priorities in order to integrated supply chain management, socially responsible towards the
customers and societies also it maintained the excellence in its products as well. However, Zara
overall performance in 2018 was very nice in terms of fully integrated with digitalisation & fully
sustainable growth. Zara revolutionised its customer purchasing habits which shaping new
expectations for products. In past 6 years Zara has invested more than €9.4 billion on the
company's growth and transformation, €2 billion of that total sum been earmarked to introducing
ground breaking technology into the model. Therefore, In 2018 Zara has almost raised capital
expenditure to €1.6 billion.
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Economic Scale of Zara
Spanish fashion brand Zara Economic scale quite excellent. Zara is famous for its rapid
changes in the fashion styles and come up with the new styles and trend. It spread its reach
across the world. Zara is the leading brand from the other brands like H&M, Gap, etc.
Positioning of Zara as compare to other brands
As compare to other brands like H&M, M&S Zara makes the customer experience king
because its capitalise on the store experience by continuously offering reasons for customers to
visit the stores and catch the trendy collection from the store. Unlike other brands Zara exchange
with customer for value because Zara having the unique understanding of the entire value
proposition it exchange with the customers. Zara is not the cheapest in the fast fashion arena but
they delivers the high quality standard value products with high appealing prices.
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Illustration 1: Price performance
(Source : Annual Report. 2018)