Corporate Strategy of ZARA
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Added on 2020-10-23
Corporate Strategy of ZARA
Added on 2020-10-23
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Corporate Strategy
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1External Analysis........................................................................................................................1VRIO Analysis............................................................................................................................4SAF Criteria................................................................................................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
INTRODUCTIONCorporate Strategy can be defined as the strategy prepared by an organisation in order toachieve the goals and objectives of the company along with achieving competitive advantage(corporate strategy, 2019). It also provides the company with pre defined long term vision whichcompanies set in order to create company's value and motivating the workforce in order toprovide customers with the best satisfaction with their products and services. In order tocomplete this assignment, the company chosen is ZARA. This company was established in theyear 1975 and is headquartered in Artexio, Spain. It provides various products to their customerssuch as clothing for men, women and kids and it also provides jewellery items to their femalecustomers (Hickman and Silva, 2018). The assignment will be completed on the basis ofinformation provided in the case study and on the very basis, PESTLE Analysis, PORTER's FiveForces Model, VRIO Analysis and SAF Criteria will be done to know about the current position,opportunities and threats to the company.MAIN BODYExternal AnalysisThe External Analysis of ZARA will be done by making use of PESTLE Analysis. ThisAnalysis is done in order to know about the impact of macro environmental factors on theworking of a company. The discussion of PESTLE Analysis provided as under:Political Factors: These are the factors whose impact is determined on the basis of interventionof government in the working of an organisation. It includes government policies, politicalstability or instability in overseas markets, tax policy, labour law, environmental law, traderestrictions and many more. For example, in Europe free trade agreements can prove to be anopportunityfor ZARA as there are no trader barriers so the company can make possible thesuccessful running of their business. In countries likeBahamas and Gabon, trading is not easyinstead they charge heavy duty and high tariffs which is threat for ZARA. Economical Factors: These are the factors which impacts upon the working of an organisationdue to changes in economic growth, interest rates, exchange rates, inflation, deflation, disposableincome of consumers and many more which impacts not only on the working but also on theincome of that country. For example, in Spain itself the company is having opportunity toincrease its income. It is because of high level of unemployment and high population in the1
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