Evaluate Zara Online marketing Strategy
Added on 2020-12-30
15 Pages4025 Words154 Views
Business Development
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Evaluate Zara Online Strategy
Table of ContentsINTRODUCTION...........................................................................................................................31 Discussing business environment and assessing industry attractiveness............................32. Identify and discuss organisation’s resources & unique capabilities.................................53. Choose a recent strategy that company undertook and evaluate it using the three SAFe test9CONCLUSION..............................................................................................................................11REFRENCES.................................................................................................................................12APPENDIX....................................................................................................................................13
INTRODUCTIONOnline strategy is adopted by business to go online and utilise online and web approachesfor marketing, communicating and engaging customers through a proprietary website. It isbasically a strategic plan to that is adopted by organisation in order to create and develop onlinepresence of their operations by adhering over all business development strategy (Munthiu andet.al., 2014). In this report organisation chosen is Zara, a Spanish fast fashion brand of clothingand accessories retailer in Arteixo. Its products are supplied all over based on consumer trendand it has highly responsive in supply chain ships of its new product to its store twice a weak.This report is going to analyse its business environment in order to identify number ofopportunities and threats and industry analysis that has been applied to access industryattractiveness. Moreover, identifying and discussing resources and capabilities that help to attaincompetitive advantage. Furthermore, adopting SAFe tests to evaluate company's strategy. 1 Discussing business environment and assessing industry attractivenessIn today's context business environment is a collection of all individual, entities and otherfactors which may or may not be control by an organisation. But it ultimately affectsperformance, profitability, growth and sustainability in competitive market place. Eventually, anorganisation wants to operate in an distinctive environment as business cannot exist in isolationfor longer period of time. Herein, ZARA mangers have adopted PESTLE analysis in order to itthreats and opportunities from business environment.PESTLE Analysis of ZARAPESTLE analysis is a framework in an analytical tool that is adopted by an organisationto identify key drivers of change in strategic environment (Zara and et.al., 2012). This analysisis done to identify macro (external) forces that are faced by an organisation.Political Factors: Political factors determines extent in which government and its policies mayimpact on organisation or a specific industry. Herein, ZARA managers have its impact both inpositive and negative manner such as:Opportunities: With free trade agreements ZARA has boost its sales and its overall salesgroup. Such as with such instance goods can move freely between European countries with notariffs, no restriction on quality or quantity of imported or exported goods to other countries.
Threats: ZARA are operating over all worldwide. Herein, they are facing manygovernment interventions with their rules and regulation of different operating countries such ashigh tax rate, inflation rate and exercise duty on importing and exporting goods and services.Thus, it creates threats for ZARA in operating at worldwide.Economic Factor: These factors impact on economy and its performance which ultimately turndirect impact on organisation and its profitability.Opportunities: ZARA is one of the fast growing environment in clothing retail industry.It has one of the biggest brand by astonishing high level of unemployment opportunities, lowlabour cost, production cost and high quality product with reduced price which leads to attractmore customers towards it. Thus in this way they are creating opportunities in competitivemarketplace.Threats: Due to European counties ZARA has affected with high depreciation with highinflation rate as well increased cost of living which results into less income for customers. Thus,it affected its sales and overall profitability of its appeal and clothing industry.Social Factor: Social factors indicates social environment that help in identifying emergingtrends of customer's need and preferences (Sharma and Sahni, 2015). It includes demographic,education levels, cultural trends and buying pattern of consumer. Impact of social factor inZARA are;Opportunities: ZARA is increasing is productivity and profitability by the urge ofcustomers form its online shopping app. Moreover, with ability to compare its prices from otherand this has proven to be success in overall sales. Thus, in this way there are creatingopportunities to attract more customer's towards its product and services.Threats: ZARA are operating in many countries around global. Herein, they are facingproblems such as diversified cultures and new market trends in operating counties. They need toidentify culture and market trend according offerings should be made for different cultures.Technological Factors: This factors includes technological innovation and development thataffect market such as changes in technologies, method of distribution and manufacturing product(Gamboa and Gonçalves, 2014). Technological factor that impact on ZARA profitability are: Opportunities: With the adoption of advance tools and technologies Zara has augmentedretail technology which allow customer's to see how models wear specified pieces of clotheswith new approach of sensors with smart phones somewhere in stores. Thus, in this way
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