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HI6006: Competitive Strategy of Zara and Adidas

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Competitive Strategy (HI6006)

   

Added on  2020-03-04

HI6006: Competitive Strategy of Zara and Adidas

   

Competitive Strategy (HI6006)

   Added on 2020-03-04

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Running head: COMPETITIVE STRATEGYZara and Adidas competitive strategies Name of the StudentName of the UniversityAuthor Note
HI6006: Competitive Strategy of Zara and Adidas_1
1 COMPETITIVE STRATEGYZARAZara is a brand that is of Spanish clothes and accessories. Amancio Ortega andRosalia Mera founded Zara with its headquarters in La Coruna, Spain in 1974. Zara wasinitially a little store in Spain but now it is the world’s largest retailer. The reason behindchoosing this particular brand is that it gradually enlarged its business from the town in Spainto the other parts of the country and then succeeding in Portugal. However, by 1990 itenlarged its stores in United States, France and maximum of Europe. Currently, Zara hasalmost 6500 stores covering 88 countries all over the world (Vu and Medina 2014). Zara’s business strategy is very understandable which is that the brand should beplaced among the customers in such a way that the customers actually gets scared that theywill be getting or not the selected product till they visit the store another time and so they buyit instantly (Reeves, Love and Tillmanns 2012). Zara has strategies for both production andsupply as well as for the brand positioning. Zara owned few of its factories and has anextensive range of outside vendors who helps this brand to create a model and to get it readyfor trading in its stores globally. On the other hand, its business model expends nearly zeroamounts for its digital marketing. They routinely do advertising posts of one of their designsfor a minimum duration until assembling viral bunch of people who will further spread thepromotion (Gamboa and Gonçalves 2014). Its strategy comprises of fast fashion that stateshaving an international fashion spotter feedback structure which starts from the loweremployees who need to quickly enhance upon its prevailing clothing lines. The new designsare then dispatched to the makers of Asia and Europe who will receive this feedback onto anew line of clothes that are ready to vend within a week. Zara has also strategized for asupply chain, as it never outsources anything to Chinese manufacturers. With the help ofapproachability of inexpensive Spanish, Asian and Middle Eastern labor Zara can actually
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2 COMPETITIVE STRATEGYput up its new products in store that to within a week. Zara mainly centers on fast fashiongoods being manufactured in and throughout Spain and outsourcing additional shelf lifecommodity to inexpensive labor markets (Petett 2013). Lastly, its strategy for Store Fronts iswhere Zara actually invests money for renting high values for setting up stores beside luxuryclothing brand. The business model is flawless in terms of the design to vent the planningwhich leads to the enormous cost saving and also in terms of positioning their brand as apremium one actually helps them profit outstanding traction with the middle class buyersfrom the mall of the country. Moreover, Zara using the CAGE frameworks would be a wasteas Zara has its head office in every country that they work in. Zara uses the ‘oil spill’approach where they put a head office in every country and then branch out to open newstores. Thus, the transportation costs are also cheaper and so they grow a sense where theybring out what the customers are looking for (Collis 2015). AdidasIn 1949, Adolf Dassler founded a shoe factory along with his brothers. However, laterhe parted away from his brothers and enlarged this company alone. The company’sheadquarters is situated in Herzogenaurach, Germany. The reason behind choosing thisparticular brand is that Adidas has placed itself as a leader in the global market with morethan 92 fresh companies and being the 61st ranked brand amid the world’s most costly brands.It is famous globally for its products that are mainly related to sports. It has ultimately led toa powerful battle with Puma that was evolved by Adolf’s brother (Subotnick 2017). The business strategy of Adidas until 2020 is called ‘Creating the New’. At themiddle of creating, the new there is also an aspiration in addition to increase growth byremarkably enlarging desirability of the brand. Therefore, this strategy concentrates on thebrands as they associates and engages with the customers. Adidas has a customer-centric
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