ZARA: History, Product and Services, Pestle Analysis, Porter's Five Forces, Value Chain Analysis

Managing Information and Technology
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Frue,K.,2019

Contents
Describe about the ZARA and include brief history of business, also identifying product as
well as services............................................................................................................................3
Pestle analysis of Zara.................................................................................................................4
Porter’s five force model of Zara.................................................................................................5
Analyse three activities in Porter’s value chain and explain the importance of these activities
for Zara........................................................................................................................................8
Describe that how business could deploy information technology to improve its enterprise
processes and address any kind of issues..................................................................................10
REFERENCES..............................................................................................................................13
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Frue,K.,2019

Describe about the ZARA and include brief history of business, also identifying product as well
as services.
ZARA is based on the major Spanish apparel retailer with headquarters in Galicia, Spain.
Specialise in the selling various kind of clothes and accessories items. ZARA was founded in
1975 by Amancio Ortega and Rosalia Mera. This organization has been currently operate 900
physical stores across UK, including 615 that only sell food items. ZARA has been focused on
the promoting their product and service by using advertisement, website and mobile applications.
It also offers an online fashionable clothing delivery service for potential consumers (Adelaja
and et.al., 2020). ZARA has made its reputation in past decade, adopting the policy of only
selling Spanish made goods. Afterwards, it has been entered into long term relationship with
other Spanish manufacturers. Generally, ZARA employees are raised £5,000 to pay for its
business expansion.
According to the brief history of ZARA, it started life among more than years ago when
Ortega and Mera came to the Spanish. He began as peddler and owned a market stall. Initially, it
is very difficult to establish as successful business. So as implementing strategic approach in
order to target potential consumers towards brand. In global markets, they have already various
competitors, who have established the position in marketplace. ZARA is primarily focused on
the living condition and rising come which means that identified those people who are able the
purchase item. ZARA was facing the tough competition from affordable variety of stores.
Adapting to keep ahead of change pricing system, now selling the different goods up to 5
million. Afterwards, company is helping to improve current offers, discounts and placing
emphasis on the different departments such as accessories, jewelers. ZARA had always sold item
at some extent like clothing which was consider as new things.
ZARA core shops typically feature as selection of company’s clothing, wide range of
beauty, home-ware. These are attracting the various consumer towards brands. ZARA has been
sold various clothing and create an interactive space areas, which depends on the customer
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Frue,K.,2019

demographic, store location. All full line shop features are consider as different format of store
design pattern.
Product and service
Zara is concerned about the different product as well as service in global marketplace.
Generally, company is in retail sale enterprise, especially clothing items and non-toxic clothes.
Moreover, it also offering the clothes items such as women, men, school, kid’s wear and other
kind of accessories.
ZARA also provides the home and furniture item which comprising bath accessories, linen,
domestic appliance and storage items. Additionally, it provide the better items which will be
increasing the demand of electronic items. Through this way, ZARA has been established a
strong brand position while increase productivity as well as profitability in global marketplace.
Pestle analysis of Zara
Pestle analysis is based on the framework or tool that help for identifying the external
environment of ZARA. this factor analyses of ZARA brand and its business tactics. There are
different external factors such as Political, economic, social, and technological. These are
directly impact on the ZARA business (Bensoussan, Mookerjee and Yue, 2020). On the other
hand, Pestle analysis is define as framework which become consider as imperative for enterprise
such as ZARA. also helping in business growth and development.
Political Factor-
In this factor, ZARA has been consider as leading retailer in UK, which representing the
strong brand presence( Frue,2019). ZARA has operates 1000 physical stores all around the world
and headquarters of company in UK. Zara has provided the better advantage, benefits in trade
agreement (Nandonde, 2019). Further, it may support for reducing the sourcing price or cost.
Afterwards, company will utilise the better advantage, benefits of large Spanish market where
examine its current products. Sometimes, it is helping to travel item across multiple countries
without including taxes, tariffs.
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Frue,K.,2019