Retail Theory and Practice : Zara
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Added on 2021-02-20
Retail Theory and Practice : Zara
Added on 2021-02-20
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RETAIL THEORY AND PRACTICE - ZARA
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Introduction to Retail..............................................................................................................12. Introduction to the Company..................................................................................................23. Changes within the UK fashion retail - PESTLE Analysis.....................................................24. Changes within Micro environment - SWOT Analysis..........................................................45. Strategics tactics that can be used...........................................................................................56. Recommendations...................................................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8APPENDIX......................................................................................................................................9
INTRODUCTIONRetail refers to the business who majorly deals in consumer goods by multipletransmission of distribution. This industry generally sells finished goods to the customers inconsideration to reasonable prices. The study is based on Zara. It is a Fashion retailer Company.It majorly deals in fashionable clothing and accessories.The Project report will explain the changes within the UK fashion retail throughconducting Pestle Analysis. It will explicate the changes within the micro environment with thehelp of Swot Analysis. Furthermore, report will discuss and suggests the strategies tactics byusing theory of retail. It will provide necessary recommendations that can be used by thecompany. Lastly, it will provide conclusion. MAIN BODY1. Introduction to RetailThe word Retail is being derived from the French word, where Re stands for “to cutgain”. Thus, it is simply means to cuts off the smaller portion of the goods from the large lumps.Retailing involves sale of goods and services to the customers. This is the final link between themanufactures and the consumers (Chatterton and et.al., 2015). Retailers refers to the distributorswho deliver the end products to the customers. It involves the activities of selling that directlyliked up with the ultimate customers. It clutches direct to customers activities of selling whetherit is through own stores or by mail ordering business. According to the Philip Kotler the retailingis defined as the all activities whether it is good or services that has direction connection to finalconsumer for non personal or personal business use can be said as retailing. The wholesaler canbe called as retailer if it is directly sale its goods to the ultimate customers. A retailer is theperson who purchase goods in bulk from the manufacturer and sells the consumers in smallquantities (Pickering, Paparas and de Aguiar, 2018). The retailer act as merchant for a businessenterprise. Retailing involves many activities which are: selling, buying, grading and risk taking.Retailers can be departmental stores, supermarket, discounting stores, warehouses, malls andspecialities stores. The major focus of retailing is to satisfy the customers needs. There work is todevelop the information about the customers wants and desires. 1
2. Introduction to the CompanyZara is a retail company that deals in high fashionable clothing and accessories. It isestablished in the year 1975 about 44 years back. Its founders are Amancio Ortega and RosaliaMera. Its headquarters are situated in Artexio in Spain. Its operates from 10,000 stores worldwidely. It is one of the world's largest apparel firm. The company supply its products byidentifying the customers needs. The firm managed up-to 20 clothing collection in a year. Thecompany products ranges both in the Men and Women. The first store of Zara is opened in theyear 1975 in central Cournia. Zara is best known for the high fashion end products. The companystarts expanding its business at global level through Porto. In September 2010 the Zara hasstarted its online boutique. The company can delivers its products vastly as they have highlyresponsive supply chain (Pantano, ed., 2015). They required minimum of only one week inorder to manufacture a new product and deliver to their stores. The firm manufactures itsproducts in lesser time as they have RFID technology. Zara has home-ware brands in 12 UKstores in total. The company has operations in more than 2,200 stores in 93 markets all over theglobe. Zara currently operates from 64 stores in UK. 3. Changes within the UK fashion retail - PESTLE AnalysisPestle Analysis refers to a framework that analysis the impact of macro environmentfactors on organisational performance (PESTLE Analysis, 2019). This tool is helpful informulation of strategic plans regarding the growth of the business. Thus, to analysis theinfluence of macro environment factors on Zara pestle analysis is being done as follows - Political Factors – The business activities doesn't remain unnoticed from the government. Thus,the company like Zara also has significant influence of politics. One of the most common factorthat influence the business of Zara is financial regulations in UK. As in the year 2016 the Britainhas voted to leave the European Union. The Political turmoil in sparked with Brexit across theUK. Thus, there is influence of Brexit on firm's profitability. Another positive influence ofpolitics on Zara is that the firm is facilitated with Free trade agreements. The company doesn'tneed to give extra border tariffs (Bogomolova and et.al., 2015). Thus, the sales in UK is boosteddue to free trade agreements in Europe. The company needs to take care of the trade system ofthe country as they have vertical integration system. The UK government is encouraging thecompany to purchase the fabric at local level. Therefore, the Zara is exempted from taxes in UKas they purchase fabric for manufacturing the clothes at local level. The firm gets supports as the2
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