STRATEGIC MANAGEMENT

Strategic
Management

Table of Contents
INTRODUCTION .....................................................................................................................3
MAIN BODY.............................................................................................................................3
Introduction to ZARA...........................................................................................................3
Strategies Chosen on Corporate Level..................................................................................4
Strategic Analysis of ZARA..................................................................................................5
Synthesis of the analysis......................................................................................................10
Conclusion...........................................................................................................................10
Recommendation to chosen organisation............................................................................10
REFERENCES.........................................................................................................................12

INTRODUCTION
Strategic Management is the process of ongoing planning, monitoring, analysis and
assessment of all activities which are important for the achievement of goals and objectives
of an organisation (Aluko and Knight, 2017). The assignment will make its focus on the use
of PESTLE and SWOT Analysis to know about internal and external environment. In
addition to this, discussion will also be made about Porter's Five Forces Model, Value Chain
Analysis and discussion of some unidentified strategies of the company will also be provided.
Lastly, it will focus on providing recommendation related to different strategies which have
been provided and discussed above. Strategic positioning of ZARA in the fast fashion
industry.
MAIN BODY
Introduction to ZARA
The company chosen for the completion of this assignment is ZARA, which was
founded in the year 1975 and is headquartered in Arteixo, Spain. The following organisation
dealing in clothing industry. Due to high competition also, the company has become a
successful organisation because of its good and ethical working that helped it in building
good brand image in minds of customers (ANTREAS, 2017). Amancio Ortega, the owner of
this organisation opened its first store in 1975 in Galicia, Spain. Initially, the name of ZARA
was Zorba which was named after a movie Zorba but the issues related to two block ways
made the owners to make changes in the name which was later on put as ZARA. Further
improvements made by ZARA such as making use of information technologies and using
group of designers also helped in taking the business to international level and after that the
expansion of business is continuing.
The main goal of ZARA is to contribute to the sustainable development of and the
environment as well with which it interacts. The mission and vision statement is about to
give the customers with a varied choice of fashion products and bringing more rapid changes
in fashion than any other fashion retailers. ZARA is also planning to make implementation of
100% sustainable fabrics clothing products before 2025 and which is also the main topic of
discussion in the following assignment. It focuses on proper utilisation of shops in an active
manner along with using the competitive advantages of geographical conditions.

Strategies Chosen on Corporate Level
The Corporate Strategy that has been adopted by the company is related to providing
their customer with 100% sustainable fabrics clothes to their customers considering the
impact of environment and reduce the waste level globally. This will also provide their
customers with competitive advantage over their competitors for the betterment and wellness
of their society and customers. With the help of this strategy, it will be possible for the
company to gain competitive edge over their competitors in the market and also to create
good brand image in the minds of their customers (Zara clothes to be made from 100%
sustainable fabrics by 2025, 2019).
Definition of Differentiation, Expansion and Competitive Advantage Strategy:
Porter Generic Model: The following model refers to the model which is used in order to
gain competitive advantage over the competitors in the market (Porter's Model of Generic
Strategies for Competitive Advantage, 2018). In order to achieve the situation of competitive
edge, the organisation makes use of different strategies that could be adopted in order to gain
the situation of competitive edge. The description of these strategies are provided as under:
Differentiation: The following terms says about differentiation. In other words, it can be said
that this term relates to providing the customers with some differentiated one from the
products of their competitors in order to be special in the market.
Expansion: It is the process in which an organisation increases the size of their organisation
such as by increasing the operations of the business for increasing the reach of their products
and services and also to increase their revenues and incomes (Porter's Model of Generic
Strategies for Competitive Advantage, 2018).
Competitive Advantage Strategy: It refers to the situation in which an organisation due to
its some special strategy or innovation, is able to gain special market share or attention of
people which has impacted positively on the sales and profit of their customers. According to
MALLORY SCHLOSSBERG, 2016, the company has gain good competitive advantage over
their competitors because of their good operations of supply chain and with the help of proper
management of their inventory and this has provided with the company with competitive
advantage.
ZARA is making use of differentiation strategy in order to provide to their customers.
With the help of this strategy, it will be possible for the company to make improvements in
the overall working of the company and also to make increment in the revenues and incomes
of the company. With the help of differentiation strategy, the company will be able to provide
their customers with differentiated products than their competitors so that it could become