Strategic Management: Analysis of Zara's Position in the Market

Strategic
Management

STRATEGIC MANAGEMENT 1
Executive Summary
The main aim of this report is to understand the concept of strategic management. In this
report, Zara has been taken into consideration in order to analyse its position in the market.
The internal and external analysis has been done in this report. As per the financial
evaluation, it is observed that the organisation will face the financial issues in the near future.
After that, the internal analysis will be done by using the SWOT Analysis tool. Porter’s
generic strategies has been recommended to the company in order to achieve the high success
in the market.

STRATEGIC MANAGEMENT 2
Contents
Introduction............................................................................................................... 3
Market size and trends.................................................................................................. 3
Financial and corporate performance................................................................................ 4
SWOT Analysis and Competitive performance...................................................................5
Strategic options......................................................................................................... 7
Possible recommendations............................................................................................. 8
Conclusion............................................................................................................. 8
References................................................................................................................ 9

STRATEGIC MANAGEMENT 3
Introduction
Strategic Management is the process of analysing, monitoring and controlling the
environment of the organisation. It is essential for the organisation to analyse the
environment for the growth. It is beneficial for the company to analyse the environment in
order to adopt the effective strategies for the high growth. There are different types of
strategic tools which are used to analyse the environment of the organisation such as SWOT
Analysis, PESTLE Analysis and many others. It is an important for the company to evaluate
its financial position in the market by analysing the financial performances (Rothaermel,
2015). The company can easily adopt the effective strategies after analysing the environment
for the growth in the market. In this report, the discussion is made on the fashion retailing
industry of Australia by selecting Zara for analyses.
At the beginning of the report, the market size and trends will be discussed. After that,
financial position of the company will be evaluated by analysing financial and corporate
performances. SWOT Analysis and competitive advantage of the company will be analysed
in order to analyse the effective strategies. At the end of the report, strategies will be
recommended with the appropriate strategies for the organisation.
Market size and trends
Zara is a Spanish fast fashion retailer which is based in Arteixo in Galicia. It is the main
brand of Inditex group which is the world largest apparel retailer. The company manages the
20 clothing collection in a year. Zara’s supplied the products as per the consumer requirement
or as per the market trends. The supply chain of the organisation is high responsive and
visible in the stores. The strong supply chain helps the company to serve the services at the
large number of consumers in order to satisfy their demands. It produces the 450 million