Strategic Management of Zara: Market Changes, Technology, and Competition

Running head: STRATEGIC MANAGEMENT 1
Strategic Management

STRATEGIC MANAGEMENT 2
Executive Summary
The following report is based on one of the most famous clothing brand, Zara. The report has
highlighted the aim of conducting this analysis on Zara in order to identify the current
position of the company, strategies it utilizes to remain competitive in the retail Industry, and
factors that may affect its operations. The report has been introduced by giving a brief about
Zara. In the next part the strategic factors that can affect Zara have been mentioned. The
report has also prepared an internal analysis to understand the internal factors affecting Zara.
An external analysis has also been conducted which includes a SWOT and PESTLE analysis.
The report has also analyse the strategic implications by using an Ansoff’s matrix to suggest
any new strategies help for the growth of the business. The report has been concluded by
giving a brief of the analysis conducted and accordingly recommendations have been
provided.

STRATEGIC MANAGEMENT 3
Introduction
Zara is one of the clothing brand which has gained tremendous growth and popularity
in the fashion industry from the last three decades (Inditex, 2019). Zara was founded in the
year 1975 by a Spanish businessman, Amancio Ortega Gaona building the Ortega family
comprising of three other famous brands under its name. The success of Zara begin by
offering a wide range of affordable and stylish clothing for men, women and children. Java is
well known for its keen eye for discovering new fashion trends and transforming these trends
from stores to the high street. Currently according to Fast Retailing (2018), Zara is second
largest clothing retail UK market. The company's mission to satisfy the desires of the
customers and continuously innovate the business by providing new designs that are
affordable. The long-term objectives of the company is to contribute to the sustainable
development and environment. Zara has been successful due to its good designs and customer
loyalty making it one of the largest brands in the world.
Aim
The aim of the report is to identify three strategic influences the together impact on
the outcome of Zara. The company has been growing tremendously but there are certain
strategic influences that might impact its operations.
The three strategic influencers are as follows-
Market changes
Technology
Competition
Strategic Factors
Market changes
Zara has been one of the world's largest fashion retail taking maximum share with its
fashionable offerings in the fashion industry. The market changes comprise of many factors
that can impact operations of Zara. One of the most important factors is the emergence of
online-centric market players to beat companies like Zara at their own game. Companies in
UK market like Misguided, and Boohoo on a road to cut down their supply chains in order to