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Strategic Management of ZARA

   

Added on  2021-01-01

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Strategic Management
Strategic Management of ZARA_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1 ...........................................................................................................................................1Strategic direction of ZARA within past 5 years...................................................................1TASK 2 ...........................................................................................................................................2PESTEL of retailing industry.................................................................................................2Competitive advantage...........................................................................................................3Probable scenario faced by ZARA within its existing market domains.................................4TASK 3 ...........................................................................................................................................5Strategic drift..........................................................................................................................5Mission and vision statement to demand of marketplace.......................................................6Strategic capabilities...............................................................................................................6Business Canvas Model..........................................................................................................8TASK 4 ...........................................................................................................................................9Strategies to defend core business..........................................................................................9TASK 5..........................................................................................................................................11Resource implications of your recommendations................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
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INTRODUCTIONStrategic management refers to an effective process in which formulation andimplementation of major plans taken by a company by considering necessary facts or figures inorder to attain company objectives. It basically includes the accurate criteria of utilising availableresources and allocation of different tasks to employees for achieving required targets in propermanner. There are various kinds of efficient strategies or techniques that are needed to be madeby management for conducting different activities (Barney, 2012). It is necessary to build anappropriate plan of action for carrying out overall operation procedures in correct direction toattain better outcomes on regular basis. This report is based on ZARA which is known asSpanish fast fashion deals in retailing and provides several kinds of clothing or accessory goodsto people at global level. It was founded by Amancio Ortega & Rosalia Mera in the year around1975. They have almost 2200 stores that are established worldwide for making productsavailable to customers in easy way. This assignment will discuss about strategic direction thatfollowed in past and development achieved. It also includes explanation about detailed analysisof retailing industry involving PESTEL and critical discussion for competitive advantage.Different types of strategies are used in context of given company for completing various aspectslike grabbing competitive advantage, to defend core business in the report.TASK 1 Strategic direction of ZARA within past 5 yearsThere are different types of strategies that are utilised by businesses to conduct requiredtasks or activities in correct way along with creating desired outcomes. In case of ZARA, it hasseveral effective as well as efficient techniques which are beneficial to carrying out variousprocedures to completer set targets properly. The company has build certain appropriate policiesand adopt different technological equipments to improve their productivity and profitability(Berger and Berger, 2011). This organisation is very famous for its quality of clothing and otherproducts which are rendered to clients. Some of strategies that are followed by ZARA whichhelps to gain development are as follows:
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StrategyDevelopmentBrand Creates Frenzied Buyers: The ZARAhas an appropriate strategy as it deigns,produces, distributes and sell its productswithin only 1 month and then severalcompetitors take certain months to do the samething. This approach render few benefits suchas less clothing in stock means lowerstorage costs and fewer mark downs.People get attracted towards fresh trendof ZARA and they frequently purchasethem. Zara’s Reverse Strategy: The reverse methodincludes criteria of thoroughly analysing bygoing in streets or malls to knowactu1532435471_1532523222 (2)al wearing ofpeople (Clarke, 2012). This techniques is useful to addressappropriate preferences andrequirements of clients properly thathelps to them to become more popularat global level and gain capability tocater directly to individual's demands. Listen to feedback: This refers to primary stepof growth strategy in which the companycollect actual data of clients needs, wants anddemands from different areas such as streets,malls and customers. ZARA has used this policy to knowabout actual likes and dislikes of peoplethat involves which are necessary tomanufacture innovative products tofulfil expectations of customers. It willfacilitate to gain more number of clientsthat helps to attain long term profits. TASK 2 PESTEL of retailing industryThe retailing industry is required to focus on external environment factors because theyimpacts on this sector in positive or negative manner (Foss and Knudsen, 2013). Some of thesecomponents are given below:Political Factor: This factor is all about several political rules or norms that are made bypolitical bodies of particular area. It also includes several government regulations which impactson revenue and profitability of retail industry. Political issues creates problems to conductvarious operational activities for improving better outcomes. For example, it is necessary forZARA to analyse political stability of particular nation that helps to attain growth of businesssuccessfully.
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