Analysis of Business Growth Strategies

The assignment provided is an analysis of business growth strategies, focusing on the factors that affect business success. It includes a review of relevant studies and research papers on topics such as product innovativeness, quality, and market performance. The document also explores the role of strategic management in achieving business growth, highlighting key concepts and theories from literature such as corporate environmental management, firm innovativeness, and state ownership.

To Examine the impact of product
and development on business
performance- A case study on
ZARA

TABLE OF CONTENTS
TITLE .............................................................................................................................................1
1. INTRODUCTION.......................................................................................................................1
1.2 Background...........................................................................................................................1
1.3 Research Aim and Objectives...............................................................................................1
Aim:............................................................................................................................................1
Objectives:..................................................................................................................................2
1.4 Research Question.................................................................................................................2
1.5 Research problem..................................................................................................................2
1.6 Rationale...............................................................................................................................2
1.7 Structure of the project..........................................................................................................3
Chapter Structure........................................................................................................................3
2. LITERATURE REVIEW............................................................................................................4
3. RESEARCH METHODOLOGIES.............................................................................................8
Discussion of primary and secondary data................................................................................11
4. DATA ANALYSIS....................................................................................................................11
DATA ANALYSIS .........................................................................................................................1
Critically reviewing results of research.....................................................................................11
Recommendation and Action Plan............................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

TITLE
“To Examine the impact of product and development on business performance- A case study on
ZARA”
1. INTRODUCTION
Product and market development strategies are to be implemented so that business may
be able to attain enhanced business performance. It is quite important for business in attainment
of desired objectives of business. For the present research report, ZARA is been chosen as
organisation of context. It is a Spain based fashion enterprise, operating worldwide, including
UK. Report will examine impact of product and market development on business performance in
effective manner. Suitable business proposal is been presented along with the reviews of
literature and assessment of primary and secondary data collection. Other than this, proper
research is carried out with presentation of suitable outcomes and appropriate recommendation
and action plan is presented to improve understanding about the product and market
development in ZARA.
1.2 Background
Research study is quite important for meeting the ideas of research for which it is
intended in a better manner. The product development strategy is used for creating fresh goods in
the market so that customers may be attracted quite easily. It is needed that product development
and its impact may be evaluated beforehand so that no issues arise in the future (Tsai and Yang,
2013). On the other hand, market development is another strategy adopted by organization for
developing new segments of market for current products sold by company. Present study deals
with examining impact of these two strategies on performance of ZARA in effective manner.
Besides this, appropriate market analysis and identification of consumer preference with current
market trends are been analyzed for framing a proper strategy so that organization may be able to
attain desired performance.
1.3 Research Aim and Objectives
Aim:
“To Examine the impact of product and development on business performance- A case
study on ZARA”
M
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N
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Objectives:
 To assess the ongoing trend prevailing in retail sector
 To analyze effect of product and market development on ZARA
 To examine impact of product and market development on performance of ZARA
 To propose improvements to product and market development to ZARA
1.4 Research Question
Q1. What are the requirement of product and market development in business activities and
responsibilities of professionals?
Q2. What are the factors of product and market development that impacts ZARA?
Q3. How to develop an internal adaptive management for initiating smooth development of
market and product for ZARA?
1.5 Research problem
The research issues can be highlighted which is being faced by ZARA in implementing
appropriate strategies for product and market development. It is required that products being sold
in the current market are becoming less popular and needs to maintain better strategies. The
customer expectations are also not met according to current product line. Moreover, implication
of several techniques have been made for enhancing overall business performance.
1.6 Rationale
What
The competition in the marketplace is increasing day-by-day. For outreaching rivalries,
ZARA is required for developing product and market development strategy so that business may
be able to increase its customer base. This will automatically enhance business performance in a
better manner. Proper formulation of strategies are to made so that high quality fashion apparels
may be sold to them in effective manner.
Why
The research study will be used to get appropriate idea about strategies to be taken by
company in terms of market and product development in a better manner. Assessment of issues
being faced by ZARA in terms of market and product development needs to be taken into
account. The research will help company to enhance its performance by formulating strategy and
attain adequate profits.
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How
Extensive research will be carried out that will assist ZARA in meeting profits in a better
manner. Furthermore, it will have immense benefits to company as product line will be
revamped. It will also help company in meeting its objectives in effective manner. Thus, by
applying appropriate research methodologies and analytical tools, research will be conducted.
1.7 Structure of the project
Chapter Structure
Chapter 1. Introduction:
This chapter is based on outlining the overview of the study as well as topic. In this
chapter researcher focus on developing a brief understanding of topic of the research. Aims,
objectives and research questions are also formed in this chapter. Further, reason for choosing
the impacts of Research and development in formulating business strategy is the topic also
specified in this chapter.
Chapter 2. Literature Review:
This is the second chapter of the dissertation where the discussion of secondary facts as
well as findings which are gathered by several researchers or scholars. The entire discussion is
based on the different books, journals, articles, blogs and other valid and authentic sources.
Chapter 3. Research Methodology:
This is the third chapter that is based on the implication of research tools. These research
tools assist scholar in collecting, analysing and interpreting data. The reason for selecting the
methods of research methodologies is also explained in this chapter. With the help of research
methods, it becomes easy for researcher to achieve the aims and objectives of the study.
Chapter 4:
Data Analysis and Interpretation: This chapter is based on the data collected by the
researcher where the researcher will collect information from various primary sources by
preparing questionnaire.
Chapter 5: Conclusion and Recommendation:
This chapter is the summary of whole study that assist in valuing information which are
collected by researcher. Scholar will also provide recommendations and advise to the company
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behalf of the topic. The conclusion will be descriptive on the basis of all chapters which will
make clear assumption of over every information collected and analyses.
Timeline
Activities Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Week
9
Week 10
Research proposal
Aims and
objectives
Literature review
Research
methodologies
Data collection
Data analysis
Data interpretation
Finding and
conclusion
Recommendations
Execute the plan
Submission
2. LITERATURE REVIEW
2.1 Introduction
The review of literature is required to be done so that existing knowledge or theory can
be utilised for making pathway of ideas in a better manner. The product and market development
both are crucial for business performance and have large impact on it. In relation to this, existing
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theory in practice can be identified and review can be done in effective way. The literature is
summarised below with reference to listed objectives-
2.2 Product and Market Development
As per the views of Boons and et.al. (2013), product life cycle is a stage where
product goes from the introductory stage to the growth, then maturity stage is accomplished
and lastly product declines. The introduction stage is where heavy expenses are incurred for
getting products in the market and limited distributions levels prevail. In the growth stage,
consumer knowledge towards organization increases and this leads to increase in sales.
Maturity stage arrives where sales and profits reach at their peak point and customers are
lured towards product by modifying commodities as per their needs. Next stage arises of
decline where sales constantly falls for the company and for maintaining sales, profit margin
has to be cut down.
In contrast to this, Durmuşoğlu and Barczak (2011) firm is required to make product
and market development strategy by implementing the Ansoff Matrix which helps to decide
business upon their product and market growth strategy in a better manner. The market
penetration, market development, product development and diversification are four grids of
the matrix that helps business to focus on product and market in the best manner possible
that increases its performance (B2B Product/Market Growth. 2018). Market penetration
means to penetrate existing products in the current market by enlarging share of current
products. This enhances company's profits up to a major extent leading to incorporate better
pricing strategies for attracting customers. Market development is termed as a strategy for
getting into new market to sell existing products in order to develop more market share of
the product. This means that by selling current successful products to new markets,
organization becomes able to grab new share.
Morgan (2012) argues that product development is selling new products to existing
markets in order to replace existing ones. The products are then sold to existing customers.
It is a strategy where corporate adopts a strategy to replace existing products which have
reached decline stage. Innovatory commodities enhances customer satisfaction and they are
attracted to buy the same. Diversification is a growth strategy where organization sells
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completely new products to new customers. Through diversification strategy, new market
share can be developed but requires thorough market research for making it successful.
Jasra and et.al. (2011) says that Boston Consulting Group (BCG) matrix is useful for
organization for identifying their product line in a better manner. It is divided into four
elements such as stars, cash cows, dogs and question marks. The star products have rapid
growth and good potential in the market for the company. Lot of income is also generated
by stars in company quite effectually due to greater market share. Cash cows have less
competitive pressures with low market share and maintaining some dominant position in the
market. Dogs are classified as weakest share in the market and low growth market as well.
Products are making a loss and has an adverse impact on management time resources. The
question marks arises when commodities are in a high growth market but does not seem to
have good market share. Products like this needs more investment for making them attain
better approach from customers.
2.3 Business Performance
According to Rodríguez-Pinto, Carbonell and Rodríguez-Escudero (2011), business
performance can be encouraged by making better approach to the customers so that it may
become successful in the market. The performance should be measured in a better manner
which helps organization to take into account inefficiencies if any so that it can be removed
and performance could be improved. The performance of the business can be enhanced by
incorporating theory of performance management. The balanced scorecard is one of the
crucial performance measurement tool used for managing implementation of corporate
strategies. Balanced scorecard lies on four perspectives such as financial, customers,
internal business processes and learning and growth.
As per the Chen and Chang (2013), financial perspective measures use of financial
resources made by company and also whether financial performance of company is adequate
or not. The customer perspective views organizational performance with reference to point
of view of stakeholders or customers of the firm. Internal process refers to analyze quality
and efficiency of products or key business processes which provides output to company.
Learning and growth refers to human capital, infrastructure, culture and technology to
enhance overall performance of business in the best manner possible. This means that with
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the help of balanced scorecard, internal process of business gets enhanced and better output
is delivered to consumers by managing business performance.
Lisboa, Skarmeas and Lages (2011) argues that business performance is required to be
improved by incorporating constant innovations which helps in increasing market share. The
customer base also increases helping to attain higher profits in the best manner possible.
This helps organization to accomplish desired market share. Theory of market share refers
to not to cut prices of commodities for gaining volume share as it often decreases revenues
for the market. Moreover, it can be said that business may be able to attain higher profits as
growing even dollar share in market which is declining, often leads to decreased revenue.
Firm is profitable and is big as well that means it is producing good product which
ultimately increases its market share as product is fairly accepted in the marketplace. This
means that by enhancing overall production line and making better products, market share
can be increased leading to accomplish enhanced business performance in a better manner.
Lau, Yam and Tang (2011) says that profitability is directly in relation to market
share of the company. It means that when a product finds place in the market or customer
purchases it, profitability gets maximized automatically as growth of product is achieved.
This means that company is able to attain higher profits and relative market share increases
up to a major extent. It means that increase in profitability of organization leads to increase
in market share which ultimately elevates business performance as products are being
accepted by large number of people. This means that by improving upon products and
markets, company can eventually achieve higher sales in comparison to market. This
highlights that higher profits are attained and as a result, higher market share is grab by
company.
2.4 Effect of Product and market development on market performance
As per the views of Cheng and Krumwiede (2012), product and market developing both
have impact on company's performance and also on customers up to a high extent. Business
exists for satisfying customers so that desired profits can be achieved by fulfilling requirements
or demands of customers. It means that new product planning and development is utmost
significant for maintaining market share in a better way. Product development is a strategy where
set of activities are begun having market opportunity and ends with production, sale and final
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delivery to customers. This has direct effect on the consumers as commodities are being
produced for them only. It is required that consumers purchases the product, if it is liked by them
or disengage with the same when it is not made according to their set parameters. Customers
have to provided with desired items which satisfy them and help company to gain share in the
market.
Cassia, De Massis and Pizzurno (2012) argues that firm can attain higher profits by
satisfying customers by attracting them to purchase product on frequent basis. By offering
products, consumers are in charge of providing best of their products which increases customer's
satisfaction and they are able to attain higher market share quite comfortably. It can be
accomplished by understanding the demands and needs of customers by properly conducting
market research in the best way possible. This means that company must conduct thorough
market research that helps in identifying needs quite comfortably. Moreover, it can be
ascertained that by providing better products through implementation of product development
strategy, company is able to attain increased sales as new products are introduced in existing
market where penetration can be successful.
According to Knudsen and Mortensen (2011), market development is initiated when firm
tries to enter into new markets to sell its current products which are successful in another market.
The effect on the consumers can be analysed as they are not attracted instantly to purchase the
product. Certain market research is done by them and then only, if their parameters are attained,
purchase is made by them. This ensures that company is able to attain good profits as customers
are lured to make purchase. It leads to enhance customer base and product is successfully placed
in new market as customers accept the same. It provides clarity that effect on customers on
market development is adequate as firm tries to incorporate desired products in new market to
create share by satisfying customers.
Bhuiyan (2011) says that product and market development has impact on the market
where customers make purchases and it is required that according to their needs, product should
be designed for making higher profits in shorter time period. This leads to grab good grip in the
market which increases share and sales volume increases up to a certain extent. The higher the
market share, better the performance of business can be enhanced with ease. Customers are to be
offered with products which are desired by them so that they may become loyal to the firm and
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overall business performance can be improvised quite comfortably. Moreover, with better
internal processes, firm can enhance its performance and accomplish share.
3. RESEARCH METHODOLOGIES
Research Type:
Selection of proper research type is a very important aspect of the organization as it
helps the firm to set the methodologies and operations by a scholar (Brewster, 2017). There
are basically two types of researches: qualitative and quantitative. The qualitative research
method is used to assess the non numeric data while the quantitative research method is
used to evaluate numeric details. For the present research report, Qualitative research type
has been chosen as it will involve the quality assessment of different sort of non numeric
based data collected for the research purpose.
Research Approach:
After the research type is been selected, the research approach is been followed by
the scholar within the selected firm. Selecting proper research approach will help in suitable
assessment of research operations that are been taken by the firm (Davcik and Sharma,
2016). There are majorly two types of data evaluation approaches that are undertaken by a
scholar: Inductive and Deductive. As the name suggests, inductive involves setting up of
patterns of various observation to develop specific theories from series of hypothesis on the
other hand, deductive approach is the method to derive hypothesis on the basis of existing
theory. For the present research process at ZARA, scholar has chosen inductive research
approach as qualitative research type has been selected.
Research Philosophy:
Followed by the selection of research approach, the scholar will look after the proper
adoption of research philosophy which will contribute in carrying out suitable data
assessment process within the firm (Fabbe-Costes and Colin, 2017). There are two types of
research philosophies which are undertaken by the scholar: Interpretivism and Positivism.
Interpretivism philosophy is used for the naturalistic approach of data assessment for the
solution of a problem, while, Positivism philosophy involves the perception of people
towards a problem. As Qualitative research type is been selected for the research purpose,
Interpretivism research philosophy has been chosen by scholar.
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Sampling:
After the selection of the data collection method, suitable sampling approach is
required to be taken to carry out the research process effectively. Sampling process is been
carried out for the proper selection of the participants or respondents for a research activity
from a population. There are basically two data sampling measures: probabilistic and non
probabilistic. In probabilistic sampling, scholar freely chooses the number and type of
respondents while in non probabilistic measure, the respondents are fixed priory. For the
present research process, scholar has chosen simple random sampling approach of
Probabilistic sampling involving 30 managers of ZARA are chosen as Qualitative research
type has been selected.
Data Collection:
After the suitable selection of research philosophy the data collection measures are
been selected by the scholar that will improve the overall effectiveness of research process
that is been carried out within the organization. There are basically two types of data
collection measures: primary and secondary data collection. The primary data collection
measure involves the gathering of appropriate data using Interview, focus groups or surveys.
On the other hand, secondary data collection measure involves evaluation of books, journals
and scholarly articles for the research purpose (Dayan, Heisig and Matos, 2017). For the
present report, primary data collection method has been selected as scholar has chosen
Qualitative research type.
Data Analysis:
The data analysis measure will help in proper identification of research activities and
operations within the firm (Schaltegger, Burritt and Petersen, 2017). It has two sub
categories or types: Thematic and SPSS. The thematic approach helps in analysis of data by
arranging it in form of themes and is used majorly with qualitative research type while in
SPSS, certain codes are been implemented over the data to get suitable outputs and used in
quantitative research type. The current research approach includes the thematic data analysis
as Qualitative research type has been selected.
Ethical Considerations:
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Different ethical consideration are been taken in consideration that will improve the
overall performance and thus, will guide the scholar to carry out the research process
effectively. Some ethical considerations like taking prior consent of all their respondents
and placing authentic sources of data and scholarly articles are followed by the scholar
during research process
Reliability and Validity:
The scholar will look after the proper assessment of data which is reliable and valid
in nature and is uniquely collected by the respondents without any tempering or alterations.
The selection of proper data that is reliable and valid in nature will improve the
effectiveness of data that is been carried out within the organization, by scholar. The
selection of the proper and reliable data will help in the suitable execution of data
assessment process within the organization.
Limitations:
Various limitations are been managed by scholar while carrying out the research
process that will help in getting proper outcomes from the research process ( Wheelen and
et.al., 2017). Some major limitations that affects the data assessment process are safe
storage of data, sustaining respondents during research process and presentation of gathered
output. Proper management and handling of these limitations will help the organization will
help in improving the effectiveness of research process carried out within ZARA.
Discussion of primary and secondary data
4. DATA ANALYSIS
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Corporate Strategy and
Governance
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DATA ANALYSIS
Primary Method
QUESTIONNAIRE
Name of Company: Zara
Designation of Respondents: Managers
Age:
Gender:
1. How long you are working in this company?
 1 to 3 years
 3 to 6 years
 6 to 10 years
2. Do you think your employees are concern about the business performance?
 Yes
 No
 Not Sure
3. Is the product development strategy rewarding in terms of company performance?
 Highly Agree
 Agree
 Neutral
 Highly Disagree
Disagree4.What are the product development strategies adopted by Zara?
 New product Development

 Modifying Existing Products
 All the above
5. As per your opinion how market development influence the business performance of the
company?
 Positive
 Negative
 Neutral
6. According to you what are the main elements required for effective product development
strategy?
 Required Research & Development
 Required a Clear path for brand extension
 All the above
7. What are the benefits of product and market development on business performance?
 Increase present customer base
 Attracting competitors customers
 Expanding Geographically
8. What are the major challenges faced by Zara in the development of product and market
development?
 Customer Engagement and Retaining Loyalty
 Government issues
 Intense competition
 Rapid changing of fashions
9. Do you think product development strategy of Zara will create a market for the company?
 Highly Agree
M
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N
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G
E
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S

 Agree
 Neutral
 Highly Disagree
 Disagree
10. Do you think product diversification is one of the best strategy to improve the productivity as
well as maintain brand name in the market?
 Highly Agree
 Agree
 Neutral
 Highly Disagree
 Disagree
11. Do you think market development strategies lead to competitive advantage for company?
 Highly Agree
 Agree
 Neutral
 Highly Disagree
 Disagree
12. What do you recommend to Zara for bringing effective product and market development?
 Zara should focus on innovations
 Zara should focus on customer base pricing
 Firm should stay focus on the needs of customers
 All the above
THEME 1: Maximum number of managers are employed in Zara for 3 to 6 years.
M
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N
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PARTICULARS MANAGERS
1 to 3 years 9
3 to 6 years 15
6 to 10 years 6
INTERPRETATION: The above primary research conducted by researcher analysed
that maximum managers are employed in Zara for 3 to 6 years as ticked by 15 respondents. 9
managers were employed for 1 to 3 years and 6 respondents were working for 6 to 10 years.
They are senior managers of the company.
THEME 2: Employees are concern about the business performance.
PARTICULARS MANAGERS
Yes 14
No 9
M
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N
A
G
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R
S
1 to 3 years 3 to 6 years 6 to 10 years
0
2
4
6
8
10
12
14
16
MANAGERS

Not Sure 2
INTERPRETATION: The above primary research conducted by researcher analysed
that employees are concern about the business performance as 14 respondents are agreed. They
said that employees are fully satisfied with the operations of Zara which makes them connected
to the company. On the other hand, 9 managers are not satisfied as they said that employees does
not have any concern about the business performance, they are only concern about the job role
and salary. Remaining only two managers are confused and does not have proper answer.
THEME 3: Product development strategy rewarding in terms of company performance.
PARTICULARS MANAGERS
Highly Agree 10
Agree 6
Neutral 3
Highly Disagree 7
M
A
N
A
G
E
R
S
Yes
No
Not Sure
0 2 4 6 8 10 12 14
MANAGERS

Disagree 4
INTERPRETATION: The above primary research conducted by researcher analysed
that product development strategy rewarding in terms of company performance as 10 managers
are highly supporting. They said that just because of product development customers are
attracted towards new product which in turns raise the sales of Zara. 6 respondents are also
supporting with the same reason. On the other hand, 7 managers are against of this as they said
the performance of company depends on the employee's work and efforts not by product
development strategies. 4 participants are also not supporting for the same reason. Reaming do
not have proper answer.
THEME 4: New product development strategies adopted by Zara.
PARTICULARS MANAGERS
New product Development 14
Modifying Existing Product 10
All the above 6
M
A
N
A
G
E
R
S
Highly Agree
Agree
Neutral
Highly Disagree
Disagree

INTERPRETATION: The above primary research conducted by researcher analysed
that 14 managers are committing that Zara usually adopts new product development strategies to
raise the customer's satisfaction along with sales of company. 10 participants are arguing that
Zara mostly focus on modifying the existing products. 6 managers are supporting both the
options.
THEME 5: Market development influence the business performance of the company in
positive manner.
PARTICULARS MANAGERS
Positive 17
Negative 5
Neutral 8
M
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N
A
G
E
R
S
New product Development
Modifying Existing Product
All the above
0
2
4
6
8
10
12
14
MANAGERS

INTERPRETATION: The above primary research conducted by researcher analysed
that market development influenced the business performance of Zara in positive manner as said
by 17 managers. They said that customers remain attached to the company by market
development strategies. On the other hand, 5 managers are committing that it leads to negative
impact on company's performance. They said that it is very risky and costly technique. 8
managers said that there be neutral impact on the business performance from market
development strategy.
THEME 6: Both elements R&D and Clear path for brand extension is required for
effective product development strategy.
PARTICULARS MANAGERS
Required Research & Development 6
Required a Clear path for brand extension 5
All the above 19
M
A
N
A
G
E
R
S
Positive
Negative
Neutral

INTERPRETATION: The above primary research conducted by researcher analysed
that effective product development strategy requires both research and development and clear
path for brand extension as 19 respondents are agreed. They said that without considering both
these elements, it is not possible to formulate effective product development strategy. 6
managers are committing that this strategy needs to consider R&D. 5 managers said that this
strategy required clear path for brand extension.
THEME 7: Increase present customer base is the main benefits of product and market
development on business performance.
PARTICULARS MANAGERS
Increase present customer base 11
Attracting competitors customers 10
Expanding Geographically 9
M
A
N
A
G
E
R
S
Required Research & Development
Required a Clear path for brand extension
All the above
0
2
4
6
8
10
12
14
16
18
20
MANAGERS

INTERPRETATION: The above primary research conducted by researcher analysed
that increasing present customer base is the main benefit of product and market development on
the business performance as said by 11 managers. They said that customer's do not move to
another company with this strategy. 10 manager said that it attracts customers of competitors
which is a plus point for Zara. 9 participants said that product and market development expand
the business geographically.
THEME 8: Customer Engagement and Retaining Loyalty is the major challenge faced by
Zara in the development of product and market development.
PARTICULARS MANAGERS
Customer Engagement and Retaining Loyalty 10
Government issues 5
Intense competition 8
Rapid changing of fashions 7
M
A
N
A
G
E
R
S
Increase present
customer base
Attracting competitors
customers
Expanding
Geographically

INTERPRETATION: The above primary research conducted by researcher analysed
that customer engagement and retaining loyalty is the major challenge faced by Zara in the
development of product and market development as 10 respondents are supporting same. They
said that company have to focus on retaining the loyal customers. 5 respondents said company
face challenges from government issues like tax duties, tax structure etc. is very strict and it
raised with the margin of profit increases. 8 managers said that the threat of competition is very
high in the fashion industry which has become the major challenge for Zara. 7 participants said
that fashion of clothing, shoes etc. changes very rapidly which company have to cop up to
remain the customers satisfied which becomes very challenging task for company because it is
costly.
THEME 9: Product development strategy of Zara will create a market for the company.
PARTICULARS MANAGERS
M
A
N
A
G
E
R
S
0
2
4
6
8
10
MANAGERS

Highly Agree 9
Agree 5
Neutral 3
Highly Disagree 7
Disagree 4
INTERPRETATION: The above primary research conducted by researcher analysed
that product development strategy of Zara create market for the company as said by 9 managers.
They said that when company develops new product in new segment like geographical,
behavioural, psychological, than market automatically develops. 5 managers are also supporting
with the same reason as they said product development strategy expands the market of company.
On the other hand, 7 managers are against of this as they said it is not sure that new market will
be develop, sometimes product is eliminated when customers do not prefer. 4 managers are also
not supporting. Remaining 3 are confused and do not have proper answer.
THEME 10: Product diversification is one of the best strategy to improve the productivity
as well as maintain brand name in the market.
PARTICULARS MANAGERS
M
A
N
A
G
E
R
S
Highly Agree
Agree
Neutral
Highly Disagree
Disagree

Highly Agree 10
Agree 5
Neutral 2
Highly Disagree 7
Disagree 4
INTERPRETATION: The above primary research conducted by researcher analysed
that product diversification is one of the best strategy in order to improve the productivity as well
as maintain brand name in the market as 10 respondents are favour of this. 5 participants are also
supporting. They said that it minimises the risk of loss for company as well as it also improves
the productivity and maintain the brans name of the company. Apart from this, 7 managers are
against of this as they said that product diversification creates mismanagement and wastage of
resources which do not create productivity. 4 are also not in favour of this statement. Only 2 are
neutral and does not have specific answer.
THEME 11: Market development strategies lead to competitive advantage for company.
M
A
N
A
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Highly Agree
Agree
Neutral
Highly Disagree
Disagree
0
1
2
3
4
5
6
7
8
9
10
MANAGERS

PARTICULARS MANAGERS
Highly Agree 11
Agree 4
Neutral 1
Highly Disagree 8
Disagree 6
INTERPRETATION: The above primary research conducted by researcher analysed
that market development strategies lead to competitive advantage for Zara as 11 participants are
highly satisfied. 4 managers are also favoured with the statement. They said competition is very
high in the market, organisations are giving tough competition to each other, so in order to take
advantage, company have to focus on market development by effective products and services.
Beside this, 8 managers are against of this as they said there is high risk of product failure from
market development strategy. Only single manager do not have authentic answer.
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Highly Agree
Agree
Neutral
Highly Disagree
Disagree

THEME 12: Maximum manager is recommending to Zara that they should stay focus on
the needs of customers.
PARTICULARS MANAGERS
Zara should focus on innovations 7
Firm should stay focus on the needs of
customers
12
Firm should invest in R&D. 6
All the above 5
INTERPRETATION: The above primary research conducted by researcher analysed
that Zara should stay focus on the needs of customers as recommended by 12 managers of the
company. They said that Zara should keep the prices on the basis of customers so that they can
maintain large size of customers. 7 managers recommended that Zara should focus on innovation
because the patterns and styles in fashion industry changes very fast. 6 manager recommended
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Zara should focus on innovations
Firm should stay focus on the needs of customers
Firm should invest in R&D.
All the above
0 2 4 6 8 10 12
MANAGERS

that Zara should invest in R&D so that they can identify the actual needs and expectations of
customers and provide that best suits them. And last 5 are recommending all the above options.
Critically reviewing results of research
It can be critically evaluated that corporate strategy or business strategy is one of the
important element of company and has an immediate impact on business performance of
company. The product and development measures are to be adopted by ZARA as it is
reviewed from the results of questionnaire being provided to respondents that there is
immense requirement of well-defined strategies of product and market development which
will be helpful in carrying out desired level of performance in a better manner. Moreover,
efficient management is helpful in overcoming hurdles in implementing effective strategies
of product and market development. On the other hand, with the help of Research
&Development, firm will have competitive edge over its rival businesses. This will lead to
attainment of profits and increasing market share in the best manner possible. Moreover, it
can be said that firm will be able to attain efficiency by applying strategies and techniques
for customers engagement and retaining loyalty within business in a better manner as it gets
competitive edge over rival businesses.
It can be analysed that product and market development strategies influence the
performance of company in better manner. It is evident from the fact that overall
performance of company is enhanced with the help of meeting operational activities of daily
nature. In addition to this, sales of Zara will be maximized. With the help of investment in
new product development and market development firm is able to accomplish profits as new
and innovative products are offered to customers. This makes them loyal towards firm. It
can be said that impact of product development and market development on ZARA is
favourable on business performance. This is because management is able to plan for
accomplishing better avenues for firm.
Recommendation and Action Plan
Conclusion
Recommendation
Hereby it can be recommended that ZARA should aim to create understanding of
opportunity for determining what products are required by customers. It means that for
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analyzing accurate size of market, then only product must be developed in the market. This
will provide ZARA with enhanced business performance. It is also recommended that
company should screen for new product which should be in conjunction with the targeted
revenue which will help in attaining higher profits and business performance will get
maximized. On the other hand, price of the products is also an important element in strategy
development. This is because price would become a barrier for budget-focused customers
who really want to purchase the products.
It means that cost-plus pricing must not be followed rather customer-based pricing
should be followed. This will easily develop the market for ZARA as people think that price
of the clothes and apparels are priced high. In order to attain, market development, ZARA is
required to conduct proper market research which will help it to accomplish desired share in
the marketplace. Hence, by incorporating these recommendations, organization will be able
to enhance business performance quite effectually.
Action Plan
Action to be taken Materiality Attainment of Target Date of accomplishment
Creating policy for
standardising corporate
strategy
Updating corporate
strategy handbook in
accordance to board of
regulations.
Supporting business
standards for resolving
issues.
It will be completed within
2 months of time period.
Investment in product and
development activities
The investment in product
and development is
required to be made by
discussing with finance
department and approving
funds required.
The top management will
identify investment
requirement for getting
product and development
activities. It will be
sanctioned to product and
development department for
starting research.
It will take 1 month of time
period.
Defining corporate strategy
role in the company
The role of Board of
Directors, role of CEO and
establishing functions for
It will be clarified by
assessing review of planned
performance with actual one.
It will be attained in 2
months.
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improving upon important
decisions.
Offering quality products
with the help of strategy to
customers
To maintain and improve
product quality through
regular supervision of
products.
Maintaining certification
with regards to ISO for
assessment of quality
standard.
The action plan element
will take 1 month.
Respecting and balancing
interests of employees
Maintaining stringent rules
to enhance satisfaction
level of stakeholders
towards firm.
Identification of prevailing
practices and make changes
if deviation exists in actual
performance with planned
one.
It will be attained in 1
month.
Enhancing risk management
practices
Ensuring that regulations
are complied with.
Identification of status of
compliance and then
conducting group-wise
surveys for measuring
success in effective manner.
It will take nearer to 2
months to complete this
action plan element.
Transparency of operations to
stakeholders
For making out analysis
that operational activities
are transparent in effective
way which help
stakeholders to review
whole process of
company's operations.
To determine level of
transparency which provides
clarity to stakeholders and
analyse if deviations exist
and make necessary changes
for ensuring transparency.
It will take 1 month to
achieve the same.
CONCLUSION
The above research paper comes to the conclusion that the impact of product
development and market development is favorable on the performance of company. It can
be identified that organization required to make product and market development strategy
by implementing the Ansoff Matrix which helps to decide business upon their product and
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market growth strategy in a better manner. Further, the report also summarized that it is
important to enhance company's profits up to a major extent leading to incorporate better
pricing strategies for attracting customers. Moreover, it was identified that business
performance can be encouraged by making better approach to the customers so that it may
become successful in the market. Product and market development impact on the market
where customers make purchases and it is essential that according to needs of customers,
product should be designed for making higher profits in shorter time period.
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