Management Strategies of Zara and H&M: A Comparative Analysis

Case study
1

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Outline the management strategies of Zara and H&M.
.....................................................................................................................................................3
Conduct a SWOT analysis of both Zara and H&M....................................................................4
How appropriate is Porters 5 Forces model in analysing the Australian Fashion Industry?......5
Discuss the strategic lessons that you take away from this case for other Australian fashion
retailers?.....................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES:...............................................................................................................................8
2

INTRODUCTION
In today's business environment, everyday the complexities and competition are
increasing. This is the reason that organisations need to analyse their strategies which they are
suing in their workplaces (Duoyan, 2021). It is necessary for companies to identify their
strengths and weaknesses so that they will be able to formulate management strategies. This
report aims to comparing of giant organisations that are ZARA and H&M. This report will be
discussing management strategies of ZARA and H&M. In addition to this, it will also discuss
competition analysis, and the strategic lessons from the case study. In order to grow and make
the business successful, it is necessary for an organisation that they should analyse all these
activities with the use of necessary frameworks.
MAIN BODY
Outline the management strategies of Zara and H&M.
ZARA and H&M both are the giant fashion retailers that are running their business in
global market. Their management style decides their growth and success. It is very crucial for
organisations that they should make their strategies effectively so that they will be able to get
competitive advantage (Tomaszewska, 2021). It is found that there are many risk that facing by
fashion retailers in the business environment. There are two important reason for risk that are
competition and continuous change in tastes and preferences of customers. That's why
companies need to formulate management strategies that assists organisations to perform more
effectively for overcoming with the risks. ZARA and H&M are two most successful
organisations in fashion industry that have a tough competition They are competitors of each
other.
ZARA is the Spanish-owned business which is not limited to the Spain as they are selling
their goods and services in global market. They opened their stores in Australia in 2011. From
that period, they are continuously growing their business very well. ZARA is focusing on the fast
fashion model, this is the reason that they change their trends in just three weeks. It is found that
they give permission to the store managers that they can take own decisions independently of
3