Strategic Management Analysis of Zara

Running head: Strategic Management
Strategic Management
Zara

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Strategic Management
Table of Contents
Introduction............................................................................................................................2
Top Management and Leadership Contribution.......................................................................2
Business Model of Zara............................................................................................................3
Vision and Mission..................................................................................................................3
Major Goals of the Firm...........................................................................................................4
Strategies of Zara....................................................................................................................5
PESTLE ANALYSIS.....................................................................................................................5
Porter Analysis........................................................................................................................6
Strategic Groups......................................................................................................................7
Retail Industry.........................................................................................................................7
Conclusion...............................................................................................................................8
References..............................................................................................................................9

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Strategic Management
Introduction
Zara is a very well known for selling apparels. It is a Spanish brand and was founded by
Amancio Ortega Gaona and Rosalia Mera in Artexio, Galicia. It was incepted in 1975. Zara is
mainly known for selling clothes and is a biggest retailer in fashion industry also known as
Inditex. It sells in 86 countries and the total number of stores it has is 1,763 across the whole
world. If talked about Inditex, it is in itself a very big retailer in fashion industry and is known
for the brands like ZARA, Pull & Bear, Massimo Dutti, Bershka, Oysho etc. Inditex for founded
much earlier in the year 1963. Zara has a different and unique business model and it is quite
innovative too. Due to this Inditex went on becoming the biggest retailers across world. Zara’s
first store was incepted in Spain. It promotes offers on clothing and fashionable design for all
people, men, women and children. For completing their product line, they became the sellers of
the accessories too (Inditex, 2015).
Top Management and Leadership Contribution
If the hierarchy of the firm is seen, at the top of the management, there stands the CEO and the
Chairman of the Firm. He is Pablo Isla and then follows Zara’s directors. They are the main
decision makers of the firm and they control the firm. The directors in Zara create and manage
the future goals of the company so as to maximize the value of the firm if seen in the long term.
The board of director’s duties involves decisions making in terms of domains like administration,
management and company representation and also daily management in day to day basis. At the
same time, they also address the competencies of the management that involves the seniors and
liaising with the stakeholders of the firm. They also look after the ethical and social duties with
respect to the stakeholders. The other domain consists of the Audit and control, Nomination and
remuneration and ethics committee (Huiru, 2011).
All these people bring good leadership in the firm and they make people learn from their positive
experiences.

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Strategic Management
Business Model of Zara
Business Model of Zara
Source: (Inditex, 2015)
The business model of Zara actually is based on this principle that it is able to sell medium
quality fashion clothing at good reasonable prices. The keep to the procedure lies in the skill of
Zara for tuning in to customer’s personal tastes in order to provide them what they are looking
for and asking for. For doing so, there are approximately 200 designers who sit at the
headquarters of the company in Spain and continuously collect knowledge about the decision
made by the users in each store of Zara. They try and give the latest trends that their self scouts
see in the lanes and streets and malls to get some inspiring creations and also, the logistics of
Zara’s products id done in the company of Zara itself. The advantage of this strategy is that it
provides Zara flexibility for adapting the changes of the consumers in fashion (Verma, 2016).
Vision and Mission
The vision of the company is that it is dedicated to satisfy the customers and their desires. For
maintaining this vision, Zara pledge about regularly innovating the business for improving the
experience. They swear to provide the customers with the new designs that are made of fine
quality materials and the prices are reasonable.