BM627: Innovation Report on Zara's Business Strategies

This report provides an in-depth analysis of Zara's innovation strategies within the apparel industry. It begins with an executive summary and an introduction that outlines the report's purpose: to examine Zara's innovation performance and its market position. The report then delves into Zara's history, its organizational structure, and its innovation capabilities. It explores the company's strengths, weaknesses, opportunities, and threats (SWOT analysis) and its ability to adapt to market changes. The report also examines the industry landscape in 2021, discussing trends and challenges that impacted the fashion industry and how Zara navigated them. The conclusion summarizes the key findings and emphasizes the importance of innovation for Zara's continued success. The report uses various models and theories to analyze Zara's innovative practices and provides insights into its future growth potential. The report uses various academic sources to support its analysis. The report is a comprehensive review of Zara's business strategies.

Managing innovation in business

Executive summary
This report is about the innovation and progress in the Zara, as it is the apparel industry and
work very hard and effective for making its own position in market. The report include, and
tried to understand business requirement which must be related to growth and sector of the
company. Some major changes and growth are essential and related to effective growth and
UK market in the industry. In order to gain the environment of 2021, different theories,
model and progress are used to work and manage the activities in unauthorised manner. This
method is related to provide some effective management to provide some major changes and
growth with innovation and module presentation.

Table of Contents
Executive summary....................................................................................................................2
Introduction................................................................................................................................4
The organisation and industry overview....................................................................................4
The organisation history.........................................................................................................4
Innovation performance and capabilities...............................................................................5
The industry in 2021..............................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9
Books and Journals................................................................................................................9

Introduction
Innovation is known as the effective process of transform the ideas and make more
specified thoughts to the very new products. The main purpose of this report to analyse the
development report which is related to innovation proves in the chosen company. The chosen
company is Zara, an apparel company. It was founded in 1974 and its headquartered is in
Spain. This report analyse the overall process and make innovation management in the
company to work and make progress to attain the strong and effective position in market (Aas
and et.al., 2021). This report divided in three section, organisation history, their innovation
capabilities and performance, in last the future trend of 2021 of company.
The organisation and industry overview
The organisation history
Zara, is one of the most successful fashion industry that may introduce the culture for
make effective responsible and outstanding culture to provide and make more reflective and
effective changes. Zara able to sale men and women clothing, children’s clothing, shoes and
many more accessorised which are related to provide major changes and growth. The
company is founded by Amancio and Rosalia in 1975 and this business is take away to
expand the nature of Spain and provide relevant changes and growth in the management
(Betz and Jung, 2021).
Now Zara are working in more than 88 countries and 3000 above stores outlet in
across the world. It has no surprise that Zara start its business in Spain outlet and now it is
working in all over the world with one of the largest retail industry in fashion sector. Today,
Zara fashion group has more than 174000 employees and make an operations in 7,400 stores
that actually provide a support to the company in a very significant and authorised manner.
Setting up the brand in the most competitive world, which are related to make different sector
to make brand image in silver spoon or good luck facilities (The Secret of Zara’s Success: A
Culture of Customer Co-creation, 2021).
Zara are able to make effective success and make more significant approaches to work
and provide relevant innovation in the most effective fashion industry.
 When it comes to the history of Zara, it can be redefined and make more systematic
and management process of different cores values and make simpler design as per the
taste of their targeted audiences.

 Only few brand can keep them to latest technologies, fashion while maintaining the
higher quality services to make effective maintaining process. Form the small retail
outlets in 1974 and now become 4th largest international fashion brand for the
company is very achieving and successful invent.
 Zara make more luxury brand as per the demand of the customer and make more need
and demand for their own quick and approached review. It would be related to make
more significant and growth approach for the company’s success and achievement.
While maintain all of these it is important for the business to work and manage the
activities which are helpful for addressing and managing four dimension of innovation space
that actually help the company to work and grow in their past:
 Product Innovation: Zara has varieties of products which are related to growth of the
company form luxury to normal (Duodu and Rowlinson, 2021). It will be relate to
provide some major changes and growth to provide some worldwide facilities and
system to help in achieving product innovation.
 Process Innovation: This is related to provide the process of manufacturing unites
and make more sustainable activities to work and sustain effective changes in the
market and growth analyse. Some major changes and growth are related to work and
make significant approaches to assign the task.
 Position Innovation: Zara has their own footprints across the 88 countries and have
more than 4000 retail shops for reaching large number of customer. Further, now they
have online access which can be helpful for assigning more positions.
 Paradigm Innovation: This may include the social aspect, behavioural pattern and
ethical morals which are effectively followed by the company to make more effective
approach to the company in order to achieve different sector.
Innovation performance and capabilities
Innovation is the successful for make an exploration to work and manage different
sector to growth in make sure for new ideas, innovation and make effective changes in the
need to work as the brand (Katou, Budhwar and Patel, 2021). The need to work and make
some major changes to analyse and make effective premium and eventual growth in the
market aspect and their position. More than 18000 employees who are working in Zara are
able to face the innovation performance review and capabilities to work and manage the
sources in more significant and authorised way.

There are different ways which are helpful for the company to work and performed
the functions as per their own capabilities. With the help SWOT analysis the company are
able to define their performance:
 Strength: Zara always try to follow some unique and different challenges which are
related to work and manage the activities in more authorised and significant manner.
Zara try to launch RFID technology which are essential and helpful for collecting data
in their all stores (Olowookere, 2021). With the help of different varieties and major
changes some effective adoptability are essential and helpful for addressing and
majoring some success for achieving and addressing effective growth to accomplish
major and effective growth in the company.
 Weakness: With the impact of major pandemic Zara are able to limit their number of
physical stores which make the declining growth rate of the company. Zara try to
bring more customer as complete their basic requirement rather than promoting their
products more through advertisement and disclosure process. Further, the high rate of
the competition make more difficulties for the Zara to work and maker progressive
report to analyse and interpretive the major changes.
 Opportunities: The biggest opportunities for the company is to make effective
customer experience and able to make major customer services to make Zara usual
approaches and provide reality to analyse and interpretive the data in more significant
major. With the help of online trend, Zara can make the high range of competitive
analysis with the help of less investment in Zara. Further, they can expand their
business at online platform and make collaboration with other companies as well.
 Threat: Nowadays, people are become more conscious and make an impact on
fashion and environment relation. Thus, Zara should be able to make more strengthen
and effective approaches for fast fashion and a sustainable industry. There are large
number of competitor in market who are able to deal and work with the management
process which can be H&M, Mango, Gucci and many more (Schmidt, 2021). That are
able to provide effective support and make sufficient challenge for the growth of the
company.
With the help of effective and strategic changes, the company are able to provide some
major changes and adoptability to work and provide major changes for make profitability
ratio in market. This can be related to work and make more sufficient resources and provide
some major changes to work and analyse the growth to accomplish major changes in the

Market. As per the innovation team of the Zara are able to provide relevant support and make
effective couple of innovation which can be related to work and make more effective changes
related to marketing the product, design the best way as possible and make an efficient team
to manage the growth of the company in more authorised and promoting way (Tan and Cha,
2021). Thus, this company are able to make more significant and successive image to the
company in market and complete all the preferences and market demand of the customer in
order to gain more market share.
The industry in 2021
When it comes to the fashion industry, it can be said that will be contracted to 27 to
30% in 2020 or 2021. Although the company and this industry can face the major regimes
and positive growth in the end of 2021 which are related to 2-4% growth in market. Most of
the fashion industry are decline due to covid-19 impact and many other challenges which are
face by the companies to attract and identified customer in more effective and strengthen
courses. It will be related to make more effective and appropriate company to work and
manage the activities to work and make essential sources to apply in management and
approaching concepts.
The global fast fashion industry are able to work and make more strengthen
approaches and expected to grow in $25.09 to $30.57 in 2021, as after facing the outbreak of
covid-19 (Vendrell-Herrero, Bustinza and Opazo-Basaez, 2021). the growth of the fashion
industry are decline in last year due to major outbreak diseases of the company to analyse and
interpretive the major changes for addressing and analysing effective growth to accomplish
the nature in specified time period. This can be expected that the company are growing in
next 10 years with their most effective growth and earn high amount of revenue which are
decline in last two years due to several challenges and natural reasons (Worldwide Fast
Fashion Industry to 2030 - Featuring Zara, H&M and Fast Retailing Among Others, 2021).
The growth of the industry are decline due to covid-19 are now resuming their
operational activities which are related to their own progress and management to work and
make more effective growth to the company. All of these are related to work and manage the
social distancing issues, remote working, shift all the business at online portals. Moreover,
due to closure of social distancing, company are not able to commercialise their activities and
innovation which are done by the company to their customer. This is related to work and

make more strengthen approaches for designing and managing concept to analyse different
sector for growth in market.
This report further, cover the future of the fashion industry, which are mainly related to
the segmentation, regional and country aspect to analyse the market size. Further, after
analysing and covering the position some major sector are related to analyse different
countries and make issues due to cocid-19. Zara are able to produce effective change
management, innovation and providing relevant growth in the future of company. Which help
the company to work in highly competitive market and make more strengthen approaches to
work and make more effective growth to the company. Some major changes are related to
sales of clothing and apparel in the trend for the major growth and achievement in fast market
sector (Wu, Wei and Wang, 2021). All of the trend and customer preferences with the high
quality are maintained by Zara and now it can be related to approaches and make effective
growth for analysing and using effective change management to work and make more
strengthen approach for the growth of the company. It would be able to work and make more
effective growth and provide future changes in market growth.
Conclusion
As per the report, this can be seem that the fashion industry are growing and working
very fast in the nature of business. Innovation gave the support to organisations, and make
more effective operational cost to determine and manage the efficient sources to achieve the
gaols. Zara, one of the leading fashion industry are able to work and manage their activities
on the basis of different sector and provide effective competition to the other companies like
H&M, PUMA and many more. After facing so many challenges the company are able to
work and make more significant approach in 2021 that must be related to covid-19 and their
strategies based solution.

References
Books and Journals
Aas, T.H., Hjemdahl, K.M., Nordgård, D. and Wästlund, E., 2021. Outbound Open
Innovation in Tourism: Lessons from an Innovation Project in Norway.
In Managing Open Service Innovation (pp. 167-185).
Betz, C. and Jung, R., 2021. Conceptualizing and Analyzing Business Ecosystem Service
Offerings. In Proceedings of the 54th Hawaii International Conference on System
Sciences, 2021.
Duodu, B. and Rowlinson, S., 2021. Intellectual Capital, Innovation, and Performance in
Construction Contracting Firms. Journal of Management in Engineering, 37(1),
p.04020097.
Katou, A.A., Budhwar, P.S. and Patel, C., 2021. A trilogy of organizational ambidexterity:
Leader’s social intelligence, employee work engagement and environmental
changes. Journal of Business Research, 128, pp.688-700.
Olowookere, K., 2021. Managing Family-friendly Policies. Financial and Managerial
Aspects in Human Resource Management: A Practical Guide, Emerald Publishing
Limited, pp.107-117.
Schmidt, A.L., 2021. Managing in the face of disruption: how do companies manage business
model innovation along the process of disruptive innovation?.
Tan, J. and Cha, V., 2021. Innovation for Circular Economy. In An Introduction to Circular
Economy (pp. 369-395). Springer, Singapore.
Vendrell-Herrero, F., Bustinza, O.F. and Opazo-Basaez, M., 2021. Information technologies
and product-service innovation: The moderating role of service R&D team
structure. Journal of Business Research, 128, pp.673-687.
Wu, L., Wei, Y. and Wang, C., 2021. Disentangling the effects of business groups in the
innovation-export relationship. Research Policy, 50(1), p.104093.
Online
The Secret of Zara’s Success: A Culture of Customer Co-creation, 2021. [Online]. available
through: < https://martinroll.com/resources/articles/strategy/the-secret-of-zaras-
success-a-culture-of-customer-co-creation/>.
Worldwide Fast Fashion Industry to 2030 - Featuring Zara, H&M and Fast Retailing Among
Others, 2021. [Online]. Available through: < https://www.prnewswire.com/news-
releases/worldwide-fast-fashion-industry-to-2030---featuring-zara-hm-and-fast-
retailing-among-others-301298668.html>.