Zara Business Report: Porter's Five Forces and Market Analysis

This report provides a comprehensive analysis of Zara, a prominent clothing and accessories retailer. It begins with an introduction highlighting the importance of business elements for achieving positive results and profitability. The main body delves into the fashion industry, Zara's market position, and its competitive advantages. It examines Porter's Five Forces model to assess the company's internal environment. The report further explores factors influencing Zara's approach, including supply chain management, pricing strategies, and advertising. The analysis covers brand attributes, consumer expectations, competitor analysis, and consumer perceptions. The report also examines the impact of various factors on Zara's business performance, such as customer demand, competitor strategies, and business strengths. The conclusion summarizes the key findings and emphasizes the importance of adapting to market trends. The report provides an overview of Zara's operations and strategies within the fashion industry.

BUSINESS ESSENTIAL

Table of Contents
INTRODUCTION..............................................................................................................1
MAIN BODY..................................................................................................................... 1
Fashion industry...................................................................................................... 1
Position of Zara........................................................................................................2
Porter's five forces model........................................................................................ 3
Competitive advantages.......................................................................................... 5
Factors that influence to approach...........................................................................6
CONCLUSION................................................................................................................. 7
REFERENCES.................................................................................................................8

INTRODUCTION
In order to attain effective results, business consider various elements which
needed to promote function and operations. It is important element to produce positive
results and function at workplace. With the help of providing various elements, the
company can get more profits and revenue at workplace (Bernstein, 2015). With the
help of different activities and actions, there are various elements which achieve to
ascertain successful programs. In this context, present report is based on Zara which is
clothing and accessories retailer in Arteixo and Galicia. The company has more than
2169 stores in 408 location in all over the world through they are earning more revenue
and profits at workplace. However, there are various competitors are also takes place
within the market such as Chanel, Burberry, Prada and Gucci etc. (Fleisher and
Bensoussan, 2015).
For focusing on the present company, report covers positioning of the enterprise
which assist to create effective results and performances at workplace. In this aspect,
there are various elements included which focuses profitability of the enterprise in
effective aspect. Furthermore, it analysis porter's five forces model element which assist
to assess the Zara also focusing on attainment competitive advantages that affected
through different factors and elements. At last, factors are explains which assist to find
impact on the business performances (Calder, 2014).
MAIN BODY
Fashion industry
Fashion industry is very popular and effective businesses which take place in
clothing, footwear, accessories, body and many other products. It is distinctive and
constant trend in which person is dresses. Fashion is the best defines in clothes,
accessories or mas apparel industry. It encompasses with the design, manufacturing,
marketing and distribution, etc. to promotes apparel. After slowdown of 2016 market,
London demanded to grow fashion slight recovery in 2017 with growing outcomes
around 2.5 to 3.5%. In this aspect, macroeconomic indicators includes GDP growth
forecasts which reflect to US and UK. With the help of fashion survey, increasing growth
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categorized and sentiments around 40% of respondents that improves in 2017 (10
Trends That Will Define the Fashion Agenda in 2017, 2017).
In 2017, general growth of value and affordable luxury segments believes on
growth of the sales. In this aspect, market segment performances creating trade up
discount with value. There are certain sources are also implemented that grow industry
performances in 2017 than 2016. Industry player are also aware towards challenges
that are faced in 2017. Fashion executives also continue see competition with online
players as per challenges for nest year. Advertisement is playing very important role in
focus on organic growth of industry plan. It assists to make focus on industry for
enhance profits on continuous performance management. In this aspect, there are
various businesses play vital role in creative fashion outcomes such as Zara, DAKS,
Hardy Amies, Joseph and Merc Clothing, etc.
Position of Zara
Zara has the effective position in term of providing high quality clothes that are
based on consumer trends. It will be reported to make strong trading to take high
market share from other competitors. With the help of providing material at low cost, in
fashion industry they have gained more than 20% up market share in six months
(Schuster and Hunter, 2016). Hence, they are able to operate their new store in the
market in different areas. In addition to this, it is the good position that make effective
results to establish new store. Dramatic growth of the market is determines at discount
rate that assist to meet with goals and objectives (Frizzo-Barker, Chow-White and Ha,
2016). With the help of providing various types of design, the chosen company is
producing more than £450 million per month.
In addition to this, Zara has set up their own factory in 1980 so that they can
upgrade their production. Hence, it is the effective position to the enterprise to expand
their market in other countries which follows world panel fashion. To make effective
position, the company is taking raw material from various countries which also making
relations with many persons (Ferro, Ferro and Høgevold, 2017). In order to make
effective brand position, following attributes considering that create effective results on
position of the company:
Brand attributes
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Zara is working on brand that delivers effective features and benefits to each
customer. Hence, it creates positive impact on the business and its operations.
Consumer expectations
The chosen firm is providing products and services as per consumer expectation
so that it would be beneficial to ascertain effective results (Obal and Lancioni, 2013).
Each customer got effective value in product and services that receives through brand.
Competitor attributes
In addition to this, to make position Zara is also analysis their competitors
attributes. In this way, the company is seen brand which determines by its competitors.
Its features and benefits towards customers also evaluates that grows results and
performances in UK market (Newport and Shain, 2014).
Price
Price is crucial factor which creating effective results and performances at
workplace. To make effective position, the company need to select their effective price
which create impact on customer. In order to dealing with different elements, price need
to be set as per convenience to customer and market condition of enterprise as well
(Fritscher and Pigneur, 2015).
Consumer perception
Consumer perception is determines as quality and value which create brand in
person mind. This is because, sometimes customer is attracts through cheap product,
good value and money element as well. It assists to grow effective outcomes within the
market (Grublješič and Jaklič, 2014).
Porter's five forces model
This analytical framework determines model which is widely used by managers
and investors. It assists to analysis internal environment of the company which focuses
on effective decision-making system. In this model five elements explains performance
of Zara. They are as follows:
Threat of new substitute (moderate/low)
Fashion industry is very effective businesses which have many competitors
waiting for determines new trend in market. The chosen firm is providing effective
products that are ahead from competitors and up to date in market (Srinivasan,
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Srinivasan and Humes, 2017). It is the partially value which creating for valuable brand
in the enterprise. Furthermore, the Zara is also charging reasonable price as compare
to other competitor.
Threats of new entrance (Low)
With the help of unique characteristics, customer are easily attracts with making
investment in entering new places. It is very difficult to gather various customer in short
time. Thus, another businesses cannot easily take place in new areas. In this way, Zara
has positive impact due to effective customer base within the environment (Purvis,
2016).
Bargaining power of buyer(High)
This power is lies in hand of customer due to their purchasing and preferences.
There are various customers that are loyal towards Zara so that the company can easily
demonstrate their operations. This is because, the company has various competitors
but due to effective products and material, chosen enterprise can gain competitive
advantages.
Bargaining power of suppliers (Low)
Zara and another fashion industry have very few suppliers so that it would be
beneficial to attract potential customer at workplace. Through attracting very customer,
the cited firm can provide merchandise in effective way. Hence, suppliers has less
power because, the cited firm can purchase products from another company as well.
The chosen firm has no choice to purchase raw material from the market. Buyers are
more sensitive towards price of product and services. Therefore, the chosen firm is
putting more pressure on suppliers to reduce price for raw-material so that they can also
provide products on less cost.
Competition rivalry (Moderate)
In today's time, there are not many organisations operate function and operations
as Zara. Thus, uniqueness features of the company assist to earn more profit from the
public without any spending of large sum of money. Therefore, the cited firm will easily
accomplish effective market share at workplace. There are only some fashion industry
exist in market that provides same product and services at low prices. Hence, there is
no choice to provide products with vast range. Competitors of the chosen firm is also
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determining their function and operations to attract more customer within the enterprise
(Ferro, Ferro and Høgevold, 2017).
Competitive advantages
In order to gain competitive advantages, there are various elements which need
to be focused by the firm. This is because, it assists to make ahead business products
and services from the other enterprise. Following points need to be considered by Zara
in their business: Focus on customer demand and requirement: In respect to achieve
competitive advantages, fashion industry need to assess customer demand and
requirement. This is because, in this way, they can easily contact with various
customer together. Hence, their profits and revenue will be enhance that reveals
to get proper functioning in firm (Srinivasan, Srinivasan and Humes, 2017). This
process is also helpful to maintain loyalty towards the customer in business so
that they will come again and again to purchase products. Look towards other competitors: Moreover, the company should focus on their
competitors performances as well. This is because, with the help of focusing on
competitors outcomes, Zara can also implement new elements and design in
their operations. In addition to this, looking towards competitors performance it
assists to enhance knowledge for competing within the market (Ferro, Ferro and
Høgevold, 2017). As results, the chosen firm will make their products effectively
that promoted through different advertisement and publications. Examines business strength: In order to attain positive business results, it is
important to analysis company strength. In this aspect, Zara focuses on their
positive outcomes and activities. For example, there are wide variety of fashion
products such as clothing accessories, effective procedure to supply product and
services, etc. Through focusing on these activities, they can promote business
results in wide variety (Purvis, 2016). As results, products will be exchange
quickly that are not enhances sales and profits of the business. Review the business activities to reduce cost: In order to attain competitive
advantages, Zara has also responsibility to review its activities. It assists to
enhance outcomes with developing results and performances. With the help of
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focusing on these activities, enterprise will easily maintain their positive results.
In addition to this, they can also find loopholes which reduce business profits and
create problem to expansion of the enterprise (Fritscher and Pigneur, 2015).
 Focus on quality of products and services: Through determines effective
results and performances, Zara need to focus on their quality material. This is
because, it assists to grow results and performances in effective way. Through
targeting customer on effective products quality, the company can easily deal
with competitive advantages (Grublješič and Jaklič, 2014).
Factors that influence to approach
In order to make effective results and outcomes, there are various elements on
which Zara need to focus. They are as follows:
 Supply chain: Zara is the biggest company that supply variety of clothing and
accessories, etc. in one industry. In this way, the company is involves sequence
of production and distribution of different commodity. It assists to maximize value
of customer within the enterprise which assist to get effective competitive
advantages. It also represents conscious efforts that develops and run in
effective way (Frizzo-Barker, Chow-White and Ha, 2016). In every year around
12000 design are implemented by Zara that create effective results at workplace.
It makes creative supply chain in different areas of the world.
 Pricing: In order to make effective results and outcomes, fashion industry can
work on aggressive pricing strategy. This is because, in UK market there are
various customers take place that are purchase products and services from
another competitors. The company is providing different types of products and
services which are differs from competitor product. Hence, it will create effective
results on performances to make various segmentation (Srinivasan, Srinivasan
and Humes, 2017).
 Advertisement: It is another factor which create impact on the business
operations and performances. With the help of advertisement, the company is
providing knowledge towards different types of products and services. In this
way, fashion industry will easily promote Zara results. The company can use
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advertisement in term of social sites, sales promotion, and many more aspects
(Grublješič and Jaklič, 2014).
 HR: Human resource is another key factor which create impact on the business
performances. In order to achieve the positive results, HR of Zara has
responsibilities to manage workflow in effective way so that objectives can be
achieve. With the help of different types of HR policies, the company can easily
develop effective results at workplace (Schuster and Hunter, 2016). In this way,
the organisation can maintain their results which assist to grow performances in
different areas of UK.
CONCLUSION
From the above analysis, it can be concluded that Zara is well working in the
business to provide different types of clothes to children and women. In addition to this,
they are also providing accessories, bags, etc. Through focusing on business
outcomes, report summarized about positioning of enterprise which make effective
position to operate function and operations within the market. In this aspect, report
included various elements such as brand attributes, competitors attributes, consumer
choice and many more. These elements assist to get effective position of the company
within the market. Furthermore, report articulated about porter's five forces model which
includes competitive rivalry, threats of new entrance, threats of substitute, bargaining
power of buyer and bargaining of suppliers. These elements provide knowledge of
market in which Zara is operating.
Moreover, report articulated about competitive advantages which need to be
taken for understand effective results and outcomes. Through focusing on customer
demand and requirement, examination of business strength, review of business
activities and quality of products and services, the chosen enterprise will easily develop
their functions and operations in the market. In addition to this, report also concluded
about factors which influence to the enterprise approach in term of supply chain, pricing,
advertisement and HR policies. In this aspect, business can easily make their effective
position in market.
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REFERENCES
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in connection to business sustainability efforts in supply chains. Journal of
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Schuster, L. and Hunter, M., 2016. Human Resources Strategy and Change: Essentials
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