Innovation and Enterprise Report: Zara's Smartwatch Product Analysis

This report provides a detailed analysis of Zara's planned launch of a smartwatch, examining its innovation strategy within the fast-fashion industry. It begins with an introduction to the concept of innovation and its importance in business, followed by a background of Zara and a description of the company's current market position. The report then delves into the discussion related to literature, exploring idea generation techniques such as brainstorming, mind mapping, and role-playing, along with the application of the diffusion theory of innovation. A critical analysis of the proposed smartwatch product is conducted, evaluating its potential impact on Zara's customer base and market share. Finally, the report offers recommendations to enhance the product's success, including employee training and marketing strategies, concluding that innovation is essential for business growth and achieving a competitive advantage. The report emphasizes the importance of market research, understanding customer needs, and effective promotion for a successful product launch.

Innovation and
Enterprise Assessment
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Table of Contents
INTRODUCTION.......................................................................................................................................3
Background of organization and situation description.............................................................................3
Discussion related to Literature...............................................................................................................4
Critical analysis of product......................................................................................................................6
Recommendations...................................................................................................................................7
CONCLUSION...........................................................................................................................................8
REFERNCES............................................................................................................................................10

INTRODUCTION
Innovation is the idea which needs to transform in real context for bringing creative as
well as advance product and service in marketplace. In business, innovation is highly important
for creating difference and gaining competitive edge over other competitors. It is stated that idea
generation is crucial for innovation under which unique idea is developed which has not been
present in the market so far (Dang, Wang and Hao, 2020). The present report is based on Zara
which is a renowned company of fashion industry and offers a variety of products such as
clothes, fashion accessories & more at global level. Now, the company is planning to bring an
innovative product for meeting with current market trends in significant manner. The present
report comprises backgrounds of organization along with the detail regarding innovative product
by implying necessary theories of innovation and idea generation. Lastly, some appropriate
recommendations for getting better result in future period of time have also been included in the
following project.
Background of organization and situation description
Zara is a multinational company belongs to fashion industry that deals in variety of
products related to fast fashion industry. It offers range of products such as clothing, accessories,
beauty, perfume and more. It was founded in the year of 1975 and currently has nearly 2270
stores at global level. The company was first introduced in Spain and currently has presence in
different countries such as Brazil, Japan, Singapore and more. Zara deals in different categories
such as me, women, kids and more (Yang, Ying and Gao, 2020). By this way, they are targeting
to a large segment of customers belong from different category. It has association with inditex
which is the largest distribution group at global level. Zara is known for providing designer
clothes to customers and ensure higher sales through their vast retail network. It is considered as
one the luxuries brand which has positioned itself in the premium category. Majority of the
customers of Zara are premium customers who belong from higher income group of society. It
produces product based on the market trend for meeting with requirements of customers in an
efficient manner.
According to the requirement of current market place, company is looking forward for
bringing innovation in terms of smart watch which will help them in establishing remarkable

presence in global market place. It will help in gaining attention of more number of customers
and significantly enhance overall level of sales and profit margin of organization. The watch will
include a lot of different feature by which customers can maintain their daily schedule and
activities in an efficient manner. It will keep a track over activities of customers and provide
them reminders so that they can complete all the schedule tasks within the day. It can be operated
as well as controlled by voice. Main aim behind the launch of smart watch is to gain an edge
over competitors and stay in market for longer duration. It is analyzed that Zara is in the fashion
industry for a longer period of time so it will be easy for them to gain acceptance from
customers. With this, company can easily inflate its current level of sales & profit margin
significantly.
Discussion related to Literature
For success of any organization innovation play an essential as it help an organization to
achieve competitive advantage in market. If, an organization wants to achieve higher growth
they need to bring creativity in their products and services. For developing any innovative
product idea generation play an essential role. For effectively understand the process of idea
generation which is used by Zara is discussed below:
 Generate and collect ideas: The first step of idea generation process is to generate and
collect information related to innovation. In context of selected company, they effectively
analysis their product and identify the problem. Other than this they will conduct proper
market research from where they can analysis the requirements of their customers and
bring various new ideas of innovation (Bolton,Goosen and Kritzinger, 2021).
 Evaluate idea: This is the second stage where the higher authorities of Zara will critically
evaluate all the generated ideas. They are evaluated that whether the generated idea will
already exist in the market or not. The higher authorities of selected company will
evaluate various ideas and identify the limitation and benefits for each idea.
 Prioritize idea: This is the third stage of idea generation in which on the bases of their
evaluation selected company will select the best idea which help in the growth of
organization. The selected idea will be analysis on the bases of cost, benefit and various
challenges faced by company at the time of implementation of that idea (Liu, 2021).

 Validate & test: In this step of idea generation the selected organisation will effectively
test the feasibility of that idea and various benefits in implementing that idea. In this step
selected company will analysis that for what time period that idea will be beneficial for
company.
 Implementation: This is the final stage of idea generation in which finally the idea of
innovation is implementing into reality. This is the most impactful stage of this process in
which the selected idea is apply in the real world. In context of Zara, it is very important
for them to effectively implement the idea so that they will achieve their desired results
(Ni, and et. al. 2020).
It is analysis that if, an organization wants to effectively runs their business in a competitive
market then they will require generating various new ideas of innovation. In context of Zara,
they will use various techniques of idea generation which are discussed below for better
understanding:
Brainstorming: It refers to a method which is designed to generate ideas. According to
this technique an individual is effectively use its mind and provide best solution related to a
particular problem. This method is widely used in organization for generating best solution
for their problem. In context of Zara, their all employees are free to give their suggestion for
a problem. It is analysis that brainstorming is the best tool for generating ideas (Sarkar and et.
al. 2020).
Mind mapping: It refers to a graphical technique which assists in developing technique
between various pieces of information. In other words it is a way of linking key concept
using image, lines and links. Mind mapping is used the concept of radiant thinking which is
thoughts radiate out from a single idea, which is often express as an image. In this method an
individual will write something on the paper and write all those things which are come in its
mind. After this they will try to connect both the current and previous information on the
page. It is analysis as the most crucial way of generating idea.
Role playing: According to this technique an individual will assigned a particular role
which is completely different from the personality of that person. Through this technique of
idea generation an organization is able to generate various creative and new ideas. This

technique is widely used in company which provides various innovative ides related to a
product and service (Squicciarini, 2017).
Theories of innovation
For long term retention of customers it is very important to provide something unique to
their customers and for this innovation in their product is very important. In context of Zara, they
will use Diffusion theory of innovation which is described below:
This theory is developed by E.M. Rogers in 1962, which is considered as one of the
oldest social science theories. This theory explains that how a new idea is adopted by an
organization and how it will implement within a specific period of time. It provides various ways
through which the idea of innovation is successfully communicated to the society and gets the
acceptance from the society. In context of Zara, they are looking forward to bring innovation by
developing new smart watch. By applying this theory selected company is able to get acceptance
from society related to their innovative products (Xiaolan, 2020).
Critical analysis of product
It is analyzed that Zara is looking forward to launch the smart watched in order to bring
innovation within company. With the launch of smart watches, they will be able to bring
uniqueness and creativity within market (Behrens, 2018). It is analyzed that Zara already has a
good customer base who are interested in innovative products. So, this launch will provide an
opportunity to company to enhance its current customer base significantly. Zara will ensure
higher quality in the new product which is important for maintain higher trust and faith of
customers in brand. The main reason of choosing this idea is the current market scenario where
technology is highly important and customers ate more used to with technology. It will not only
help to gain competitive advantage but also enhance current market share of company in
significant manner. Here, they will use appropriate methods for promoting the new launch
product. In this, they are going to use digital methods such as social media platforms, search
engine optimization and more for gaining attention of customers. They will list the product over
their website and also provide attractive offers over the purchase of new launch product. In the
present scenario, target customers of organization are youth, working professional who are tech
savy and wish to make significant use of available time. Zara will promote the product among

target segment efficiently for getting positive response. However, the launch of new product will
require higher cost as for this company needs to undertake extensive market research. They are
also required to gain insights about needs and requirements of customers and also need to put
significant efforts for launching product. In this, Zara needs to promote the new product at wide
level among target segment for getting positive response. It is stated that the launch will be
successful and will provide profound results to company by inflating in current level of sales and
profit margin.
Recommendations
 From above discussion it is recommended to selected company that they need to provide
effective training to their employees so that they will contribute their best in innovation
of new product.
 In context of selected company it is recommended that they need to conduct various
development programs for their employees so that they will enhance the knowledge and
skills of their employees and make them to provide various creative idea or the
betterment of organization.
 It is recommended to selected company that before implementing the generated idea
company first requires to check the feasibility of that idea. Selected company will check
its feasibility by analyzing the impact over cost and profitability.
 Another important recommendation for company is that they need to adopt extensive
marketing and promotional strategies so that they can get the positive response from their
customers.

CONCLUSION
From the above discussion on this report it is concluded that innovation play an essential
role in the growth and success of an organization. With the help of innovation an organization is
able to provide unique and creative products to their customers which make them to achieve
competitive advantage in market. This report will include the complete process of idea
generation which help in analysis that how an organization will generate the idea. There are
various methods of idea generation such as brainstorming, mind mapping and so on.

REFERNCES
Books and Journals
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an Automotive Enterprise. In Handbook of Research on Entrepreneurship, Innovation,
Sustainability, and ICTs in the Post-COVID-19 Era (pp. 133-159). IGI Global.
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enterprise technological innovation-------empirical evidence from Chinese industrial
enterprises. Applied Economics, 52(59), pp.6386-6399.
Keller, B., 2019, May. Digital innovation to drive intelligent utility enterprise. In 2019 IEEE
International Conference on Energy Internet (ICEI) (pp. 484-486). IEEE.
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