Business Development Report: Strategic Analysis of Zara's Operations

This report provides a comprehensive analysis of Zara's strategic management, focusing on its fast fashion model and supply chain effectiveness. The report examines Zara's strategic management functions, including planning, organizing, leading, and controlling operations. It highlights Zara's quick design and delivery of products, its use of technology for sales analysis, and its SWOT analysis, which assesses internal strengths and weaknesses, and external opportunities and threats. The report also explores Zara's competitive advantage through just-in-time production and efficient supply chain management, including product shipping and distribution. It further discusses the impact of both internal and external factors on Zara's success, and the importance of online retailing for improving sales and competitiveness. The strategic implications of Zara's moves to meet customer demands are also addressed.

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Management 1
Contents
Question 1:.......................................................................................................................................2
Question 2:.......................................................................................................................................2
Question 3:.......................................................................................................................................3
Question 4:.......................................................................................................................................4
Question 5:.......................................................................................................................................5
References........................................................................................................................................6

Management 2
Question 1:
The strategic management contains of all basic functions of the management like
planning, organizing, leading as well as controlling the operations that are illustrated within the
case (Lasserre, 2017). It is presented in this circumstance story when Mr Ortega introduced their
main Zara apparel store. Zara organisation model is clear as business wants to trade high-fashion
look-alikes to price-conscious Europeans. The case illustrates strategic management when
company decides for the fast fashion in which the company decides for the fast fashion which
includes quick design and offering the same to the customers in the next two weeks. The design
of the company takes only two weeks through which they can get the design on their stores. This
shows the strategic management because it allows the company to perform the fast turnover of
their clothes which helps them to generate high revenue. The company has a long row of
computers and this is how they scrutinize their sales at every store of Zara. Furthermore, through
this strategy, the company will be able to understand what is being sold in their stores the most
which helps them to meet the needs of the customers.
Question 2:
Zara Company is maintained by Spanish fashion retail group Inditex SA identified that
the achievement in world of fashion which is founded on the simple law that gets trendy as well
as products which are majorly desired to market quickly. The company has the clear as well as a
focused understanding of technology, fashion and their marketplace as well as the capability to
familiarize rapidly to trends. SWOT study is a tool which includes both inside (strengths and
weaknesses) and external (opportunities and threats) analysis. It has been witnessed from the

Management 3
case that SWOT analysis is supportive for totally the companies to include the Inditex executives
as well as the Zara store administrators as it is evaluation of business strengths, weaknesses,
opportunities and threats. SWOT analysis tool helps Inditex administrative and store supervisors
by conducting the study of the opportunities that help business to produce and enlarge the
operations (Gürel & Tat, 2017). Along with this, managers and Inditex executive can conduct the
study about the related threats to the business which include the trends in the external
environment. On the other hand, the internal examination strengths of the Zara Company is that
stores of Zara are stocked fully with the new designs present double a week that shows the
motive of fast fashion. It also shows the strength of the company that they have a strong supply
chain which allows the clothes to be available in stores (Dyer, 2019). On the other hand, major
weakness of business is its competitors who are working faster than Zara. This allows the store
managers and Inditex executive to introduce new ways that help them to deal with competitors
which shows that SWOT analysis is helpful.
Question 3:
In the case study, it has been found that the Zara Company is pursuing fast fashion and
effective supply chain management. The company competitive advantage of fast fashion is
successful because of the Just-in-time production that offers a competitive advantage in terms of
flexibility and speed (Copacino, 2019). The company effectively exploit this competitive
advantage as they take approximately 2 weeks to develop a new design from drawing board to
store so that they can sell their products to the customers. Further, the company exploit the
supply chain management effective by ensuring that products are shipped to the stores or not. In
European stores, the company send their products through loading dock and truck with the

Management 4
additional deliveries in order of delivery. Zara sends their other products at different locations
through a plane. In the case, this has been found that Zara delivers some 60,000 items each hour
and over than 2.6 million items a week. This entire shipping is possible from the ultra-
sophisticated distribution centre. In the entire, supply chain of the company, the employees
contribute effectively as they are the one who monitors the entire processes.
Question 4:
From the case study illustration, it can be said that Zara success is possible with the help
of both the internal as well as the external factors. From the case study, it has been found that
headquarters of the company have a long row of the computers that helps them to analyse the
sales which present the fact about what fashion trends are considered as hit and miss as per the
needs of customers. In addition, as soon as the designs in factor across the street then electronic
machine perform the operations in which they minimize the entire waste, computer contributes in
arranging and rearranging the entire clothing designs on enormous material roles earlier the laser
cutting. Further, effective implementation of JIT approached helped the company to attain
success (Smith, 2019).
On the other hand, talking about the external factors witnessed in the case Zara found that
the slow pace of the clothing market. Further, the competitors are external factors that motivate
the company to take the decision. This is the reason due to which company bring the new
techniques that allow the store manager to order and earlier sell their products which is essential
for the success of the business.

Management 5
Question 5:
Online retailing is essential for Zara as it not only allows in improving the sales but it
also to compete with the competitors present in the market. The company always think about the
new plans to meet the growing needs of customers (Rothaermel, 2017). The strategic implication
that this move has is that they possibly have a way to send the orders to the client’s home in the
quick fashion which is their capability. The reason behind it is that customers are not willing to
wait for a longer period once the order has been placed. The strategic implication that this move
brings is that sales of the company will boost and they can easily understand the needs or desires
of the customers. This has been found that effective supply chain and attaining the desires of
customers are the capability of Zara that they can use this for their business. The strategic
implication is the company can make use of human resource in tracking and monitoring the
delivery to clients (Guesalaga, Gabrielsson, Rogers, Ryals & Cuevas, 2018).

Management 6
References
Copacino, W. C. (2019). Supply chain management: The basics and beyond. New York:
Routledge.
Dyer, J. (2019). Strategic management: Concepts and cases. Wiley.
Guesalaga, R., Gabrielsson, M., Rogers, B., Ryals, L., & Cuevas, J. M. (2018). Which resources
and capabilities underpin strategic key account management?. Industrial Marketing
Management, 75, 160-172.
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Lasserre, P. (2017). Global strategic management. Macmillan International Higher Education.
Rothaermel, F. T. (2017). Strategic management. New York, NY: McGraw-Hill Education.
Smith, A. D. (2019). JIT Inventory Management Strategy. In Handbook of Research on
Transdisciplinary Knowledge Generation (pp. 57-74). IGI Global.