Zara and H&M
H&M
&
Z A R A
Date: 24/10 2008
Table of contents
Introduction p. 3
Zara
Company presentation p. 3
Generic strategies p. 3 & 4
Growth strategies p. 4 & 5
Pest analysis p. 5 & 6
Value chain p. 6 & 7
SWOT analysis p. 7 & 8
Price / quality Grid p. 8
H&M
Company presentation p. 9
Generic strategies p. 9
Growth strategies p. 10
PEST analysis p. 10 & 11
Value chain p. 11 & 12
SWOT analysis p. 12
Zara and H&M
Comparison of the 4 P’s p. 13
Porters 5 forces p. 14
Comparison of the value chain p. 15
Group reflection Enclosed
* Introduction
We have been given an assignment, where we have been divided into groups. In our group we have analyzed two companies, namely Zara and H&M. These two companies are both very big companies within clothing. The fashion business is very tough, and we will explain to you what we believe the two companies does well in this hard business, and why this is good. We have been giving time to solve the assignment in some of our classes with Gitte and Peter, the rest we have made at home. After we have analyzed the two companies we will compare their 4 P’s and their value chain, likewise we also will make a five forces analysis.
Z A R A * Company profile – Zara
Zara is a very big clothing chain from Spain. The chain was founded in 1975 by Mr. Ortega, and it now has more than 1.000 stores in approximately 63 countries – so it is a very big chain. However Zara has its biggest market in Spain, where they have 364 stores in total. They sell fashion clothes of a fairly good quality to reasonable prices – this also means that they have a broad target group, which we believe to be from kids to adults younger than 50, both men and women. Over the years Zara has expanded their product line heavily, so now they also sell accessories, cosmetics, furniture and perfumes. They have made a whole new store called Zara Home where they
&
Z A R A
Date: 24/10 2008
Table of contents
Introduction p. 3
Zara
Company presentation p. 3
Generic strategies p. 3 & 4
Growth strategies p. 4 & 5
Pest analysis p. 5 & 6
Value chain p. 6 & 7
SWOT analysis p. 7 & 8
Price / quality Grid p. 8
H&M
Company presentation p. 9
Generic strategies p. 9
Growth strategies p. 10
PEST analysis p. 10 & 11
Value chain p. 11 & 12
SWOT analysis p. 12
Zara and H&M
Comparison of the 4 P’s p. 13
Porters 5 forces p. 14
Comparison of the value chain p. 15
Group reflection Enclosed
* Introduction
We have been given an assignment, where we have been divided into groups. In our group we have analyzed two companies, namely Zara and H&M. These two companies are both very big companies within clothing. The fashion business is very tough, and we will explain to you what we believe the two companies does well in this hard business, and why this is good. We have been giving time to solve the assignment in some of our classes with Gitte and Peter, the rest we have made at home. After we have analyzed the two companies we will compare their 4 P’s and their value chain, likewise we also will make a five forces analysis.
Z A R A * Company profile – Zara
Zara is a very big clothing chain from Spain. The chain was founded in 1975 by Mr. Ortega, and it now has more than 1.000 stores in approximately 63 countries – so it is a very big chain. However Zara has its biggest market in Spain, where they have 364 stores in total. They sell fashion clothes of a fairly good quality to reasonable prices – this also means that they have a broad target group, which we believe to be from kids to adults younger than 50, both men and women. Over the years Zara has expanded their product line heavily, so now they also sell accessories, cosmetics, furniture and perfumes. They have made a whole new store called Zara Home where they