Zara Case Study Analysis
CASE STUDY ANALYSIS: ZARA
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Table of Contents 1. Introduction 3 2. Strategic Issues Underpinning the Buying Decisions at Zara 3 3. Zara’s Product Mix Strategy: Advantages and Disadvantages 6 4. Conclusion 8 REFERENCES 10
1. Introduction
Zara is a successful retail clothing company that expanded over the years due to its elaborate supply chain and excellent product mix strategy. The company established in 1963 opened its first store in 1975, in La Coruna. By 1989, the company had ninety-eight retail shops and production facilitates distributed around Spain. This followed international expansion where the company opened several other stores around the world. The company has a huge expansion around the world, making it the largest and most lucrative Unit of Inditex SA, manufacturer and distributor of Spanish clothes with over one thousand three hundred stores located around Europe, Asia, America, the Middle East and Pacific region. This brief overview highlights the strategic issues underpinning Zara’s buying decisions and the company’s product mix strategy.
2. Strategic Issues Underpinning the Buying Decisions at Zara
Buying decisions are the series of options a consumer makes before purchasing a product (Stahlberg 2012, p.3). The customer chooses where to buy the product, the model, the brand, when to buy, amount to spend and what payment method to use. The company or marketers try to influence consumers’ buying decisions through supply of sufficient information (Stahlberg 2012, p.3). Zara develops a production cycle that is distinct from fashion sectors principles. The company’s design team operate throughout the season studying every current trend in the market. The design team do so through assessing how clubbers dress, and clothes worn in major television series. These strategies help the company in producing stream of new products that keeps customers flocking in the company to see and purchase the
Name
Institution
Professor
Course
Date
Table of Contents 1. Introduction 3 2. Strategic Issues Underpinning the Buying Decisions at Zara 3 3. Zara’s Product Mix Strategy: Advantages and Disadvantages 6 4. Conclusion 8 REFERENCES 10
1. Introduction
Zara is a successful retail clothing company that expanded over the years due to its elaborate supply chain and excellent product mix strategy. The company established in 1963 opened its first store in 1975, in La Coruna. By 1989, the company had ninety-eight retail shops and production facilitates distributed around Spain. This followed international expansion where the company opened several other stores around the world. The company has a huge expansion around the world, making it the largest and most lucrative Unit of Inditex SA, manufacturer and distributor of Spanish clothes with over one thousand three hundred stores located around Europe, Asia, America, the Middle East and Pacific region. This brief overview highlights the strategic issues underpinning Zara’s buying decisions and the company’s product mix strategy.
2. Strategic Issues Underpinning the Buying Decisions at Zara
Buying decisions are the series of options a consumer makes before purchasing a product (Stahlberg 2012, p.3). The customer chooses where to buy the product, the model, the brand, when to buy, amount to spend and what payment method to use. The company or marketers try to influence consumers’ buying decisions through supply of sufficient information (Stahlberg 2012, p.3). Zara develops a production cycle that is distinct from fashion sectors principles. The company’s design team operate throughout the season studying every current trend in the market. The design team do so through assessing how clubbers dress, and clothes worn in major television series. These strategies help the company in producing stream of new products that keeps customers flocking in the company to see and purchase the
References: Ferrell, O 2008. Marketing strategy. New York: Cengage Learning. Hugos, M 2011. Essentials of supply chain management. London: John Wiley & Sons. Stahlberg, M 2012. Shopper marketing: how to increase purchase decisions at the point of sale. Texas: Kogan Page Publishers, Apr 28, 2012.