Case # 4 – Zara Zara is the flagship company of Inditex‚ an international clothing retailer. Zara began its business as a small retail store in Spain founded by Amancio Ortega Gaona in 1975. In the following decades Zara has grown to nearly 450 store location in 29 countries by the year 2000. Zara consistently accounts for more than 80% of Inditex’s net sales as indicated by Figure 1; linking the success of Inditex to the success of the strategies of Zara. Figure 1 Inditex Net Sales by Concept
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Pestle Analysis of Zara SOE11108 Sources of Competitive Advantage Assessment 1 Group Presentation PESTEL – Analysis [pic] Contents 1 Introduction 3 2 Overview 3 3 Business Environment 3 4 Political 4 5 Economic 4 6 Social 5 7 Technological 6 8 Environmental 6 9 Legislative 8 10 Conclusion 8 References 9 Introduction The global apparel market is a consumer-driven industry. Also‚ globalization and new technologies have allowed consumers to have more access to fashion. As a result
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Recommendations The best way for Zara to maintain their sustainable growth is to seek new opportunities in the apparel market. With changing consumer behaviors as a result of globalization‚ and U.S. department stores suffering‚ there are growth options available for specialty retailers like Zara. Zara has the opportunity to be one of the trendiest/low priced retailers that America has seen recently. Zara should most likely develop a second central distribution center in the Americas to decrease
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BIT HuangFei (Tracy) Zara: a Spanish retailer goes to the top of world fashion Answer1: The international expansion of Zara started with the opening of a store in Portugal in 1988. Through establishment in Portugal Zara acquired international market experience and knowledge and realized that it would have to adjust its business model to suit the new international markets. International sales accounted for 69 percent of its total turnover in 2005‚ with Europe being its largest market by far
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hours. Zara produces up to 11‚000 items per year while its competitors produce only 2‚000 items approximately‚ this ability able Zara to replace undesirable goods with the preferred one in short notice. According to the short product life-cycle strategy‚ Zara create the sense of scarcity‚ which lead to the customer’s awareness about purchasing the goods right away after it is launched. The finding shows that Zara shopper visits the chain 17 times a year compared with 3-4 times a year for Zara competitors
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Marketing‚ market segmentation is one of the key marketing strategies to look into. This essay is aimed to explain the concept of market segmentation and its benefits as a substitute to a mass marketing approach. Considering successful market segmentation‚ it is vital to go through three activities called STP process that should be undertaken‚ usually sequentially‚ if segmentation is to be successful (Baines et al.‚ 2011). STP process consists of three steps: segmentation‚ targeting‚ and positioning
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Introduction: Market Segmentation: Market segmentation is the process of dividing the market into parts that are different from one another. It is the identification of potential customers who would buy your products. Different customers have different needs and it is not possible to satisfy these needs by treating all customers in a similar way. Most organisations do not have all the resources to satisfy the needs of all the customers. Therefore‚ it is necessary to identify the similar groups of
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Zara Zara varies in price‚ promotion‚ and positioning from some of its main competitors‚ H&M and Gap. Zara uses very little of its budget on promotion and marketing and relies more on its store windows to advertise its name to the public. Zara also places stores in busy areas and predominantly in more affluent areas in order to attract the most customers who will have the financial resources to purchase clothes from them. Zara’s store windows are designed to capture and entice customers and
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Segmentation‚ targeting and positioning are interrelated activities‚ which are important to achieving a successful marketing mix. Discuss these concepts in theory and give practical example of how they can be applied to one industry of your choice. Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs‚ and then be designed and implemented to target these specific customer segments‚ addressing needs or desires that
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Mary Rose Batoon Fashion Retail Branding and Promotion Professor Dena Strong March 3‚ 2015 Zara 1. What are the Main Challenges in the business model adopted by Zara? Based on weaknesses and threats on Zara SWOT analysis‚ the main challenges they are facing today are the high dependence on European Markets‚ Intense completion in the retail market‚ Rising labor wages‚ especially in Europe‚ and the risk of foreign exchange fluctuations. Others also include the problems faced by management in the organization
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