6.0 STRATEGIC ANALYSIS & RECOMMENDATION FOR ZARA 6.1 PORTER 5 FORCES ANALYSIS 1. Barriers to entry: HIGH a. High fixed cost business requires economics of scale for sustained profitability b. High Selling & Administration Expenses which includes advertising‚ in-store promotions‚ etc.; up to 3.5% of its revenue‚ even though for Zara‚ the company is famous for spending minimum level of advertisements and commercials. However‚ recently the company announced that it invested €450 million in
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Summary E-business Background Zara‚ part of Spanish giant Inditex Group‚ provides clothing products to customers demanding fast fashion that looks like high fashion at lower prices. It has been considered as the most remarkable fast fashion company of the 21st century. In order to understand and analyze the dynamics of the sector and the current state of Zara‚ Porter’s Five Forces and SWOT analysis will be used. E-Marketing The key elements of Zara’s e-marketing strategy include social media‚ viral
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Zara Case Study Main Problems Zara need to adapt their strategy to ensure future stability in meeting the demands of a larger customer base. The problems that they need to address are as follows; Rapid Organic growth outside of Spain – Zara have shifted focus into expanding overseas‚ specifically the Asia region. According to Exhibit 8‚ 120 new Zara stores were opened outside of Spain in 2010. Despite the current centralized distribution model working well and at below capacity‚ continuous rapid
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Case Study: Zara-Fast Fashion Case Summary: Inditex is the parent company of six different apparel retailing chains that includes Massimo Dutti‚ Pull and Bear‚ Bershka‚ Stradivarius‚ Oysho‚ and‚ most importantly‚ Zara. Zara has historically been the most profitable of the chains‚ operating 282 stores in 32 countries at the end of 2001 (Ghemawat & Nueno‚ 2006). The other five chains that are operated by Inditex have not matched the growth capabilities or revenue of Zara. Zara’s apparel offers
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SPANISH FASHION BRAND ZARA Carmen Lopez Ying Fan Brunel Business School Journal of Fashion Marketing and Management (2009)‚ 13:2‚ 279-296 INTRODUCTION Zara is one of the world’s most successful fashion retailers operating in 59 countries. However‚ there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an
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VS. H&M vs. Zara Comparing Marketing Strategies By: Heather Lynn‚ Shannon Bennett‚ Harriet Joines Table of Contents Introduction Zara History Performance Financials Recent Expansions Threats and Opportunities Current Marketing Strategy H&M History Performance Financials Recent Expansions Threats and Opportunities Current Marketing Strategy Our Marketing Plan Marketing Objectives SWOT Analysis Marketing Mix Competitors Summary Works Cited 3 4 4 5 5 6 6 7 7 7 10 10 11 12 12 13 13 15 15 17 17
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merchandising system is essential to the success of any retail business. I intend to focus this merchandising report on Zara‚ a ladies fashion retailer and HMV‚ an entertainment megastore. These two companies have specific buying and merchandising strategies‚ which are tailored to the needs of their products. This report will explore the similarities and differences within each company ’s strategies‚ and identify factors that determine them. Range Selection and Planning When selecting merchandise it needs
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evolving to deliver customers satisfaction. Zara‚ the most profitable brand of Spain clothing retail group Inditex‚ has leveraged its unique strategy to achieve success and will be expected to maintain a sustainable growth in the fashion industry. Zara’s core competencies can be divided into four areas: process development‚ distribution‚ marketing and integrated business structure (referred to Appendix 1). Zara’s unique process development allowed Zara to produce in a shorter cycle time and more
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ZARA-Internationalization Analysis When it comes to internationalization strategies‚ ZARA is the perfect case to look at. By putting in practice a set of different strategies‚ ZARA has accomplished great positioning worldwide and is one of the most recognized brands in the apparel market. Listed below are the main internationalization strategies ZARA has used to become one of the leading clothing brands in the world. Operating Filial When ZARA first started opening stores outside of Spain
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3.1 HISTORY and BACKGROUND ZARA is the flagship chain store for the Spanish Inditex Group owned by Amancio Ortega‚ who also brands such as Massimo Dutti and Bershka. It was first open in 1975 in La Coruna‚ Galicia‚ Spain. Originally a lingerie store‚ then the product range expanded to incorporate women’s fashion‚ menswear and children’s clothes (5). The international adventure began in 1988‚ opened its first foreign store in Oporto‚ Portugal. The market growth remained mysterious and it kept growing
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