that are being applied to the company Zara‚ and analyzes and evaluates the marketing performance of the company. The report will cover the following topics: 1. The production of a concise external marketing audit by using PESTEL and SWOT analysis and Porter’s five forces‚ and the identification of key issues facing the organization arising out of the audit 2. The explanation of the organization’s current segmentation‚ targeting and positioning (STP) strategies 3. The recommendation of an effective
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ZARA: Fast Fashion The Spanish retail chain Zara has unique supply chain management practices that enable it to gain a competitive advantage over other fashion retailers in the industry. Zara’s rapid response time enables the firm to quickly respond to changing fashions while deliberately under producing products. This strategy‚ which is supported by competencies in logistic management‚ design and information systems‚ allows the company to maintain less inventory and higher profit margins and is
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To: Zara Management From: Subject: Zara ’s US Expansion Date: 2001 Background Following is an analysis of Zara ’s current expansion strategy into the US retail market and recommendations on future tactics to ensure a successful expansion. Zara ’s expansion strategy thus far has been quite successful; however‚ with every new store opened‚ its ability to maintain an efficient centralized production system and a strong‚ unique culture will be diminished. Analysis Let us first consider Zara ’s
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different business models. Inditex owned much of the production and most of its stores. Inditex is thus a vertically integrated company. This gave Inditex a competitive advantage‚ which is quick response to the market requirements. On the other hand‚ The Gap and H&M have a different business model. They owned most of the stores‚ but outsourced all the production. And Benetton had a third business model. It invested heavily in the production‚ but licensees ran its stores. To prove Zara has the prospect
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better negotiated agreements with suppliers Highly experienced and capability employees‚ around 113‚000 worldwide Market leader in DRAM ‘92 - ’02 PROBLEM ROOTS Strategy to compete with Chinese competitor ALTERNATIVE SOLUTIONS Cooperative strategy Collaboration with Chinese manufacturer Competitive strategy Product differentiation
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CASE STUDY Zara The case describes how Zara‚ operating out of the Galician port of La Coruña in north-west Spain has managed to become a benchmark for speed and flexibility in the garment industry. The case offers an illustration of a fast-response global supply‚ production and retail network. In 2003 Zara was the only retailer that could deliver garments to its stores worldwide (507 in 33 countries) in just fifteen days after they were designed. It could do that because of its unique systems
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Perspectives Strategy MGT136-1 Provide an analysis of an organisation explaining the relative importance of each of Porter’s Five Forces for the organisation’s strategic position. You should support your arguments with evidence from the company and/or the relevant literature. Zara has been the major pioneer of ‘disposable’ fashion; which makes up over 12% of the UK clothing industry. Zara outperforms its rivals in profitability‚ brand identity‚ and its successful business model. I have
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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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most popular strategies for many firms to leverage brand equity (Monga & John‚ 2010; Tom‚ Kelly & Ravi‚ 2012). Zara as one of the world’s most successful fast fashion brand (FFB) retailers has applied brand extension into its brand development. The purpose of this report is to examine the brand extensions strategy of Zara which include these areas: the marketing objectives of brand extension‚ the relationship between competitive advantage of Zara and the brand extension strategy‚ the model
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Case Analysis 1: Zara IT for Fast Fashion 1.) After analyzing the case Zara: IT for Fast Fashion and reviewing the company’s operational strategies‚ we can identify both positive and negative aspects within the organization. Major contributors to the company’s success include: a fined tuned value chain system; lean manufacturing‚ design and distribution; the ability read target markets and predict market trends. Conversely the most significant issues identified in the case include: (1) Poor IT
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