Albert Sedaghatpour Individual Case Analysis-Zara 7/24/09 Introduction Zara is the flagship chain store of Inditex Group owned by Spanish tycoon Amancio Ortega. The group is located in Spain‚ where the first Zara store was opened. Zara has opposed the industry-wide trend towards turning fast fashion production to low-cost countries. Possibly its most atypical strategy is its policy of zero advertising; the firm opted to invest a portion of revenues in opening new stores instead. At the end of 2001
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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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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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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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Zara Case Analysis Zara’s Marketing Strategy • Produce a product that can adjust and fit multiple trends and can adapt quickly to new style. • Pride itself on its location (usually on the best street in big cities) as opposed to spending money on public advertisements. • Target a youthful and vibrant culture. • Have current and efficient technology in their stores. Target Market • Young‚ fashion- conscious city dwellers. • Rapidly changing style that needed to cater to people who were not
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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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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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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 Zara’s performance in the EU. Zara is the largest and most internationalized of Inditex (Industria de Diseno Textil) chain based on Spain. Zara had built up their business in the Spanish market by 1990‚ and started to expand their business into global market. At the same time‚ according to the case‚ they started to make major investments in manufacturing logistics and IT‚ including establishment of a just-in-time manufacturing system‚ a 130‚000-square-meter warehouse close
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What are the Key success factors of Zara? “The ability to respond to customer requirements on a timely basis has always been a fundamental element of the marketing concept.” Martin Christopher et.al. Hence‚ it is important being proactive in a market such as the fast-fashion industry which Zara is operating in‚ time is always a crucial factor. The fast-fashion market‚ amongst other things‚ is characterized by short lifecycles‚ high volatility‚ low predictability‚ and high-impulse purchases. Therefore
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