Zara has thrived by employing a vertical supply chain. This chain has developed a strategy that has led Zara to create a fashion empire. In 2008‚ Zara had over 1520 stores and produced €6‚8 billion in sales. The supply chain is depicted in figure 1. The chain starts at the headquarters were the designers produce nearly 30‚00 different designs per year. Typical competeitors produce about 2000-4000. Zara employs a quick response system (discussed later) in wich informnation about trends‚ store
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Hong Kong Institute of Vocational Education (Lee Wai Lee) Higher Diploma in Sales and Marketing – YEAR 3 Marketing Planning ZARA Course code/Class: 21905F/3D Group members: Chan Oi Yee (3) Chan Wing Sum (4) Cheng Jacqualine Wing Chun (5) Chiu Ka Man (9) Fong Ka Man (13) Leung Hoi Yi (22) Lecturer: Ms Cherry Tsui CONTENT INTRODUCTION EXCECUTIVE SUMMARY SITUATION ANALYSIS (PEST) SITUATION ANALYSIS (SWOT) SITUATION ANALYSIS (5 FORCES) OBJECTIVES (SHORT TERM) OBJECTIVES (LONG TERM) OBJECTIVES
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Challenges Faced by Zara in the United States In the United States‚ fast fashion accounts for only 1% of the $181 billion U.S. apparel market‚ compared to 10% in the EU1. Although they are running 1000 retail stores efficiently‚ only 44 of them are located within the U.S.2. Zara has emerged as a global fast fashion leader as they are able to get up to the instant trends on their shelves within 2 weeks compared to their competition’s 6 weeks to 4 months‚ while still operating on a low-cost model
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of technology‚ people‚ and data to support business requirements. Bossing’s General Merchandise was founded by Ms. Agnes Filomeno last July 3‚ 2001. it is located at 1242 Jacinto St. Extension‚ Guadalupe Nuevo‚ Makati City. The company had been established as Ms. Filomeno bought the store from her friend together with the products to continue the started business under her ownership. Bossing’s General Merchandise is a whole sale and retail store that offers free delivery to its customers. It has
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billion in annual sales with the highest profit margin in the retailing industry. M & S is encountering some difficulties in logistics because it has lengthy logistics procedures forcing the retailer to order 9 months in advance. Competitors like Zara have very fast and efficient logistics with excellent lead time. Nimble competitors are offering low prices as well as achieving many deliveries per year of new fashion items. M&S decided to pursue a new strategy of improving their product appeal
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The main objective of their marketing activities is to react swiftly: Zara is able to design‚ produce and deliver the product to the customer in just one month. The main reason for this is that Zara does not forecast the designed clothing. Fabrics and garments are the only materials to be purchased on the basis of forecasts. Their main strength is to capture real-time information on the shop floor and develop designs on the basis of this information: so-called ‘commercial managers’ conceptualize
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that fit that class of income. According to Buckle.com “By department/class‚ last year our business was about 47 percent guys and 53 percent gals. By offering both guys and gals merchandise we have unique opportunities for merchandising and we gain flexibility in adapting to changing trends in fashion.” The merchandise reflects the age range description as well as price. Buckle products are casual and stylish to young men and women. The prices would be classified as medium to expensive‚ meaning
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Zara International was a retail shop originated in La Coruna‚ Spain in 1975. It was clothing and accessories shop and imitated the latest fashion trends and sold them at a lower cost. It became Zara International after entering Portugal in 1988 and then the United States and France in the 1990s. The distributor for this brand is Inditex and is considered the most successful retail chain in the world. Zara has a business strategy that is very different from the retailers nowadays. If a customer orders
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Price strategy -> low prices‚ high fashion. Physiological prices. Designer -> much attention. Discount -> student discount. ZARA Price ZARA offers fashion at reasonable prices by following the most up to date fashion trends. ZARA has clothes that are fresh of the runway but they sell it for an affordable price. ZARA uses also physiological prices just like H&M. ZARA is more expensive than H&M but the quality of the clothes are also better. They do not use discounts. But when the clothes are old
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Analysis of Issues The company Zara uses resources that are to fully utilize the labor regardless of the process-making which contains harmful substances in the production of goods. The stakeholder however has the power to stop the unethical incidents including making an event for the prevention of harm towards the customers. The company concerns about cost saving and efficiency to be made in Taiwan however could cause harm that endanger the wearer and unethical issues. Customers are warned to
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