Porter Analysis of the Zara Fashion Chain The Zara fashion chain‚ with 546 stores in 30 countries today ?from which 340 are outside Spain- and ?2914‚3 millions of total sales in 2002‚ is undoubtedly the group?s locomotive (Inditex‚ 2003). In 2002 it represented 33% of the group?s total stores‚ accounted for 72% of the group?s total sales and contributed to the holding?s total profits for ?540.4 millions (Inditex FY2002 Results Presentation‚ 2003). Moreover‚ Zara with 75-90 new stores within 2003
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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 used Porter’s five forces model (Porter‚ 1995) to analyse the industry and Zara’s strategic position. I have applied the theory of this model and its determinants to my research of Zara; providing evidence to form strong conclusions. Zara faces competition from
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Introduction Zara is a Spanish fashion and accessories retailers that founded in 1975 by Amancio Ortega and Rosalia Mera (Ledesma‚ 2013). Zara designs‚ manufactures their apparel‚ footwear and accessories for men‚ women and sells up-to-minute “fashionabilty” at low prices throughout Europe‚ US and Asia Pacific (Bilsel‚ 2014) that clearly focused on one particular market ( Nigel Slack‚ Stuart Chambers‚ Robert Johnston‚ Alan Betts‚ 2006) Business Concept The basic business concept of Zara is to maintain
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occur throughout the season. The models for each season (more than 30‚000 of them last year alone) are developed together by the creative departments of the various brands. The sources of inspiration for the 300 designers (of whom 200 work just for Zara) include not just the trends that control the market but the wishes of customers‚ based on
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Zara is a very big clothing chain from Spain. The chain was founded in 1975 by Mr. Ortega‚ and it now has more than 1.000 stores in approximately 63 countries – so it is a very big chain. However Zara has its biggest market in Spain‚ where they have 364 stores in total. They sell fashion clothes of a fairly good quality to reasonable prices – this also means that they have a broad target group‚ which we believe to be from kids to adults younger than 50‚ both men and women. Over the years Zara has
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segmentation and positioning of Zara Segmentation Strategy The segmentation strategy employed by the fashion retailer Zara is based one the typical demographics of the customers like gender‚ age and psychographics. However aside from this the company also targets customer is based on their sense of fashion and style e.g.‚ contemporary‚ trendy‚ classic‚ grunge‚ Latino etc. (Safe‚ 2007) The ethnicity of the brand as well as its target market is blended by Zara in its product offering which match
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I. Statement of the Problem How can The Body Shop compete in the U.S. market and retain its influence in the cosmetics industry despite threats like fiercer competition‚ apparent weaker competitive advantage‚ and the inevitable change in leadership? II. Case Facts and Background The Body Shop has been a fast-growing company in the cosmetics industry. Anita Riddick‚ the founder and managing director of the company had the habit of going against the tide of the industry’s established
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1.0 Description of the Company The Body Shop International PLC (The Body Shop‚TBS)‚ founded by Anita Roddick in UK and opens her very first shop in Brighton in 1976 . TBS is a multinational company which mainly producing natural inspired ethically skin and body care product solely made by 100% organic and against animal testing. TBS headquartered in London‚ UK. The company offers its products under various categories such as cosmetics and beauty‚ bath and body‚ hair and gifts‚ products for men
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ZARA Case Assignment 1. With which international competitor listed in the case is it most useful to compare Inditex’s financial performance? What do comparisons indicate about Inditex’s operating economics? Why? There are 3 key international competitors mentioned in the case: The Gap‚ H&M and Benetton. The Gap‘s production was internationalized with more than 90% of it outsourced outside of the United States. Its stores‚ however‚ were US centric. Therefore‚ The Gap’s strategy was to own
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Analysis and interpretation of ”The Corner Shop” In the last decades globalization has forced every country in the world to define what values and unique characteristics makes the country different and exceptional. The essay “The Corner Shop” is written by the British writer and former journalist at the centre-left liberal newspaper The Guardian Shyama Pereras in 2000‚ and it deals with this exact topic. She puts focus on how globalization has taken a thing considered as a unique specimen of a nation
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