Porter analysis of Zara 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 takes the lion’s share
Premium Inditex Vertical integration Marketing
Mission of Zara 1. Response very quickly to the demands of target customers‚ who were young‚ fashion-conscious city dwellers and their tastes in clothing changed rapidly and hard to predict 2. Take advantage of intelligence and trust the judgment of employees throughout the company instead of relying on a small set of decision makers SWOT Analysis SWOT analysis analyzes current situation of organization and identifies factors that may affect desired future outcomes of the organization
Premium Clothing Marketing SWOT analysis
EXTERNAL As for the B2C buying behaviour‚ many perspectives are included. Firstly‚ take a look at the cultural factors. Buyers of ZARA are influenced by culture‚ subculture and social factors. ZARA collects information about its customers via staff members‚ by different observations and also directly from the buyers. Since ZARA is a centralized brand it focuses on the global trends‚ though it has decided to move towards geocentric orientation and started to adopt local solutions‚ too. It is also
Premium Sociology Maslow's hierarchy of needs White-collar worker
Limitations of the BCG model. The BCG model is criticised for having a number of limitations (Kotler 2003; McDonald 2003): ➢ There are other reasons other than relative market share and market growth that could influence the allocation of resources to a product or SBU: reasons such as the need for strong brand name and product positioning could compel resource allocation to an SBU or product (Drummond & Ensor 2004). ➢ What is more‚ the model rests on net cash consumption or generation as the
Premium Marketing Economics Cash flow
Europe‚ Zara enjoyed an impressive compound annual growth of 26% from 1995 to 2000. Zara was an exceptional in the downturn market and created a standard for apparel industry. Zara’s target customers were fashion- oriented young and middle age women and men‚ who came from middle to upper classes and had a rapidly changing style. To meet the needs and wants of this customer segment‚ Zara built its strengths to enhance its core competitive advantages: Strengths and Weaknesses of Zara‚ and the
Premium Clothing Inditex Marketing
suitable price Preferred customer satisfaction. Future plan to open new branches 3) MAIN concerns and issues faced by the firm in the effort growing their business • Problem to carter market • Seasonal product • Future threat competitors 4) PORTER’S Analysis Element/factors 1 2 THREAT OF NEW COMPETITION A. Strong brand names are important. B. Geographic factors limit competition. C. Customers are loyal to existing
Premium Marketing Strategic management Product management
1. Zara profile Zara is the most internationalized of Inditex’s chains which owned by Spanish tycoon Amancia Ortega. The first Zara store opened in 1975 and there are more than 1‚500 Zara stores around the world until now. It is claimed that Zara needs just two weeks to develop a new product and get it to stores‚ compared with a six-month industry average‚ and launches around 10‚000 new design each year. Zara has resisted the industry –wide trend towards transferring fast fashion production to
Premium New product development Supply chain management Inditex
ZARA By John M. Gallaugher A look inside the innovative techniques of one of the largest fashion retailers 2012 Joshua Crocker MGMT 3030 12/19/2012 ZARA By John M. Gallaugher A look inside the innovative techniques of one of the largest fashion retailers 2012 Joshua Crocker MGMT 3030 12/19/2012 A Goldman analyst once described this fashion retailer as “Armani at moderate prices” and another suggested that fashions were “Banana Republic” while prices were “Old Navy” (Folpe
Premium Fashion Retailing Fast fashion
Zara as being one of the major international clothing retailers stands out with its business and marketing model. Zara is also often one step ahead of the high-fashion ready-to-wear brands by providing similar garments made with less expensive fabric so prices much lower. Zara’s business model is characterized by flexibility‚ which is a production method that fulfils demand in order to manage quick turn-around‚ limited season stock and at a low price. The secret to Zara’s success is that‚ although
Premium Retailing
Zara is a Spanish clothing and accessories retailer‚ founded in 197 by Amancio Ortega. Zara has now became possibly the most innovative retailer in the world. By the end of the year 2011‚ Zara has reached 82 markets globally with a network of 1.830 stores. Zara’s secret of successful fast fashion business model is mostly about their responsive buyer driven supply chain. The customer plays an active role in the business model. Design and production activity begins with customer demand and retail
Premium Strategic management Supply chain Retailing