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Zare

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Submitted By Yellowone
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Introduction
Nowadays, there are a variety of businesses and business strategies; some of them survive among the intense competition, some of them bow out of their respective industries. In order to compete, the business has to find the best ways to adapt in their industry. For example, Porter’s model and the five forces help gage how businesses should adapt. These forces affect the value chain and the generic strategies that help build the framework that can help the businesses know their position and their competitors’ position to make a strategic plan for the business. ZARA is the world largest clothing retailer operating in 86 countries ("INDITEX Group - Zara", n.d.). ZARA was founded by Amancio Ortega in 1975 ("ZARA - Spanish Fashion's First International Company | don Quijote", n.d.)
ZARA had their first store in La Coruña, Spain, which is now the currentmain headquarter.
The success of ZARA is a very interesting story so in this paper the discussion will be over ZARA’s position and its competitors’ position by applying Porter’s Five Forces. Another focus will be the generic strategy and value chain.

Lasitaporn Kraikruan
Porter’s Five Forces Porter’s Five Forces are tools that can help a business understand their business position, current competitive position, and its profitability level by considering the tension of 5 forces: Bargaining of suppliers, bargaining of buyers, threat of new entrants, threat of substitute products or services, rivalry among existing competitors. It also implies whether an industry is attractive or unattractive. Porter’s Five Forces in ZARA are the following:
Bargaining power of suppliers: The power of suppliers can drive the price up of raw materials, if there are few suppliers in the market. Low availability to access materials and a high switching cost to another supplier can also drive the

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