STRATEGIC MANAGEMENT PAPER ZARA Created By: Anggita Sulisetiasih 1006718706 Kenji Wibawa Junardy 1006718990 Patricia M. A. Adam 1006805694 International Undergraduate Program Faculty of Economics University of Indonesia Depok 2013 TABLE OF CONTENTS Chapter 1 4 INTRODUCTION 4 1.1. Company Background 4 1.2. Vision and Mission 4 1.3. Long-term Objectives 5 Chapter 2 6 VISION – MISSION ANALYSIS 6 2.1. Importance (Benefits) of Vision and Mission Statements 6
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completion of production process. Fast fashion has been a means to access international markets with a focus on competitive advantage, traditional manufacturing, supply and retailing practices in fashion. Two leading fast fashion companies are Zara and H&M. Zara has 70% of total sales in Europe and H&M’s main markets are in Germany, France, UK Sweden, The Netherlands, Switzerland, Spain and Norway. At the minor level, national fast fashion companies are also faced with the challenge of expanding internationally
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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
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Topics | Page No | 1. | Why Zara? | 2 | 2.2.12.22.32.4 | OverviewBackgroundBeginningGlobal ExpansionsFinancials | 22222 | 3. | Brand Positioning | 3 | 4.4.14.24.34.4 | PEST AnalysisPoliticalEconomicSocio-CulturalTechnological | 33344 | 5.5.15.25.35.4 | SWOT AnalysisStrengthsWeaknessOpportunitiesThreats | 44556 | 6.6.16.26.3 | Business Strategies5 P’s of MarketingPorter Five Force analysisMaslow’s Hierarchy | 77810 | 7. | Recommendations | 11 | 1. WHY ZARA? “People will stare, make
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conventional wisdom(傳統觀點) shared by many senior managers, stock analysts, and management gurus(領袖、專家). Zara subverts(顛覆) this logic. It produces roughly half of its products in its own factories. It buys 40% of its fabric from another Inditex firm, Comditel (accounting for almost 90% of Comditel's total sales), and it purchases its dyestuff(染料) from yet another Inditex company. So much vertical integration(垂直整合) is clearly out of fashion in the industry; rivals(競爭者) like Gap and H&M, for example, own
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ZARA Word count: 3799 Table of Contents Executive summary 2 Zara background 3 External factors and competitive forces 3 PESTEL 3 Porter’s 5 4 Internal factors 6 Resources and capabilities 6 Manufacturing 8 Logistics 8 Public relations crisis and their effect on peformance 8 Evaluation of strategic options and recommendation 10 References 12 Appendixes 13 Executive summary This project aims to provide an in-depth analysis of external and internal factors affecting
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Introduction The Zara case talks about the Spanish Retail giant Inditex which had grown over a period of 5 years from 1996-2001 with CAGR of ~26% (Exhibit 7:case), mainly riding on the success of its largest retail chain Zara. The main driving forces behind Zara's success were the simple business model (vertically integrated with short cycle times) ensuring high speed and design flexibility. Among all its chains, Zara is the most profitable and internationalized chain with over 500 stores in 30
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distribution, product differentiation vi. Puts a cap on profit potential of an industry e. Power of Buyers vii. Price Sensitivity f. Power of Suppliers viii. Switching cost ix. Threat of forward integration x. Supplier concentration g. Threats to substitutes (complements are the opposite) xi. Refer to products in other industries xii. Create a cap on prices that buyers will pay xiii. Floor on the prices
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9-703-497 REV: DECEMBER 21, 2006 PANKAJ GHEMAWAT JOSÉ LUIS NUENO ZARA: Fast Fashion Fashion is the imitation of a given example and satisfies the demand for social adaptation. . . . The more an article becomes subject to rapid changes of fashion, the greater the demand for cheap products of its kind. — Georg Simmel, “Fashion” (1904) Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and five other apparel retailing chains, continued a trajectory of rapid, profitable growth by
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Zara: the Spanish retailer goes to the top of world fashion’ Case Study 7/31/2015 0 Comments Introduction Zara (Inditex) is one of the successful fast fashion retailers under Inditex Group founded in 1975 owned by Ortega a Spanish businessman who owns 1830 stores in 82 countries and it is a vertically integrated retailer, controlling most of the steps on the supply chain (designs, produces and distributes itself). Pull & Bear, Massimo Dutti, Berksha, Oysho, Zara Home, Stradivarius, Uterque
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