Future Strategies Several future strategies are now suggested for Zara, moving forwards. However, there are weaknesses associated with the internal operations of the company. An International Journal, Vol. Several other competitors within the market have Corporate strategy zara essay negative press, due to the use of suppliers associated with unethical practices.
Buyers demand continuous change, particularly within the fashion industry; therefore, it is necessary to continuously provide new and innovative fashions, on an on-going basis.
Organisations such as Zara have a substantial opportunity, when it comes to changing suppliers, and this enables the company to drive down costs. Building the Research Agenda.
The company, therefore, needs to look towards other opportunities, for example, by changing the design of the product to reduce production costs, or looking at creating efficiencies in the supply chain, by transporting goods to a central warehouse that can then reduce the cots of transportation, overall.
One of the key reasons that Zara has managed to achieve this success is down to its efficient supply chain, which is critical to the current demands of the fashion industry at to meet consumers demand regular updates of products and new and innovative fashion, on a regular basis.
Failure to do so is likely to result in customers turning away from a particular brand, until they renew their product ranges.
In order to do this, a SWOT strengths, weaknesses, opportunities and threats analysis will be undertaken, before going on to look at the value chain and the resource based view which has emerged within the company Porter, Although the company seems to be working with unions, in order to improve the position, the report clearly had an impact on the way in which the company was viewed, with concerns now being shown over the treatment of staff, as well as the treatment of individuals in developing countries who are producing the products, in the first place Balchin Given the higher level of competition that is now being experienced within the fashion industry and when combined with greater legal protection, particularly where the protection of intellectual property is concerned, the individual designers are becoming very protective of their own ideas from the threat that the competition will seek to copy.
Despite this, it is important that the organisation recognises the forces that are impacting on the external market and uses its own internal strengths to ensure that it retains a competitive advantage, thus enabling it to maintain its position within the market, as one of the brand leaders.
A substantial focus needs to be placed on the design team and ensuring that it is continuously developing new products which are able to be produced at a relatively low cost. Furthermore, it has been identified that the ability to bring new products to the market, on a regular basis, encourages greater consumer acceptance and willingness to purchase cutting-edge fashion design.
Substitution across the whole industry is extremely high, as individual consumers can choose alternative providers for their fashion needs. This will enable the company to retain its position for supplying fast fashion within the high street and continuing to attract customers into the store, on a regular basis.
SWOT Analysis One of the key strengths that Zara has as an organisation is its highly developed supply chain, which enables it to get new products to the market, at a very rapid rate.
This has made the market, in general, much more competitive and has encouraged all organisations within the industry to look towards reducing costs and attracting a broader customer base. One of the key ways in which Zara has achieved a competitive advantage in the market is to bring the lead-time of new products down from approximately six months to just two months, which means customers are able to obtain the very best fashion designs at high street prices.
The other threats are the larger organisations and those that are able to reduce their prices below those which Zara can achieve. This is a strong strategy and needs to be developed, as it offers substantial opportunities to gather greater customer support, on a regular basis Mittal, Corporate Strategy – Zara The core concept of Zara's business model is they sell "medium quality fashion clothing at affordable prices", and vertical integration and quick-response is key to Zara's business model.
This paper concerns with the corporate strategy of Zara. Five performance objectives of the company such as quality, speed, dependability, flexibility and cost. Corporate Strategy – Zara The core concept of Zara 's business model is they sell "medium quality fashion clothing at affordable prices", and vertical integration and quick-response is key to Zara 's business model.
Free Essay: Identify the corporate strategy of the clothing retailer ZARA and discuss how the five operations performance objectives support Zara’s corporate.
Discussion QuestionsWhat type of generic business strategy is Zara pursuing?Zara has a low price strategy because they can use a. Read this essay on Identify the Corporate Strategy of the Clothing Retailer Zara.
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