Zara Strategic Plan

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Zara Strategic Plan


Introduction and Key Issues3

Vision, Mission and Corporate Objectives4

Situational Analysis5

Environmental Analysis5








Industry Analysis8

Competitive Forces8

Key factors of Success10

Internal Analysis11

Brief Summary of Current Situation Analysis12

SWOT Analysis12





Strategic Options and Choice14

Ansoff Matrix14

Implementation Issues15

Decision Making15

Resistance to Change16




Ansof Matrix18


Zara Strategic Plan

Introduction and Key Issues

Zara is a very renowned name in the fashion industry. It has a unique strategy of running the business that has made it so successful. It is a technology based company that has broken all the rules in the fashion industry and is being run in his own unique and competitive style. The other industry players typically rely on outsourcing, however; Zara has been able to provide quality products and services with the help of in house production as it is a vertically integrated company.

The Company is undergoing relentless expansion, and the firm tripled its size between the periods of 1996 to 2000 and skyrocketed to $13.6 billion in 2007. The expansion of the company is quite evident as it is a major industry player in terms of expansion. It efficient business operation is leading to world wide popularity of the business.

However, the company also faces certain issues. In a retail store, you cannot keep inventory for a very long period as it creates severe issues for the company. The products company sell are seasonal, hence the company has to be very careful about the extent of inventory held in the company. Hence, the company sometimes has to bear the loss as the maintenance cost of inventory is very high.

Moreover, the company hires labor on the basis of contract which also creates issues for the company as the company has to hire labor again and again. The basis for hiring labor on contract is to get cheap labor, but hiring labor on a contractual basis is not an easy task to perform as the company has to look for skilled labor again and again which may eventually lead to higher cost.

Vision, Mission and Corporate Objectives

The company focuses on producing high quality goods with minimum possible cost using the latest technology. This focus helps the company to maintain a competitive advantage of the company over other industry players. The corporate objectives of the company areis as follows:

At the Store

1. We save energy.

2. The eco-friendly shop.

3. We produce less waste, and recycle.

4. Our commitment extends to all our staff.

5. An environmentally aware team.

With the Product

1. We use ecological fabrics.

2. Organic cotton.

3. We manufacture PVC-free footwear.

The company's objectives ensure that the company reduces its cost of doing business and makes sure that it carries out business according to the company's objectives. The objectives mentioned above clearly show how the company is able to reduce cost and how it makes sure that the company is different from the others in the industry. People who are related to the business is ensuring that they do not work in a way that does not complement the vision and mission of the company.

The mission of the company is to contribute towards the sustainable development of the ...
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