Zara; Case study

Zara; Case study

Zara; Case study

Case introduction

The case pertains to Zara's manufacturing of clothing and sustaining the competitive advantage. Zara has become the best flagship brand in the clothing industry is Spain. Through it viable operation management tactics, as well as, well-integrated and efficient supply chain management it has become the affordable clothing brand like no other. The company uses a breakthrough strategy to build a complete canvas of services serving customers the best possible way. The Company had had enormous success in competing with the world renowned brands. It has created a unique position in the minds of the consumer that leads to sustain sales, as well as, result in higher brand loyalty and customer retention rate.

The case study presents details of the management and operation of Zara with complete description and analysis. The case presents several facets of its management that lead to a better management. The case focuses upon strategic planning and management using several management tools to excel in the market on a quite sustainable basis.

Case analysis

External environment

The external environment analysis pertains to find out the feasibility of the environment around the firm. The assessment environment assessment is the most fundamental step before any company initiates a business. In case of Zara, one of the most successful divisions of global clothing and fashion industry, the environmental analysis is given below. These analyses encompass of two major components, that is, PESTEL analysis, as well as, Porter's five forces analysis. These analyses assess the current approach of strategic management for the organization, as well as, check the feasibility of the environment in this regard. Moreover, external analyses are the founding step for assessing the environmental feasibility, as well as, determining the course for the future.

PESTEL analysis

The PESTEL analysis encompass of a very important and fundamental strategic initiate. They attempt to look into several forces, as well as, assess the direction of these forces with regard to the impact of the business. The analysis for Zara's is given below;

Political forces

The government has been unable to stop cater to the economic and social crisis emerged by the recession. The political environment of Spain is not so very feasible and the government often intervenes in the business operations for no fundamental reasons as such. The public and state administration system is in huge crisis leading to disruptions and delays in business operations, as well as, logistics.

Economic forces

The economy of Spain is not really strong. The country is undergoing severe debt crisis that cause enormous backlog in the profitability of the firms, as well as, escalating their taxation burden. Moreover, there is a crisis for resources going on. Resources such as energy, fuel and other necessities for businesses are expensive and scarce. The country is at the verge of economic crisis whereas the inflation and interest rates are mounting giving an even difficult time to the businesses.

Social forces

The social landscape for business is also not very ...