Critical Analysis of Zara as a Fashion Store - Case Study Example

However, interest is in the competitive forces and strategies put in play by zara as a member of Inditex to ensure a sense of decorum in its operation.... This report approaches the analysis by applying the Porter's Five Forces model to supplement a detailed critical analysis of the competitive forces and strategic issues that shape Zara's operation.... Founded by Amancio Ortea Gaoa, whenever a person talks about Spanish fashion, the name of zara comes up almost immediately, as a retail clothing company....

In this case, an analysis of the organizations 2011 financial statements revealed an increased profitability margin by 12% as well as a sales increase of 10%.... Further, Inditex expanded its store's outlets by opening an additional 483 stores.... … The paper 'Zara Chic and Fast fashion - Strategic Issues" is a perfect example of a business case study.... nbsp;Zara Company is a global cloth fashion designer with a mission of providing trendy and affordable wears for all society members' men, women and children alike....

These aspects are in particular categories of issues so as to facilitate a detailed understanding of zara's position in the global internet marketing environment.... Zara's Internet Marketing The company has the department of zara Online-Shops which provides a moderate choice of fashion for all of its customer categories.... With regards to the fashion and clothing industry, the paper also includes an analysis of the competitive issues and strategic issues that Zara uses to enhance its performance, customer satisfaction, public respect and earn appreciable returns....

Some of zara's success factors include effective information gathering, designs made on customer demand, excellent manufacturing and logistics, limited production runs, adoption of information technology, vertical integration, and inexpensive products.... Some of zara's success factors include effective information gathering, designs made on customer demand, excellent manufacturing and logistics, limited production runs, adoption of information technology, vertical integration, and inexpensive products....

The company's key success factors are discussed below;The strength of zara's supply chain managementAccording to (Bonin, 2002 )an effective supply chain management should integrate all operations of a company concerned with bidirectional flow of materials, finance, and information thus providing organized, managed, and coherent processes that provide end to end management and control.... The company was founded in 1975 and has grown to become a superheated performer in the soft retail fashion market recently....