Zara Company Analysis - Case Study Example

xxxxx No. 12345 ZARA CASE (COMPANY ANALYSIS REPORT) ABC Xxxxx xxxx College Department of XXXX XXXX 29 April, (Total words: 4397) EXECUTIVE SUMMARY This report is basically a case study of Zara retailer, a Spanish based company, one of leading company in retail of apparel and fashion. The macro level analysis indicates that company is facing several moderate to high level challenges. In terms of its global strategy, socio-cultural, legal, and environmental factors could be the major areas of concerns for it. Porter’s Five Force analysis emphasizes that market trends of apparel and fashion industry are comparable to certain other industries and going to be more challenging in near future. The report critically explains the supply chain research as one of the strongest point of Zara; because it’s flexible structure entertains the primary activities to be executed smoothly. Primary supporting activities like human resource management, procurement, and research and development departments play a key role in formulating business and corporate level strategies. This case study highlights that Zara’s success is based on its low cost and product differentiation strategy. It further suggests that hybrid strategy could be more effectual for the company as it reduces the production cost of high quality products. The report also explains the two sad incidents which took place in recent years and have left a negative mark on the reputation of Zara. At the end of the case study, few suggestions are briefly presented for the further growth or expansion of the company. The reports also elaborates few techniques i.e. how to implement the internationalization strategy of Zara. In the context of Zara’s global expansion, few steps of corporate level strategy are discussed. By adopting these techniques, Zara can make maximize its speedy growth with respect to different regions. Table of Contents Contents Page No EXECUTIVE SUMMARY 02 1. INTRODUCTION 05 Question – 1: MACRO LEVEL ANALYSIS 06 2.1 PESTEL Analysis 06 2.1.1 Political Factors 06 2.1.2 Economic Factors 06 2.1.3 Social Factors 07 2.1.4 Technological Factors 08 2.1.5 Environmental Factors 08 2.1.6 Legal Factors 08 2.2 Porters Five Forces Analysis 08 2.2.1 Bargaining Power of Suppliers: Moderate 09 2.2.2 Bargaining Power of Consumers: Moderate 09 2.2.3 Competition among Existing Rivals: High 09 2.2.4 Threat of New Entrants: Low 10 2.2.5 Threat of Substitutes: Low 10 Question – 2: ZARA VALUE CHAIN 11 3.1 Primary Activities 11 3.1.1 Design 11 3.1.2 Production 12 3.1.3 Logistics 12 3.1.4 Marketing 12 3.1.5 Store Operations 12 3.2 Supporting Activities 12 3.2.1 Company infrastructure 12 3.2.2 Human Resource Management 13 3.2.3 Technology / Research and Development 13 3.2.4 Procurement 14 3.2.5 Cost Factor 14 Question – 3: ANALYSIS OF PR CRISIS 15 4.1 Sweatshops 15 4.2 Shop-staff Abused 16 Question – 4: STRATEGIC ANALYSIS 17 5.1 Zara Business Strategies 17 5.1.1 Low Cost Strategy 17 5.1.2 Product Differentiation Strategy 18 5.2 Zara Corporate Strategy 18 5.2.1 Market Growth 18 5.2.2 Diversification 19 5.2.3 Vertical Integration 19 5.2.4 Product and Market Development 19 5.3 Recommendations for Future Strategies 20 5.3.1 Hybrid Strategy 20 5.3.2 Growth Strategy 20 5.3.3 Online Retailing 21 5.4 Techniques to Implement Recommended 21 Strategies 5.4.1 Owned Subsidiary 21 5.4.2 Joint Venture 22 5.4.3 Franchising 22 CONCLUSION 23 BIBLIOGRAPHY 24 1. INTRODUCTION Zara is one of the leading apparel and fashion retail companies which is based at Artexio, Galicia in Spain. It was established in 1975 by Amancio Ortega and Roselia Mera. The company is characterized by its massive infrastructure (almost 1750 stores in more than 90 countries) and flexible internal environment. Zara is beautifully decorated with vertical integration system within the organization which is helpful in designing, manufacturing, transportation, and distribution of the products to the markets. The system has enabled the company to be less dependent on suppliers or external agencies. Almost 50% of the Zara’s products are manufactured inside the Spain, 26% are manufactured in European markets, while rest of the products are made from Asian countries. This report is a case study of Zara retailer and numbers of aspects have been discussed in this report. The main objective of this paper is to critically evaluate those strategies which have contributed a lot in the success of Zara. Question – 1 MACRO LEVEL ANALYSIS 2.1 PESTEL Analysis The competitive marketing environment continuously changes, therefore a composed, detailed and consistent analysis is necessary for best evaluation. Despite of the fact that PEST analysis is used on the basis of previous data, interestingly it can be used as a forecast model (Wilson and Gilligan, 1998).  2.1.1 Political Factors In terms of apparel industry, there are no import restrictions since last 8 to 10 years which is a great provision to all member countries of World Trade Organizations to venture into European apparel markets. On one hand, Zara also enjoys this feasible environment as it imports low cost products from outside the Spain and UK without any restrictions, but at the same time, this could also be a threat for Zara as this easy access to the markets wills increase the competition strong especially by the companies having low price products. 2.1.2 Economic Factors The most recent turndown of 2008-09 has put adverse effects on all aspects of life and has left new challenges to the companies. Unemployment rate increased significantly almost throughout the world. According to the UK’s National Statistics (2009), by the end of first quarter of 2009, the unemployment rate reached ratio was 7.6% which was the highest for the last 30 years. The situation is not promising for apparel industry as unemployed people lose their purchasing power. Similarly, unstable economic conditions make the employed people more cautious, therefore, they tend to decrease their expenditures and start saving the money. GDP rate also dropped in many advanced countries. Even in United States, GDP it dropped to the lowest since 1958 (Financial Times, 2009). This declining GDP is also an indication of declining of customers’ income and ultimately a sign of concern for apparel industry. 2.1.3 Social Factors Social factors are the most influential external factors towards the apparel and fashion because social factors vary from country to country and even they could be different within the same country. Another noteworthy point is that socio-cultural environment changes with respect to time, region, and beliefs. Consequently, the forecast of changes with respect to cultural or social values is very difficult task because consumer behaviour changes or influences by certain external factors like weather, films, or modeling of celebrities etc. (Lowson et al., 2004). These diversified affects are threats for fashion and apparel industries because it is quite tough for companies to respond to cultural norms quickly and adapt with the customers’ tastes. Another social factor which may put its effects on fashion industry is the education level of a society. Education enables the customers to have more knowledge about the latest trends in fashion sector; therefore, their preferences change rapidly. Similarly, in a well-educated society, there are more opportunities for women to work practically in certain field. The office working environment, modes of transport, and general culture let them to change their tastes of clothing frequently. UK could be a good venturing country for Zara as its population is increasing by 0.5% i.e. almost 1000 people per day. It means Zara has good options available to invest further in UK market especially in children clothing segment. 2.1.4 Technological Factors Utilizing of advance technology always proves a synergic effect on a company’s progress because it reduces the costs of time, manufacturing, labor, transportation, and distribution. The use of internet for online purchase is the leading technological trend in many parts of the world. UK population is more oriented to online retailing. Approximately £22.9 billion were spent by UK customers for their online buying (IMRG Cap Gemini, 2009). This sows a good sign for Zara to expand its apparel operations through internet. 2.1.5 Environmental Factors Since human being has set up an organize food culture almost throughout the world, therefore, it is the time now to promote the organic clothing. Marks and Spencer, good competitor of Zara, has successfully introduced a variety of organic clothes in the market. In order to keep the environment protected from adverse effects of fashion and apparel industry, UK government has enforced new environmental regulations because each year, a substantial amount of clothing end up in landfill (BBC, 2009). Environmental regulations are being taken seriously in all cultures; therefore, Inditex also established an Environmental Management System and now seeking for ISO-14001 certification. 2.1.6 Legal Factors The environmental regulations imposed by UK government and other Environmental Protection Agencies (EPAs) are a threat for Zara because the registration of a foreign company has to go through several complex legal procedures. 2.2 Porters Five Forces Analysis Porter’s five forces model is a very good tool which is utilized to explain industry structure and average level of profitability in existing competitive environment (Kenneth & Laudon, 2009). 2.2.1 Bargaining Power of Suppliers: Moderate Generally bargaining power of suppliers is high when either the raw material related to industry is available in limited quantity or when there are limited numbers of suppliers in the market (Karra et al., 2008). In case of apparel and fashion industry, the raw material is provided in the form of cotton and since cotton is limited in European countries, therefore, bargaining power is somewhat high. Similarly due to lack of raw material, less number of suppliers is attached with this industry. High cost of real estate is also a point of concern for fashion and apparel companies. Due to these factors, fashion companies are seeking for outsourcing their production and manufacturing units in Asian countries where raw material is available in much quantity as well as hardworking labour at reasonable cost. 2.2.2 Bargaining Power of Consumers: Moderate When multiple products or options are available, the industry or market is characterized as the high bargaining powers of buyers. In current scenario, there are lots of players in fashion and apparel industry and each one produces hundreds of high brand value products to meet the demands and needs of consumers. This creates a strong competition among the competitors and thus provides lots of choices to the buyers. 2.2.3 Competition among Existing Rivals: High Although Zara has a little edge on its rivals due to its strong vertical integration structure within the organization, even then fashion industry is facing a fierce competition. H&M, Mark and Spencer, and GAP are three other leading companies in this field. One of the biggest factors of this competition is the nature of fashion industry where the life cycle of a product is too short. Declined obstacles to trade and low barriers to new entrants are other factors which make the industry one of the most competitive industries in the business world. 2.2.4 Threat of New Entrants: Low Despite of the fact that there is no official or legal barrier for any new player to enter in apparel or fashion industry, but even then presence of Zara, GAP, H&M, Marks and Spencer, and Benetton is a huge challenge for new entrants. The worldwide networks of these companies give them a competitive advantage against the new comers. Further, the nature of fashion and apparel industry also demands a high capital to start on. 2.2.5 Threat of Substitutes: Low There are no substitutes for clothes as they are being used for centuries. Since fashion is mostly associated with young generation, therefore, youth also have no options in terms of clothes. Therefore, there is no real or logical threat to apparel industry. This low threat of substitutes also contributes toward strong competition. Question – 2 ZARA VALUE CHAIN Zara is a global brand that deals with the fashion and apparel industry by manufacturing and selling of clothes for all age groups of males and females. However, in respect of fashion, the company focuses on young generation only. In order to provide high quality products to its customers, Zara has shown firm determination towards its operational activities. For this, the company has developed a high quality value chain to all of its operational and production units at global scale. Physically, the route of all the products is monitored and evaluated from manufacturing plants to the purchasing points. A well-sorted manufacturing, monitoring, evaluation, and offering of the products to the customers have enabled the company to add value to its operational network across the borders. This value enhances the customers’ satisfaction and later on the loyalty. The value chain of a company mainly deals with primary production and support activities. These segments of value chain have a major contribution towards the capabilities, competence, and effectiveness of the company (Porter, 1996). 3.1 Primary Activities 3.1.1 Design Zara’s operational campaign starts from design. It rejects all traditional ideas of designing with respect to seasons, rather it believes on current collection of designs that meets the demands and preferences of consumers. Zara produces almost 11,000 new designs each year which is much higher than its rivals of producing 2000 to 4000 designs per annum (The Economist, 16th June, 2005). None of the Zara’s design lasts for more than a month. Its designers get the ideas from through film studios, modeling shows, internet, store managers, and from research reports conducted by universities. 3.1.2 Production All the manufacturing plants of Zara are fully equipped with latest technology to reduce the costs as well as ensure the in-time productions. 3.1.3 Logistics Zara added the value to its high profile operations through its state-of-the art logistics support system. Its distributing stores are located in many parts of the world where manufactured products are supplied efficiently from factory to stores. None of products has ever remained in stores for more than three days while most of the apparel products are sold within few hours. 3.1.4 Marketing Although Zara’s competitors spend 3-4% of their income on advertising, Zara merely spends less than 1% for its advertising campaign. It strongly believes in word of mouth. The pricing is adjusted with respect to international markets so that customers are held responsible for transportation expenditures. 3.1.5 Store Operations Stores of Zara are main customer dealing centers. They support the company by portraying its image to the world and second it provides a good basis for research to its managers to formulate new designs and strategies. 3.2 Supporting Activities 3.2.1 Company infrastructure Zara has made a systematic structure within the organization which consists of several departments and each department performs its respective role. Top level management is the decision making authority and responsible for overall running and planning of the company. The planning and finance departments are responsible for timely allocation of necessary funds for the smooth execution of operations. 3.2.2 Human Resource Management HRM is considered as the backbone of any multinational company as it has to ensure the most efficient and cost effective workforce for the company (Jain, 2005). The role of HR Department is quite vast as it not only recruits the competent staff with respect to the nature of jobs but also ensures proper training and grooming of new employees. It receives feedback from different sections like administrative staff, production and marketing staff, finance staff, and distribution and manufacturing staff and by the approval of higher authorities, recruits new employees for these sections. HRM department plays a key role in price setting process as it recommends the establishing of new manufacturing plants to those locations where low cost labour is easily available. 3.2.3 Technology / Research and Development This department has key role in designing of the Zara’s products because it studies and researches the consumer behaviour, their trends, and preferences, and then designing the fashion or apparel products to conform their requirements or desires. The department conducts its research through surveys, questionnaire, direct or online feedback from customers, and collecting the reports from some universities or other data monitoring agencies. The researches include consumers’ preferences, their demographic information, as well as buying potential. This data is then applied to analyze the designing of new products, life cycle of new product, pricing strategy, respond to immediate demands and innovation of new designs. Sometimes customers demand increases for some already existing designs, then the feedback of customers is utilized to reproduce the existing designs as the new one which provides satisfaction to the customers as the new design is as per their specifications. Technology and development department also deal with public fashion shows and films to keep an eye on public demands. 3.2.4 Procurement The procurement department of Zara is responsible for arranging raw material to the company’s manufacturing units. Strategically the department is located at a place from where it can support the manufacturing in such a way that operational activities of the company remain smooth and flexible. In recent years, Zara procurement department has been outsourcing the raw material from Asian countries because here major raw material cotton is available in maximum quantity (Nordas, 2004). 3.2.5 Cost Factor Zara has unique a feature that it adds value to high quality products at moderate cost because it doesn’t spend too much on its advertising campaign. Further its operational excellence also enables it to reduce the prices of products. Question – 3 ANALYSIS OF PR CRISIS During last couple of years, two sad incidents took place in Brazil and Sweden which spoiled the global brand name of Zara. 4.1 Sweatshops According to Antunes (2011), a sad incident took place on 16th August 2011. A Brazilian TV show ‘A Liga’ blamed the Zara for abusing poor Bolivian people. Actually a team of investigation TV visited one of the Zara’s 30 outsourcing plants in Brazil and found that Bolivian people were kept under slave-labor conditions. The Bolivians were working with Galicia i.e. a part of Inditex. It was highlighted that poor Bolivians were not Bolivian immigrants; rather they were smuggled to Brazil. The poor workers were kept in miserable conditions as they were used to live in small apartments where no hot water was available for bath. They were not permitted to leave their apartments without the permission of supervisory staff. Working environment was even more miserable. Lunch was not offered to them and a fire extinguisher was found unserviceable since 1998 (Forbes, August 2013). The Bolivians were kept in groups and the average monthly income of a group was just $569 for daily working of 12-14 hours. A worker told the TV reporters that for a pair of Zara jeans, the group of seven individuals was paid by just $1.14 while the same pair of jeans was sold in US markets by $126. Even some of the earned money was captured by local supervisors. It was really a ridiculous situation for Amancio Ortega, the Inditex’s owner, holding more than $31 billion assets as the 7th richest person of the world by 2011(Forbes & Wikipedia). In response to this incident, Zara dealt the case with stakeholder perspective. Zara’s spokesman condemned the sad incident and criticized the offenders that they had violated the Code of Conduct for External Manufacturers and Workshops of Inditex. He further clarified that although the factory was manufacturing the clothes similar to Zara, however, it was not registered to Zara or Inditex. The company’s representative forced the government that instant measures should be taken to regularize all such unauthorized factories. 4.2 Shop-staff Abused Zara had to face another sad incident on 21st March 2012. This time a Swedish investigation television reported that 25 shop-managers and supervisory staff of Zara were involved in harassing and abusing their under command employees. Zara, having more than 8 stores and 350 employees in Sweden, faced sharp criticism for its lean control over its middle level management. One of the workers who were abused by the Zara management explained to the TV channel as “As soon as you begin to question and assert your rights then you are a troublemaker. Then its just as well to find a new job, otherwise they break you down until you stop yourself” (Company News, March 2012). Although, Zara denied these allegations, even then it got a negative mark throughout the world. In order to counter this situation, its representative not only denied the allegations but also declared that the company will investigate the whole issue and if someone found faulted, strict action would be taken against the accused (Wikipedia). Question - 4 STRATEGIC ANALYSIS 5.1 Zara Business Strategies Generally three business strategies are used by multinational companies i.e. low cost strategy, cost differentiation strategy, and focused strategy. 5.1.1 Low Cost Strategy The capabilities, competence, and value chain of Zara indicate that Zara emphasizes on reducing its cost. It has a well-established vertical integrated structure, flexible production system, and strong supply chain management. The flexible production system helps the company to produce limited number of products in a speedy way. Thus, According to Diaz (2005), the production system reduces the inventory cost. At the same time, it also reduces the customers’ rejection rate to the products which leads to the reduction in overall cost of the products. Further, Zara uses hi-tech technology in its production units like new knitting and weaving technologies and CAD/CAM integrated with cutting robots. The use of latest technology not only decreases the decreases the production time but also reduces the number of working hours of the employees. Both of these factors lead to the reduction of cost as well as ensure much better quality of products. Zara outsources a majority of its raw material from Asian countries (low labor cost areas). Zara spends a very minute amount of its revenue on advertising of its products. This low budget advertising strategy also enables it to follow the low cost leadership strategy (Lopez & Fan, 2009). Another approach to implement this low cost strategy is that Zara keeps a limited number of its apparel and fashion products on its retailing stores. This technique puts extra pressure on customers to purchase the existing products during the same visit because most of the European customers know that Zara products never remain in the shelves for more than three days. 5.1.2 Product Differentiation Strategy By using the differentiation strategy, Zara focuses on the development of innovative products and services against its competitors and thus can enhance its integrity. Along with low cost products, Zara also offers a huge variety of unique designs and products. It launches almost 11,000 designs each year, making itself far ahead of its competitors which introduce 2000 to 4000 designs in a year. Its innovative products take just three week for sale from the concept of its design (The Economist, 2005). High quality of the products and their in-time release makes the Zara a distinguished firm in the opinion of customers. Zara’s product differentiation strategy is based on the recommendations of Technology/Research and Development Department. This department collects the data regarding different aspects of consumer behaviour and then evaluates the existing and future trends of apparel and fashion industry. Zara then introduces new designs and products in the guidelines of its reports. 5.2 Zara Corporate Strategy There are factors which are the primary drivers of Zara’s corporate strategy. These factors include globalization of economies, declining of trade barriers, and advancements in the field of information technology (Lopez and Ying 2009). 5.2.1 Market Growth Zara has successfully ventured into global markets and thus expanded its operations across the borders. Right now the company is operating more than 1750 retail stores in almost 90 countries. According to Inditex Group, all the stores are running well and generating substantial amount of revenue to the company, proving the successful growth strategy of Zara. The expansion strategy not only minimized the risks which the company could face at domestic level, but it also added a value to its global brands. 5.2.2 Diversification At corporate level, Zara has started to diversify its product portfolio. In recent years, the company has launched a shoes range, cosmetics range, and other accessories range. Zara used a mixed model strategy in diversification of its portfolio. Zara intends to enhance its portfolio with the online retailing. The online retailing will enable the company to develop its diversification of portfolio further. By using diversification strategy, Zara has improved its relationships with its customers as it satisfied them by providing the products of their need. 5.2.3 Vertical Integration One of the greatest competitive advantages of Zara apparel is that it has a vertically integrated system due to which 60% of its products are made without depending on any external agency. The vertical integration makes the company more flexible that it responds to consumer preferences more quickly than its competitors (Barletta & Hartman, 2006). Consequently it results in customers’ satisfaction which later on improves their loyalty. 5.2.4 Product and Market Developments Zara introduces approximately 11,000 products each year. Its products take less than four weeks to place in the stores from their designing, manufacturing, and transportation. Further Zara doesn’t invest heavily to promote its products rather it concentrates on word of mouth advertising. In terms of market development, Zara initially targets only those communities that already have some exposure towards its products. 5.3 Recommendations for Future Strategies 5.3.1 Hybrid Strategy Zara business strategies based on two factors i.e. low cost products plus high quality products as per customers’ demand. In terms of taking both the strategies along, in current scenario, the best option for Zara is the hybrid strategy that will enable the company to differentiate its services and products. The strategy is executed efficiently due to the presence of effective supply chain system in the company. The supply chain maintains equilibrium between the production of high quality products and the reducing cost in the organization but also helps the company to improve its flexibility to offer its products to the customer much early than the rivals. The strategy will also facilitate the company to charge different prices for different products depending upon their quality, manufacturing cost, and the prices set by competitors. Since, hybrid strategy is somewhat the combination of low cost and product differentiation strategies; therefore, it is recommended that Zara must keep on following the hybrid strategy in future as well. 5.3.2 Growth Strategy Although European markets are the Zara’s major areas of operations, however, primarily the company concentrates on few bigger countries. Along with several European countries, Zara has very little involvement in Asian and Middle East markets. Zara must emphasize on its further growth with respect to new emerging markets as listed in the table below. Region Countries/Markets Europe Switzerland, Poland, Netherland, Luxembourg, and Austria Asia China, japan, Korea, India, Singapore, and Malaysia Middle East is one of the richest regions of the world, but since it is not very trendy, therefore, Zara should venture into this market through traditional apparel pre-season manufacturing to minimize the expenditures. 5.3.3 Online Retailing Zara is required to emphasize on web based retailing because it is speedier, convenient, and increases the target markets. Zara can establish a separate online portal for each country where customers from respective country can contact the company for its products. Online retailing will enable the company to enhance its target markets and several experiments can be done through it. Further it will also reduce the cost in terms of logistics and transportation. Dependability on physical infrastructure and excessive manpower will also be minimized a lot. 5.4 Techniques to Implement Recommended Strategies Zara can use different techniques to implement above recommended strategies. Few of them are discussed below. 5.4.1 Owned Subsidiary It is the most expensive technique for the implementation of growth strategy. It costs high if it fails, therefore, Zara should use this strategy only in European and American countries because these countries have less commercial risks as well as they have greater potential to grow (Lopez and Ying 2009). 5.4.2 Joint Venture This technique is utilized in those foreign markets where either the competition is so strong or numbers of issues exist, therefore, to reduce those issues this technique is used to combine the capabilities and competencies of the parent company with the technical or social expertise of the host Country Company. In order to venture into Middle East, Zara should adopt joint venture technique because there are lots of legal, geographical, and cultural factors which will create hurdles against its internationalization strategy. 5.4.3 Franchising Zara can use franchising technique for venturing into Israel or India because geographically both the countries are located at a great distance. CONCLUSION Zara is one of the leading fashion and apparel retail of the world which is building up continuously in many parts of the world. The company has shown tremendous growth over the years. Company’s internal analysis depicts a well-established vertical integration structure which enables it less dependent to external agencies. Along with vertical integration, instant response to customer preferences, low cost leadership, and strong supply chain are its competitive advantages over its rivals. Zara also has an upper hand on other leading companies of fashion and apparel as it produces more than 11,000 products with greater speed. In the field of information technology, Zara has to focus a lot because global business environment is continuously changing. In terms of online retailing, Zara is lacking behind its competitors. Since Zara is a market leader in apparel and fashion industry, therefore, lots of unauthorized small companies copy its products. Zara is required to involve local governments to take disciplinary actions against these unauthorized factories because these are the areas where it can gain a negative mark once again. BIBLIOGRAPHY Barletta, T., and Hartman, K. (2006). Zara fast forward workshop, Journal of Textile & Apparel Technology & Management (JTATM); Winter2006, Vol. 5 Issue 1, pN.PAG Company News. (23rd March, 2013). Clothing company, Zara denies abuse of Swedish workers Retrieved on 29 April, 2013 from http://www.scancomark.com/Companies/Closthing-Company-Zara-denies-abuse-of-Swedish-workers.html Diaz, F. C. (2005). An integrative framework for architecting supply chains. Masters Thesis, Boston: MIT, available at: Financial Times (2009). Inditex to open zara store online. available at: Forbes, (17 August, 2011). Zara accused of alleged slave labor in brazil. Retrieved on 29 April 2013 on IMRG Cap Gemini Web-Site (2009). IMRG / capgemini Sales Index: July 2009”, available at: Karra, N., Phillips, N. and Tracey, P. (2008). Building the born global firm: developing entrepreneurial capabilities for international new venture success. Long Range Planning, 41(4): 440-458 Jain, P. (2005). A comparative analysis of strategic (SHRM) issues in an organizational context. Emerald Group Publishing Limited Vol. 54 No.3, pp. 166-179 Kenneth, L., and Jane Laudon, P (2009). Essentials of management information systems. 8th Ed. Upper Saddle River: Prentice Hall. Lopez, C. and Fan, Y. (2009). Internationalization of the Spanish fashion brand Zara, Journal of Fashion Marketing and Management, Vol. 13, No. 2, pp. 279-296 Lowson, R., Christopher, M., and Peck, H. (2004). Creating agile supply chains in the fashion industry. International Journal of Retail & Distribution Management, Vol. 32, No. 8, pp. 367-376 National Statistics (2009). Population change UK population increases by 408,000, available at: Nordas, H.K. (2004). The global textile and clothing industry post the agreement on textiles and clothing, available from . Retrieved on April 2006. Porter, M. E. (1996). What is strategy? Harvard Business Review, November–December, 61-78.The value chain The Economist (2005). The future of fast fashion, available from Wilson, R.M.S., and Gilligan, C. (1998). Strategic Marketing Management, 2nd edition, Butterwoth Heinemann, Oxford Wikipedia. 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