The paper "Zara Company Analysis" is a perfect example of a business case study. 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 a 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 Zara’ s products are manufactured inside Spain, 26% are manufactured in European markets, while the 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 to the success of Zara. MACRO LEVEL ANALYSIS2.1 PESTEL Analysis The competitive marketing environment continuously changes, therefore a composed, detailed and consistent analysis is necessary for best evaluation.
Despite 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 FactorsIn terms of the apparel industry, there are no import restrictions for the 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 will increase the competition strong especially by the companies having low price products.
2.1.2 Economic FactorsThe most recent turndown of 2008-09 has put adverse effects on all aspects of life and has left new challenges to the companies. The unemployment rate increased significantly almost throughout the world.
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