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ZARA: BRAND STRATEGY ANALYSIS

NEW PREZI
by

marina ayad

on 15 August 2014

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Transcript of ZARA: BRAND STRATEGY ANALYSIS

ZARA: BUSINESS STRATEGY ANALYSIS
VISION & MISSION
ZARA's mission statement:
“ZARA is committed to satisfying the desires of our customers. As a result we pledge to continuously innovate our business to improve your experience. We promise to provide new designs made from quality materials that are affordable”.

“Through ZARA’s business model, we aim to contribute to the sustainable development of society and that of the environment with which we interacts.”
LONG-TERM GOALS

Sustaining competitive advantage as "fast fashion".
Using incremental innovative strategy by utilizing information technology. Example: RFID tags

Invest more in information technology and mobile technology
In order to keep up with economy since its quickly improving due to technological improvements: Phone apps improving lifestyle in first world-countries.
Recommendation & Conclusion
NATURE OF THE FASHION INDUSTRY
"Fashion trends" emerged during the Middle Ages
First development in Europe and America
Fashion became industry during Industrial Revolution to mid- 20th century: Rise of capitalism and new technologies
Continues to be hypercompetitive
Fashion capitals: Paris, New York, London and Milan
Constant fluctuation in entrants and exits of brands
Global-billion dollar industry
Media plays a big role in determining the nature of the industry
6) Corporate Strategy
Backward Vertical Integration

Forward Vertical Integration

Horizontal Integration

Globalization

FINANCIAL STRATEGIES
1. Increase and maintain sales, which results in increased revenues

2. Cost containment

3. Increase profits through cost management and tax savings strategy

4. Report Dividend to shareholders

Eight Strategic Objectives
Supply chain integration
Manufacturing responsible products
Responsible use of water in the supply chain
Efficient use of resources throughout the business model
Protection of biodiversity
Ongoing development of team's motivation
Strengthening customer service
Improving community welfare
ZARA BRAND
Global apparel brand and retail chain
Founded by the Inditex Group in 1975
The Inditex Group: Spanish-based and fastest and largest growing retailer. Owns eighth other apparel retail chains
ZARA's original name was "Zorba"
1975: First ZARA shop opened
1988-2000's: Expanded quickly into Europe and US Markets
Total of 2,692 ZARA stores worldwide
2011: Launched online shops in the US and Asia
First ZARA shop opened in La Coruna, Spain
MISSION ANALYSIS
ZARA’s mission statement directly and strongly states their purpose

Easy for their employees to follow and align the company’s objective.

It states clearly what employees need to do and how to do it, in order to achieve those objectives.

Provides reflection on future growth strategies
CURRENT BUSINESS STRATEGIES
1) Differentiation strategy: Imitate "luxury" designs using creative team

2) Zero-Advertising Strategy

3) Merchandise and retail strategy
4) Cost Leadership Strategy: Affordable price
5) Incremental Implementation Strategy: Information Technology
Started in 2013 and complete roll-out in all ZARA stores by 2016
International Expansion
Expansion to Asia
CHINA
40% of Chinese wear the same clothing for work & social events
50% of Chinese shoppers are between the ages of 18-25
Associate foreign brand and higher price with higher quality
INDIA
74% of Indian consumers always shop with their families
Full transcript