...,. Assignment Title- Introduction and Situational Analysis Zara Swot Analysis Introduction: Zara was set in Spain, by Amancia Ortega and presently is the second major clothing company in the world. Today, it is probably the world’s best growing garments merchant with over 3,100 stores around the world in over 70 countries. The first Zara featured low priced imitations of famous trends which proved very successful and gave beginning to the Zara of today. Ortega started the business forty-four years ago with the aid of his wife by designing lingerie and gowns in his living room. Ever since, it has grown to a company with ten billion dollars in revenue. From the beginning of the company’s history, Zara’s achievement has been mainly due to speed and location. Zara has two basic product lines that are men and women clothing and also includes children clothing. Zara’s target market is people who fancy quality fabric at reasonable prices. Swot Analysis. Internal Strengths • Production Speed: One of the Zara’s apex strength and reason it has been flourishing in an industry so dynamic and competitive is because of the skill to create an item of garments within as little as only two weeks and get it shipped to its supplies for buyer purchase. Zara’s devise team has the skill to do this because they take a quicker approach at producing clothing things that customers want at the present moment. They discover present popular trends and ask consumers what they want and need instead...
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...------------------------------------------------- ------------------------------------------------- ZARA: FAST – FASHION CUSTOMER SATISFACTION ANALYSIS USING IBM SPSS ------------------------------------------------- ZARA: FAST – FASHION CUSTOMER SATISFACTION ANALYSIS USING IBM SPSS MARKETING MANAGEMENT COMPANY PROJECT BY GROUP 8 ABHISHEK GUPTA BY GROUP 8 ABHISHEK GUPTA ABOUT INDITEX INDITEX is a Spanish multinational clothing company headquartered in Arteixo, Galicia, Spain. It is made up of almost a hundred companies dealing in activities related to textile design, production and distribution. Amancio Ortega, Spain's richest man, and the world's third richest man, is the founder and current largest shareholder. The current chairman of Inditex is Pablo Isla. Inditex operates over 5,500 stores worldwide and owns brands like Massimo Dutti, Bershka, Oysho, Pull and Bear, Zara, and Tempe and also a low cost brand Lefties. The majority of stores are corporate-owned Franchises are only conceded in countries where corporate properties cannot be foreign-owned. The group designs and manufactures almost everything by itself, and new designs are dispatched twice a week to Zara stores. Most manufacturing is now in low labor cost countries, mainly in Morocco, China, and Turkey, although much production continues in Spain and Portugal, particularly for its Zara brand. In addition, Inditex has a factory for shoe design, production and distribution in the town of Elche...
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...fashion icon around the world. MACROENVIRONMENT In macro environment, Zara uses PESTLE analysis for their marketing environment. Zara achieve the targets when they used this analysis. POLITICS Government policies and political parties are responsible for developing political environment. Government is the major factor in business; in form on policies they may support industry. Zara has been in Spain until now and it is one and only a major on Europe. Zara has growth in many countries nowadays; political must be the most important if Zara wants expand their outlets. Zara has options to expand its business in European countries because of their safe and economic circumstance. ECONOMY Zara has been dealing with many issues in economic factor; the currency, taxation rates and so on. The economic condition has been unstable in few years but Zara can handle this problem without doubt. Zara successful in getting market share and has been not affected by recession. Before entering the new markets, the currency rates and the economic condition of that country is evaluated. One of the most stable country is Spain, this because it is a predictable demand in markets. SOCIO-CULTURE Zara is currently operating in a single country and it faced social influence that was already coped by Inditex group for its others brands. Luckily, Zara based on country that has independent cultural roots, Spain. Spain has long history with fabulous artistic. This country has a calm social environment...
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...Running head: Probability of Appeals and Reversals Probability of Appeals and Reversals Jackson County Judges Debra R. Hunter CSU Global Campus Math 410-Quantitative Business Analysis Jose Romero Instructor 03/08/2015 Probability of Appeals and Reversals Jackson County Judges The Problem Using a problem given to us in our study of Quantitative Business Analysis an excel spreadsheet has been created in order to answer the given questions. Following is the given problem. 1. The probability of cases being appealed in each of the three different courts. 2. The probability of cases being reversed in each of the three different courts. 3. The probability of cases being reversed given an appeal in each of the three different courts. 4. The probability of a case being appealed for each judge. 5. The probability of a case being reversed for each judge. 6. The probability of reversal, given an appeal for each judge. After these six questions have been answered then a ranking of the judges can be accomplished. The numbers being used in each of the calculations is coming from the excel worksheet that is attached. The last question of the given problem follows. Rank the judges within each court for each of the probabilities in 4 - 6. Then, find the sum of the ranks and get an overall ranking for each judge. Evaluate and discuss the meaning of your results. Results The following results are based on the calculations found...
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...Extreme Business-Models in the Clothing Industry - A Case Study of H&M and ZARA Kristianstad University The Department of Business Studies FE6130 Bachelor Dissertation International Business Program December 2007 Tutors: Håkan Phil Timurs Umans Authours: Susanne Göransson Angelica Jönsson Michaela Persson Abstract In the clothing industry firms compete successfully by applying different businessmodels. H&M and ZARA are two extremes in the clothing industry. H&M’s business-model mainly focuses on outsourcing and ZARA’s business-model mainly focuses on in-house production. The problem is that the existing theories alone cannot explain why two firms competing in the same environment under the same conditions choose different business-models. The purpose of this dissertation is to further expand the idea of why the two clothing firms H&M and ZARA chose different business-models. Our set of Complementarities for H&M and ZARA are based on the information derived from studying theories, the EU clothing industry and the two firms. Finally, Complementarities were analysed by conducting interviews. Our Complementarities partly explain why H&M and ZARA chose different business-models. However, our analysis is applicable for H&M and ZARA since the Complementarities are based on characteristics found in these two firms. The value of Complementarities can be used by other firms if they find their specific characteristics. Keywords: business-models, internalization, governance...
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...ZARA: Fast Fashion A Written Analysis of the Case Presented to the Faculty of School of Business and Governance Ateneo de Davao University E. Jacinto Street,8000, Davao City In Partial Fulfillment of the Requirements for the Subject MGT 428: Production and Operations Management GODOY, EARL JOY A. SUARIO, LEI ANGELA D. TACADAO, VANESSA CAREM C. TAR, KESSIA CAROL D. TOREFIEL, CHRISTINE G. December 11, 2014 I. Executive Summary This paper presents the case analysis of Zara, the largest and most internationalized of Indetex’s chains. In 2001, it operated for more than 507 stores in countries around the world, including Spain. It is a Spanish clothing and accessories retailer based in Galicia, Spain; which is founded by Amancio Ortega and Rosalia Mera. The advantage of Zara is that in just a span of three weeks, it can have a new product on its shelves ready for their consumer to purchase compared to their competitors that required from three to, even, six months. Also, the first store opened in La Coruña proved to be a success, and Ortega saw the opportunity to expand to other cities around Spain and even cities around the world. Due to rapid expansion of Zara, they suffer loss which is supposedly evitable. Zara does not take into account the product demanded in a certain country. Zara should focused on careful interpretation of the demand in a certain country for them to know whether to expand or not...
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...Case 1: Zara, H&M, Benetton Supply Chain Strategies | Executive Summary The performance of many organizations is highly dependent on utilizing the correct supply chain model. This report focuses on the analysis of the supply chains of three clothing companies: Zara, Hennes & Mauritz (H&M), and Benetton. The analysis was focused on three aspects. First, the supply chain models of the three retailers were compared and contrasted and there was an evaluation whether each of the retailers has the right supply chains for the type of products they offer. Second, the analysis highlighted how the supply chain architecture of the three companies impacts the management of inventory, information, and capacity. Finally, the analysis also included some research on how the supply chain strategies of these retailers have changed in recent times and its impacts on their relative competitive advantage. Based on the analysis, several recommendations around strategic and process improvement were provided for Zara, H&M, and Benetton. The recommendations are further supported by an implementation plan as well as an overall assessment of the risks that the retailers face. Sources of analysis include the two Harvard Business Review Articles “What is the Right Supply Chain for Your Product” and “Rapid-Fire Fulfillment”. The analysis also utilized several research reports from DataMonitor. Analysis Zara, H&M, and Benetton are all clothing retailers that focus on fashion...
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...1763 stores , 78 countries worldwide. Zara has continually maintain its mission to provide fast and affordable fashionable items . Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and five other apparel retailing chains, continued a trajectory of rapid, profitable growth by posting net income of €€ 340 million on revenues of €€ 3,250 million in its fiscal year 2001. Zara welcomes shoppers in 86 countries to its network of 1.763 stores in upscale locations in the world's largest cities. Zara's approach to design is closely linked to their customers. 2. 2. Around the world Zara 1.763 Zara Kids 171 Pull & Bear 817 Massimo Dutti 630 Bershka 899 Stradivarius 794 Oysho 529 Zara Home 364 Uterqüe 91 TOTAL 6.058 Inditex is a global specialty retailer that designs, manufactures, and sells apparel, footwear, and accessories for women, men and children through its chains around the world. Zara is the largest and most internationalized of the six retailers that Inditex owns. By the end of 2001, Zara operated 507 stores around the world, including Spain. •Gap, H&M and Benetton are considered Inditex's three closest comparable international competitors. • Zara, is relatively perceived as more fashionable than all the other three and prices less than Benetton and Gap but higher than H&M. • In these four competitors, Benetton and Gap place at relatively less fashionable...
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...Iacob University of Huelva HUELVA, SPAIN 2015 Abstract Zara is a retail company belonging to the Spanish company Inditex Group. Currently, Zara has 1,808 stores in 86 countries. This paper will analyse Zara’s business model, based on innovation and flexibility, as well as logistics chain and the various tools used to recognize the continuous changes in fashion trends and turn them into a product marketable within a few weeks. Compared with the competition, Zara has three distinctions: vertical integration to achieve a faster turnaround time; rapid expansion; and use of the store as the main tool for promotion, with low spend on advertising. This company offered a product design and quality, low price. In addition, resources and competences have allowed develop a different business model, where all processes from product design, to manufacturing, distribution and sales are carried out within the same organization. Key words: Strategic Management, Strategy, External Environment, Michael Porter’s Generic Strategies, Vertical Integration, Balanced Scorecard, Globalization Culture Introduction Company Background Four letters that make up a fashion brand known around the world. Zara is a Spanish brand of clothing and accessories and the foundation of Inditex’s success as well as their first retail format. Inditex S.A. is a Spanish multinational group of textile manufacturing and distribution established in 1975 in A Coruña (Northwest Spain) by the visionary Amancio Ortega Gaona...
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...University of Sunderland The faculty of Business and Law _______________________________ Module Title: Marketing Management Module code: PGBM15 The market analysis of ZARA ______________________________________________ Student Name: Xia Tang Student Number:139151583 Tutor: Steve Storey Module Leader: Sudipta Das Word Count:4005 Date of submission: 16th June 2014 Contents Introduction of ZARA 1 1 Dynamics and trends within the marketing environment of ZARA. 1 1.1 Introduction of marketing environment 2 1.2 Macroenvironment-----PESTLE analysis of ZARA 2 1.3 Microenvironment analysis of ZARA 4 1.4 Poter’s three generic strategies on ZARA 4 1.5 SWOT analysis of ZARA 5 2 The importance of market research,marketing mix and service innovation for Zara 6 2.1 The importance of market research for ZARA 6 2.2 The importance of Marketing mix for ZARA 9 2.3 The importance of ZARA’S Service innovation 11 3 Marketing techniques for manager-decision 12 3.1 Segmentation ,targeting & positioning 12 3.2Marketing objectives and goals 14 3.3Marketing strategies and programmes 15 4 Conclusion and suggestions 17 References: 19 appendix…………………………...…………………..20 The market analysis of ZARA Introduction As one fashion brand of the Inditex Group, ZARA were founded in Spain in 1975, by Amancio Ortega and Rosalía Mera. When its first store provide low-priced lookalike products of popular, higher-end clothing fashions, after then...
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...this paper, I’m going to talk about H&M with SWOT and Macro analysis. The full name of H&M company is called Hennes&MauritzAB0. Not only clothes, but also makeups, H&M established its own stores in 54 countries all over the world, it has over 3,300 stores and more than 116,000 staffs. However, the unusual situation is H&M dose not have its own industry to produce, it has cooperation with more than 900 exclusive industries in Asia and Europe. Let us have a look of the development history of H&M. Because of the travel to America, the creator Erling Persson planed to establish a cloth brand to provide cheap, fashion clothes for women in Sweden. The brand was named Hennes, which means “Her” in Swedish. In the 60th century, stores were established in Norway and Denmark. To expand the market, Erling Persson bought a shop for selling guns and hunting tools named Mauritz, from then on, the brand start to produce clothes for male. Also, it is not hard to see, the name H&M were given to the brand. In the following years, H&M designed clothes for kids, youths and babies. Expanding the market to England, Switzerland, Germany in 70th century, Holland, Luxemburg, Belgium and Austria France in 90th, 1999 in Spain and finally in year 2000, H&M established the store in the United States of America. Now there are over hundred stores in China. Not only Beijing and Shanghai, cities, like Qingdao, Nanjing, Xiamen, Wuhan, Dalian and Chengdu all have H&M...
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...concerning their internationalization strategy. The Uppsala model is an organic growth model, which aims to minimize psychic distance through small incremental steps in the internationalization process. Zara opened its first store in La Coruna in 1975 and focused on the domestic market in the early stages. Gaining experience from the home country before entering a foreign market is characteristic for the Uppsala model. The expansion of Zara was first limited to Spanish cities with more than 100,000 inhabitants. Due to the maturity of the Spanish market, Zara was aiming to expand to the international market. Because of the geographic and cultural proximity to Spain they started their foreign operations by opening a store in Portugal. This enabled a gradual learning-by-doing process, concentrating first on countries close to Spain. Subsequently they preceded the internationalization process by entering different European markets. The intention was to keep a low level of psychic and cultural distance in order to internationalize step-by-step. After obtaining more knowledge and experience in foreign markets, Zara started expanding to other regions more rapidly and out of consideration for geographical or cultural proximity. In general, the internationalization strategy of Zara can be best compared to an ‘oil stain’. While entering a foreign market, Zara first concentrates on a strategic area with the intention to gain market information and then expanding to other regions in that country...
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...which it can respond to market forces. In order to determine Zara’s future direction, Inditex needs to understand the financial viability of the quick response system, as well as the design of the system and its underlying processes. Upon conducting a thorough analysis of this critical system, Inditex should evaluate the strengths, weaknesses, opportunities, and threats associated with the quick response system. Considering the significance of Zara’s contributions to Inditex, it is critical that measures are taken to ensure Zara sustains its competitive advantage over the long-term. Financial Analysis A detailed financial analysis reveals that Zara enjoys a good measure of operating efficiency relative to its three major competitors: The Gap, Benetton, and H&M. While all of these companies share the common characteristic of being retailers in the global apparel industry, each has a unique value proposition and has distinct operational methods. The ensuing discussion attempts to highlight Zara’s efficiencies, as afforded by its quick response system, by comparing the key operating ratios of these four companies and determining what other individual factors affect their operating efficiency. An analysis of the gross, or operating, margins of the four companies reveals that the apparel industry as a whole enjoys a fairly comfortable spread between the cost of goods sold and sales. This is...
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...covered in the introduction to show an overview of current Zara’s business model. Second is the Michael Porter’s model analysis based on Zara that including three generic strategies and five forces. Third, some of IT applications are really help the Zara to make their business more efficient, the applications will be applied in the Enterprise Resource Planning (ERP), Supply Chain Management (SCM) will emphasize a speed supply chain for Zara, and Customer Relationship Management (CRM). Finally is about the relationship between Zara and Peter Drucker’s theory, Zara and Andrew McAfee’s theory, Zara and Hey’s theory. The last part will conclude where is Zara today and make brief recommendations. Table of Contents Introduction 4 Zara and Michael Porter’s Model 5 Generic Competitive Strategies Analysis for Zara 5 Five Forces Analysis for Zara 6 Suppliers Bargaining Power 6 Buyer Bargaining Power 7 Threat of New Entrants 7 Threat of Substitute 8 Industrial Competitors 9 The Value Chain of Zara 10 Enterprise Resource Planning (ERP) 11 Supply Chain Management (SCM) 11 Customer Relationship Management (CRM) 13 Zara and Peter Drucker’s theory 13 Zara and Andrew McAfee’s theory 14 Zara and Tony Hey’s Theory 15 Conclusion 16 Recommendations 16 Appendix 18 References 19 Introduction Inditex is a largest fashion ground in Spain and owns 9 brands around the world, such as Zara, Massimo Dutti, Bershka and so on. Zara is the most successful brand...
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...been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap. The global textile and clothing industry The removal of all import quotas in the textile and clothing industry from January 2005, involving the unrestricted access of all members of the World Trade Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector (Keenan, et al., 2004). This new scenario has created opportunities for large exporters like China and India 1 that are considerably increasing their market share whilst at the same time creating challenges for European Union member states in order to remain competitive internationally. The major trends that are restructuring and characterising the textile and clothing sector are as follows:...
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