Zara Fast Fashion Case Essay

3953 words - 16 pages

Table of Contents1.0 Executive Summary32.0 Situation Analysis42.1 Environment42.1.1 Demographic environment42.1.2 Economic Conditions and trends42.1.3 Social-Cultural environment42.1.4 Technological environment52.1.5 Political Legal environment52.1.6 Natural environment52.1.8 Environmental Opportunities52.1.9 Environmental Threats62.2 Industry62.2.1. Suppliers62.2.2 Consumers62.2.3 New Entrants72.2.4 Competitors72.2.5 Substitute Products (Threat of Substitute products)82.2.6 Industry Opportunities82.2.7 Industry Threats82.3 Organization82.3.1 Strengths82.3.2 Weakness92.4 Marketing Strategy92.4.1 Objectives92.4.2 Analysis of Sales, Profit and Market Share92.4. 3 Analysis of target market(s)102.4.4 Analysis of Marketing Mix Variables112.4.5 Summary of Marketing strategy's strength and Weakness:123.0 Problems found in Situation analysis123.1 Primary Problem123.2 Secondary Problem134.0 Strategic Alternatives for Solving Problems134.1 Description of Strategic Alternative 1134.2 Description of Strategic Alternative 2154.3 Description of Strategic Alternative 3165.0 Selection of Strategic Alternative and Implementation176.0 Conclusion17Bibliography/List of References181.0 Executive SummaryInditex, headquartered in Galicia region of Spain is one of the world's fastest growing clothing retailer that designs, produces and sells apparel and fashion accessories through 1,284 stores around the world under many brand names. Zara is an apparel chain owned at operated by the Inditex. It specializes in fast fashion and offers women's, men's and children's fashions at affordable prices.This report analyzes the case Zara: Fast Fashion and the problems associated. The report covers the detailed study of Zara's:•Situational Analysis, which includes factors such as the environment, industry, SWOT analysis, and marketing strategies.•Marketing problems faced by Zara and narrowed it to two primary issues:-1.Growth and product differentiation in the International markets.2.High manufacturing and distribution costs.Our team has designed the following strategies in order to aim to overcome the problems faced:1.Product differentiation can be used as strategy to increase market penetration2.Different pricing strategy for each country3.Sourcing more goods from cheaper labor marketsThe above designed strategies target to improve Zara's current problems and resolve the issues.2.0 Situation AnalysisZara, an apparel chain owned at operated by the Inditex of Spain specializes in fast fashion and offers women's, men's and children's fashions at affordable prices. At the end of fiscal year 2001 Zara was operating 1,284 stores world wide and had total revenue of €3,250 million. Inditex's headquarters and its major assets are located in the Galacia region of Spain. Inditex also operates five other chains: Massimo Dutti, Pull and Bear, Bershka, Stradivarius and Oysho.2.1 EnvironmentThe following are the environmental (macro environment) factors that help us understand the...

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