Zara

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Zara

  1. 1. Anna Sow Joon Park Olesya Batrawa Shahida Robab Harshana Godamanna
  2. 2. There are three steps to being a successful fashion company 1. Make clothes that people want to wear 2. Sell enough clothes for more than you made them 3. Do it again, and again, and again
  3. 3. Introduction • Zara is a game changing clothing giant • Practices fast fashion- trends moves • Supply chain has undergone tremendous changes • Mission to provide fast, affordable, and fashionable items • Technology enabled strategy • No advertising, rarely holds sales • Founder of Zara is the world’s richest fashion executive
  4. 4. Mission and goals • We save energy • The eco-friendly shop • We produce less waste, and recycle • Our commitment extends to all our staff • An environmentally aware team
  5. 5. Zara Customer characteristics • Full shape body women • People ages 18-40 with mid range income • People interested in fashion trends • People who sought the benefit of clothing
  6. 6. How dynamic is the industry • Zara is in a fast changing fashion industry • Manufactures fashion-sensitive products internally • Zara re-invents to maintain the ever changing industry • Designers pay close attention to customer feedback
  7. 7. Zara’s industry life cycle
  8. 8. Zara as a global company • Europe • Asia-pacific • North America • South America • Central America • Africa
  9. 9. Zara’s Distinctive Competencies • Compliment the full body shape • Product symbolism • Fresh look with colors and materials • The Zara label aims at customer loyalty
  10. 10. Zara’s Distinctive Competencies • Above-the-line just print advertising • Below-the-line they use internet , events, PR and brand communications along with media cooperation • Communication goals of Zara are to inform the consumer about new products
  11. 11. Zara stores around the world
  12. 12. Zara stores around the world
  13. 13. Zara stores around the world
  14. 14. Barriers to Imitate • Quick response system- composed of human resources and information technology • Accelerated IT software for the transfer or design and communication • High company attributes- means beneficial employee package • Maintains secrecy of computer network linking System • Vertically integrated Do not outsource!
  15. 15. Adaptation to changing industry • Rising production costs • Increasing wages • Above factors caused Zara to employ cost leadership strategy, which is difficult to pursue in in rapidly-evolving industry.
  16. 16. Building blocks of Competitive Advantage • Efficiency – Flat structure • Quality – Satisfaction from customer needs
  17. 17. Building blocks of Competitive Advantage • Innovation – 18,000 new product designs a year • Responsiveness – Prototype and Model Quickly – Fast feedback
  18. 18. Porters Five Force Model • Rivalry : High – High exit barrier • Threat of new entry : High – High fixed cost – Long sales cycle • Supplier power : Low – Vertical intergradient
  19. 19. Porters Five Force Model • Threat of substitutes : Moderate – H&M, GAP, Foever21 – Low buyers’ switching costs – Substantial customer loyalty • Buyer power : Moderate – Trendy Fashion – Price
  20. 20. SWOT analysis Strengths  Global market presence  Vertically integrated  Latest fashion trends Weaknesses  Low on store inventory  Eurocentric model  Simple products Opportunities  Growth in international market  Diverse cultural area Threats  Many competitors  Low cost in switching
  21. 21. Zara didn't have to invent a brand new product to become the world's biggest fashion retailer, it just had to invent a new process Conclusion
  22. 22. Thank You

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