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Competitors of ZARA
“ZARA walks at the pace of society, dressing
ideas, trends and tastes that society itself has
◊ The business is in clothing industry.
◊ Its market is all society members.
◊ Zara’s value and goals are related to satisfaction the
customers matured tastes.
Strong product diversity
Strong revenue growth
Overdependence on the European market
Reliance on local designers
Growing apparel retail
market in Asia
Growing online sales
Rising Labor cost in European
DIFFERENT ENTRY MODES
Wholly Owned Subsidiaries
The major comparable players that ZARA face
at international level are:
Industry without smokestacks
Indigenous cultural influence
Spain $ 1478206 $8.84nHund
China $ 7203784 $ 1183983
France $ 22775518 $ 6011
• Equality, multiculturalism, and conciliation
•Commitment to equality and non-discrimination
•Confronting gender discrimination and sexual harassment
•Work and family life
• Global Agreement with the UNI Global Union
•Health and safety
THEORY X and THEORY Y
Zara- Theory X
INDITEX- Theory Y
•Innovative and encourages individuals to reach highest potential
Organization exists to serve human needs.
Organization and people need each other.
When the fight between the organization and
individual is poor, one or both will suffer.
A good fit between individual and organization
Organization Type Z (Modified American)
Collective decision making
Slow evaluation and promotion
Implicit informal control with explicit , formalized
Moderately specified career paths
Holistic concerns, including family
Zara’s CSR programs
o Zara reduces the production of waste and encourages recycling.
o Use of paper or biodegradable plastic bags.
o Use of ecological fabrics, like organic cotton E.g. “Made in Green”
o Animal welfare policy.
o CSR with Suppliers E.g. acceptable working conditions, prohibition
of all forms of forced labour.
o CSR to the society and environment E.g. maximize the efficient use
of energy in manufacturing.
Zara does not involve themselves in any kind of corporate
philanthropy as it is continuous innovation based on customer
desires and almost all the acts are initiative based.
Clothing: men, women, children
• Shoes, cosmetics
• 11000 items in product mix
• Rapid changes in design
• Organic raw materials
Stores across 6 continents, 73
• 1751 stores in total
• Location: city hubs
• Online stores recently launched
Fashionable clothes at
• Pricing at cost + a profit margin
• Advantage as both manufacturer
Very little advertising, 0.3%
• Shop windows serve as
• Opening new stores, rapid
• website video
• Own workers, sales force, designers
• Efficient at work
• Dedicated to fulfilling customers’ demands
• Fulfills Zara’s mission statement
• High quality product
• Made from organic, eco friendly materials
• Very fashionable, latest in the market
• Stores are really spacious and products are located
• Extremely fast production of goods. From design to store in
• Attractive presentation of products in shop windows
• Top fashion house
• High quality product at affordable price
• Environmentally conscious; sustainable resource management
Zara earned a positive brand image by fulfilling
Direct Marketing : Zara’s own website, stores at
almost in every big cities of the world; where
customers can buy their products.
Internet Marketing : Advertisements, Apps, Blogs
Promotional : Zara keep updating the collections
and spread it on the websites and social networks.
offers sales and discount to reach more customers.