1. Company Background

2. Competitors of ZARA

3. BUSINESS MISSION
“ZARA walks at the pace of society, dressing
ideas, trends and tastes that society itself has
matured.”
◊ 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.

4. STRENGTHS
Strong product diversity
Strong revenue growth
Strong distribution
network
Zero advertising

5. WEAKNESSES
Overdependence on the European market
Reliance on local designers

6. OPPORTUNITIES
Expansion plans
Growing apparel retail
market in Asia
Growing online sales

7. THREATS
 Counterfeit goods
 Rising Labor cost in European
region

8. DIFFERENT ENTRY MODES
Exporting
Franchising
Joint Ventures
Wholly Owned Subsidiaries

10. The major comparable players that ZARA face
at international level are:
 Benetton
 H&M
 Gap

11.  Spain:
Industry without smokestacks
Tourism
 China:
Communist Revolution
Indigenous cultural influence
 France:
Revolutionary legacy
Catholism

12. Country GDP(million
s)
Trade
Balance
Unemploy
ment
Rate(%)
Inflation
rate(%)
Spain $ 1478206 $8.84nHund
red Million
26.1 2.40
China $ 7203784 $ 1183983
Thousand
4.1 2.10
France $ 22775518 $ 6011
Million
10.7 1

13. Extrinsic/Intrinsic/Hygiene Motivation
• 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
•Retail Perspective
INDITEX- Theory Y
•Innovative and encourages individuals to reach highest potential

14. Hawthorne’s Theory
 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
benefits both.
Theory A/J/Z
Organization Type Z (Modified American)
 Long-term employment
 Collective decision making
 Individual responsibility
 Slow evaluation and promotion
 Implicit informal control with explicit , formalized
control
 Moderately specified career paths
 Holistic concerns, including family

15. Zara’s CSR programs
Initiative 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”
stamps.
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.
Corporate Philanthropy
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.

16. product
Zara’s
8P’s
place
price
promotio
n
people
positionin
process
g
physical
evidence

17. Product
Clothing: men, women, children
• Shoes, cosmetics
• 11000 items in product mix
• Rapid changes in design
• Organic raw materials
Place
Stores across 6 continents, 73
countries
• 1751 stores in total
• Location: city hubs
• Online stores recently launched
Price
Fashionable clothes at
reasonable price
• Pricing at cost + a profit margin
• Advantage as both manufacturer
and retailer
Promotion
Very little advertising, 0.3%
• Shop windows serve as
attraction points
• Opening new stores, rapid
expansion strategy
• website video

18. People
• Own workers, sales force, designers
• Efficient at work
• Dedicated to fulfilling customers’ demands
• Fulfills Zara’s mission statement
Physical
evidence
• High quality product
• Made from organic, eco friendly materials
• Very fashionable, latest in the market
• Stores are really spacious and products are located
beautifully.
Process
• Extremely fast production of goods. From design to store in
weeks
• Attractive presentation of products in shop windows
Positioning
• Top fashion house
• High quality product at affordable price
• Environmentally conscious; sustainable resource management

19. Integrated marketing
communication

21.  Zara earned a positive brand image by fulfilling
customers needs.
 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.