Zara Strategy
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Masters in Financial Management
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2011 - 2012
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Zara: responsive, high speed, affordable fashion
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Strategic Management
Prof Dr Peter Verhezen
Quynh Lan Nguyen
Engaging in irregularities is severely sanctioned in correspondence with article 34 of the Examination rules.
We hereby declare that we have not engaged in any such irregularities.
Student(s)’s signature(s) Table of contents
Introduction 2
Challenges 2
Industry competition 3
Positioning and competitive advantage 5
Blue Ocean Strategy 6
Resource capacity 8
Performance measurements 9
Reputation risk 11
Recommendation and conclusion 11
Reference 13
Introduction
Inditex is one of the world's largest fashion retailers, present in 78 countries. It welcomes customers at its eight-store formats - Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe (Inditex Group (a), n.d). Among these brand names, Zara is the most successful one that contributes a large portion to the total revenues of the group. Zara offers clothes and accessories to women, young girls, men and children. The first Zara shop was opened in 1975 in La Coruna, Spain and now Zara has a network of 1.557 stores in upscale locations in the world's largest cities (Inditex Group (b), n.d). What makes Inditex and its Zara brand so successful is its unique business model that will be discussed more detailed in this paper. The distinct business model helps Zara differentiate itself from competitors and gain world – wide competitive advantage. However, in the past few years, the company has faced a number of challenges, which arise from both internal and external environments. How Zara deals with present and future obstacles will be
Masters in Financial Management
-------------------------------------------------
2011 - 2012
-------------------------------------------------
-------------------------------------------------
Zara: responsive, high speed, affordable fashion
-------------------------------------------------
Strategic Management
Prof Dr Peter Verhezen
Quynh Lan Nguyen
Engaging in irregularities is severely sanctioned in correspondence with article 34 of the Examination rules.
We hereby declare that we have not engaged in any such irregularities.
Student(s)’s signature(s) Table of contents
Introduction 2
Challenges 2
Industry competition 3
Positioning and competitive advantage 5
Blue Ocean Strategy 6
Resource capacity 8
Performance measurements 9
Reputation risk 11
Recommendation and conclusion 11
Reference 13
Introduction
Inditex is one of the world's largest fashion retailers, present in 78 countries. It welcomes customers at its eight-store formats - Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe (Inditex Group (a), n.d). Among these brand names, Zara is the most successful one that contributes a large portion to the total revenues of the group. Zara offers clothes and accessories to women, young girls, men and children. The first Zara shop was opened in 1975 in La Coruna, Spain and now Zara has a network of 1.557 stores in upscale locations in the world's largest cities (Inditex Group (b), n.d). What makes Inditex and its Zara brand so successful is its unique business model that will be discussed more detailed in this paper. The distinct business model helps Zara differentiate itself from competitors and gain world – wide competitive advantage. However, in the past few years, the company has faced a number of challenges, which arise from both internal and external environments. How Zara deals with present and future obstacles will be