Zara, the Story of Global Apparel Industry

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Zara, the Story of Global Apparel Industry

By | November 2012
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ZARA, the Story of Global Apparel Industry

CONTENTS1
Introduction2
External environment3
2.1 Overview3
2.2 PESTLE analysis3
2.2.1 Political and Legislative3
2.2.2 Economic3
2.2.3 Socio-cultural4
2.2.4 Technology4
2.2.5 Environment4
2.3 Porter’s five forces4
2.3.1 Potential new entrants4
2.3.2 Industry competitors5
2.3.3 Suppliers and Buyers5
2.3.4 Substitutes5
Porter’s value chain6
3.1 primary activities6
3.1.1 Inbound logistics6
3.1.2 Operations7
3.1.3 Outbound logistics7
3.1.4 Marketing and sales7
3.1.5 Service8
3.2 support activities8
SWOT analysis9
4.1 Strength9
4.1.1 Strength of supply9
4.1.2 Strength of product9
4.1.3 Strength of service9
4.2 Weakness10
4.2.1 Bad quality10
4.2.2 High cost of labor10
4.2.3 Europe centric model10
4.3 Opportunities10
4.3.1 Rising of income10
4.3.2 Online sales11
4.4 Threats11
4.4.1 Natural disaster or power outage11
4.4.2 Large numbers of competitors11
Conclusion12
Appendices13
Reference:14

Introduction

This report will analyze ZARA Company from three aspects — external environment, Porter’s value chain and SWOT analysis. By analyzing the problems which ZARA faces, the report will give recommendation in final. With development of times, people began to have more access to fashion. So the apparel industry is rising fast. ZARA was a small dress shop started by Amancio Ortega Gaona at a remote town in northwest part of Spain in 1978 (Lopez & Fan, 2009). Now, the little-known shop has grown into one of the largest international fashion companies owned by Inditex. ZARA relies on its own unique strategies arising in the fashion industry with an astonishing pace and now it has already had 1557 stores in 78 countries (Lopez & Fan, 2009). Although the...

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