Zara - Spanish Fashion Company

Published: 2021-06-29 07:00:15
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Introduction to ManagementAssignmentSubmitted by: Suhrawadi bin OthmanDate: 09 JUN 2017Student ID: CT0290966Class: PT-DipComGS-18Introduction (217 Words)Zara is a Spanish fashion company that manufactures and sells fashion clothing and accessories. Zara is under the parent company of one of the leading distribution companies in the world, Inditex. Its founders, Amancio Ortega and Rosalia Mera, started the company back in 1975 in Spain and up till now, its headquarters is still located in Spain in Arteixo. It has evolved and established itself to be a global leading fashion company (ZARA, 2017) with 7013 stores in the world not including its online platform which deals with consumers worldwide directly (Inditex, 2015). As a fashion clothing retailer, its rivals include H&M, Uniqlo, GAP and Topshop.In 2015, the net sales value of Zara was reported to be 13,628 (in millions or Euros), with 4,699 worth of net profit that hints at its scale and position in the fashion industry (Inditex, 2015). The company has achieved this thru its ability to be at the forefront of innovation and quick delivery of updated designs to the consumers with new range of clothing coming in every season. The CEO of ZARA has mentioned that this was done by their simplistic strategy which is to make a link between the consumers demand and its manufacturing; and then to link its manufacturing to the company’s distribution (Mcafee, Dessain, & SJÖMAN, 2007). PESTEL Analysis (633 Words)Political AnalysisThe government is responsible in ensuring a stable platform for economic activity and improving the physical, social and market infrastructure. As ZARA is a multinational business, it is difficult to properly analyse the individual climate of the country that it operates in. However, in terms of the apparel industry, there is little to no import restrictions in between countries due to the General Agreement on Tariffs and Trade (The issues - Trade Tariffs and Barriers, 2017). This is both a blessing and a boon as competitor businesses will also enjoy such benefits.Another political pointer that can be taken advantage of is the emerging markets of China and India which welcomes foreign investment with open arms. This will help the expansion of apparel companies that are looking to enter emerging economies of China and India (Henry, 2008).Social AnalysisNybo and Lama (Nybo & Lama, 2010) states that for any business to prosper, society is the most important factor to take into consideration. All the more, as one of the biggest fashion retailer that operates worldwide, it becomes more significant that social factors plays a monumental role for ZARA to look at its strategies for improvement and to move forward with its growth. One of a key factor that affects consumers in the fashion industry is that they will prefer certain clothes that are in season or that are very current with the trend. As ZARA has a strong brand identity and is very famous in the fashion world, they have a level of social popularity and social acceptance of the brand which is a desirable trait for businesses (De Toni & Tonchia, 2003).The working population age group is experiencing a constant rise which changes the demographic of the consumers. (Holodny, 2016) Due to this factor, more consumers are including formal wear as their daily wear. As such, the fashion industry might have to adapt its fashion line to suit the aging population of the public.

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