If Zara wants to continue the expansion on other continents where they don't beneficiate of brand awareness it will be really difficult to be successful without an advertising campaign ?The Vertical Integration which is a distinctive feature of Zara's business model start to become more and more difficult to handle as long as the distance from the headquarters is getting bigger. E the customs will disappear and also the liberalization of markets (e.g.
Research Methodology This study is conducted using the survey methodology with a simple five point Likert-scale based questionnaire to gauge customer responses about the brand, its quality, pricing and promotion. Another brief survey of 20 employees involved in three different functions in the Zara store was also conducted to reinforce the customer survey findings.
The responses are tabulated and descriptive statistics generated to analyse the responses.
A treat that become significant for several companies (e.g. Conclusion Zara should most likely develop a second distribution center in U.
S and the third one in Asia in order to deliver fashionable clothes in a fast manner.
A case study of Zara can show that the history of the world brand began, as it often happens, from the desire of one poor person, gifted with will power, patience, organizational skills, to get ahead and offer the world something new.
Zara revolutionized the fashion world and the textile industry, giving birth to the very notion of “instant fashion.” Zara case study solution allows analyzing the uniqueness of this business-scheme.
By the accomplishment of the two objectives Zara is looking to create enduring profitable growth.
Introduction In my short study case I will start by illustrating Zara's present situation (according to the case), then I will continue with a brief analysis of the internal and external environments; in the next step I will develop some alternative ways of action and I will end by presenting my recommendations regarding the adaptation of the Zara's business model in order to successfully face the future economic context. A second objective is to continue their stores' growth in the countries where already exists in order to consolidate its position and increase its market share.
Zara definitively use a price differentiation that permits a differentiation between countries: starting with the lowest prices from Spain, then the prices are increasing with 10% for Southern Europe and 70% higher in the Northern countries, fact that is explained by the alignment to the standards of life in that area. Middle Besides its specific capabilities Zara is facing some issues also: ?
Because of an incorrect study the entrance on Argentina market was a failure because when analyzing the market the managers didn't consider all the political and the economical factors. The lack of advertising: There is made only twice a year advertises and that is at the end of seasons for the sales.