Zara Business Assessment

In: Business and Management

Submitted By edinvz
Words 4312
Pages 18
ZARA

Word count: 3799
Table of Contents Executive summary 2 Zara background 3 External factors and competitive forces 3 PESTEL 3 Porter’s 5 4 Internal factors 6 Resources and capabilities 6 Manufacturing 8 Logistics 8 Public relations crisis and their effect on peformance 8 Evaluation of strategic options and recommendation 10 References 12 Appendixes 13

Executive summary
This project aims to provide an in-depth analysis of external and internal factors affecting performance of world leading retailer Zara. First of all, the brief background on Zara is provided in order to familiarise reader with the business model they implement. Secondly, the PESTEL framework is utilised as the base for analysis of external environment and its potential effects on company’s performance. Further, the Porter’s 5 forces are identified in order to assess where the competitive advantage stems from. After assessment of external environment, this paper provides the overview of internal factors which might be crucial for success, as well as drawbacks of Zara’s internal organisation. Assessment of internal environment starts from the evaluation of Zara’s resources and capabilities, followed by the critical analysis of manufacturing and logistics processes. Further discussion of the PR issues and its effects on company performance is provided. In addition, the benefits of corporate socially responsible policies are discussed. Overall conclusions on Zara strategic steps that are to be taken are suggested based on the conducted analysis of the internal and external characteristics of the environment Zara is doing business in.

Zara background
Zara is the flagship chain store of Spanish company Inditex Group which incorporates other brands such as Zara Home, Massimo Dutti, Pull and Bear, Oysho, Uterqüe, Stradivarius and Bershka. Zara is present in 86…...

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