Fill the details/instructions form and checkout for your essay - pro writers; top college graduates only in less than 5 mins, NO AI—Plagiarism-free!.
Posted: August 11th, 2020
Another advantage is that the company has one of the highest numbers of products in the world that produces annually 11.000 and its key competitors 2000-4000.”The company keep low inventory in stock because each new product is supposed to be sold within 10 days, if not is replaced after 2 weeks. By this measure the company keeps low cost of inventory. Every store in Spain is supposed to be visited on average 3 times a year, but Zara 17 times”(according to article Zara a Spanish Success Story, CNN, 15 June 2001).
Also this year the company will enter Australian market. “The company has a core concept in information technology to support its international logistics system and online selling where return and exchange is the same as the store system”(Wikipedia). Also in some location people can buy Zara products by IPod, I Phone application. “Zara model have more flexibility in production sales, and stock management and its store’s managers report back every day to designers in La Coruna for sells which shows a nice coordination between departments in order to meet costumer’s needs”(Zara website).
“Zara is part of Spanish group Inditex is expanded worldwide in 77 countries with 5000 stores. Net Income was increased by 42% for the first 9 months of 2010 and share price 57.60 euro” (Inditex Group). The company has Strong relationship between wholesalers, stores, management and costumers. Also, the use of the highest quality of materials for clothing.” Zara revenue for 2009 was 7.071 billion Euros and operating profit is 15% higher than H&M and GAP, but working capital is the lowest”(Wikipedia).
Zara is one of the largest clothing retailers in the world and this can cause its weakness in different parts of business, and is too difficult to control.” The company is global but has presence in 77 countries” (Wikipedia).Also “Zara’s greatest advantage lies in its ability to provide the most interesting cutting-edge items, risk free. Normally the more cutting edge the design, the greatest the risk. Clothes do not always last long” (Zara 2.0- Fashion index.com). Zara has a reputation for new design product development and creativity, but is the risk that their innovation may stumble in future. Costs of doing business with Albanian stores, while the Zara is located in La Coruna Spain. Although ZARA has a successful business model it also have some weaknesses which could limit its scalability and ambitious growth.
“ZARA constitutes around 80% of Inditex business (8 companies) which means a failure in ZARA can put the whole group at a risk” (Inditex group).
Advertisement is becoming an important part of the business and it reflects directly to the sales. “Zara’s in-store advertisement model may not work going forward” (Zara). Another weakness for the company in Albanian market is that, most of people are low income and could be difficult for the Zara to keep the growth.
“Merge with Inditex group has created more possibilities to invest in emerging markets” (Wikipedia).
“Zara stores are located in 77 countries and are lot of opportunities to invest and expanding the market as in India and China” (Inditex). Albania is a nice opportunity for the company to open stores because people like high fashion brands. New location and stores offer the company opportunities to exploit market development.
Grow into new markets/consumer segments Albanian Consumer Taste
Albanian consumer view ZARA as fashionable house. If ZARA needs to grow in Albanian it needs to address specifically the Albanian needs and perception of fashion.
The biggest threats are its competitors as H&M, GAP and Benetton and new entries in market that want to recapitalize their profits in new markets as Albanian. Rising production cost because of labor and raw materials. As economic crisis is striking back costumers are trended to spend less.
Imitation of company’s logo by people that do not have permission to use it.
– Increase in Euro Rate
An increase in Euro rate will increase the consumer selling price, consequently Zara will lose price advantage against relative competitors outsourcing in Albanian lek.
Zara sales are increasing 25% over the past 5 years it has become one of the world’s fastest growing retailers, and to keep this growth has to invest in emerging markets.
“Zara strategy is growth through diversification with both horizontal and vertical integration, and brings new fashion” (Zara website). The company controls all distribution channels, and invests a lot in Real Estate business in order to buy prime locations for new stores. This risk for Zara because its net cash flow is less than its competitors.
“Although ZARA has a successful business model it also has some weaknesses which could limit its ambitious growth, Inditex over dependence on ZARA” (Wikipedia)
Zara’s business model is based by bringing new designs models in market every two weeks. For countries like Albania, where people are less fashion forward, it may be a challenge for Zara to sustain its presence. Other threat for the company in Albania is the politic stability that is still fragile because of disagreements between two main political forces. Petrol prices are very expensive in comparison with other countries and will affect the cost of products by increasing their prices.
“The weaknesses of Zara is to be part of Inditex group which has 8 companies and means failure of one of them can put Zara at a risk too”(Inditex group). The company has to find a strategy in order to overcome weaknesses and developed them into strengths. As you see from the chart the direction shows the strength- opportunity position (so). The strategy is to reduce the competitive threat by developing in market flexible new designs in order to meet costumer’s preferences on time.
Another weakness of Zara is raising production costs in Spain and Portugal with introduction of Euro in 2002. Products became more expensive for export. To overcome this Zara started to invest globally and new mergers in order to keep prices down as its competitors. If Zara enters in Albanian markets, it doesn’t have experience with Albanian laws and their culture for clothing but could overcome those barriers by creating franchise with local partners.
One of the greatest threats to Zara is the continuing an appreciation of the Euro against other currencies this means higher prices for the buyer and less competitive posture. To reduce threats of competition and exchange rate Zara has built factories in North Africa and emerging markets. Economic crisis that started in 2008 and still goes on has obliged costumers to spend less on clothing items, and the company must bring new designs with affordable prices in order to handle this situation.
Zara marketing strategy for Albanian market will include the use of targeted print media advertising and direct selling to Tirana and Durres area. The company will also use a website to keep costumers in touch with new designs and to sell products online. In order to be successful as a new Zara store in Albanian market we have to beef up our relationship with corporate headquarters. Also we have to put our franchise in position to provide the highest quality of clothing in Albania market by bringing new brand and new designs. Our marketing strategy is to communicate this to our customers and to build a good relationship with them.
Every student wants the best grades and that’s our Focus
Our team consists of outstanding writers who have specialized knowledge in specific subject areas and professionals experienced in academic research writing. They hold at least a graduate degree—230 with Masters and MSN qualifications, experts carefully selected and trained to ensure the best quality of our work. .
We’re dedicated to bringing on board top-notch writers who can provide excellent work at prices that make sense for college students; affordable papers. Our goal? To give you the best bang for your buck without ever compromising on the quality of our essay writing services—or the content of your paper. #Don’t forget to use the DISCOUNT code in the COUPONS section of the order form before you pay!.
The service guarantees that our final work is 100% original, rearched and human written expertly. We are committed to delivering plagiarism-free and AI-free work to each university/college student's 'write my paper' request. To uphold this promise, we check every draft for any possible instances of duplication, wrong citation, grammar errors and artificiality before we send it to you. Thus, you can always rely on us to write genuine and high-standard content for your essay assignments.
When you trust to place an order with Homework Ace Tutors, here is what happens: