Zara - The Fast Fashion Leader Essay Example | Topics and Well Written Essays - 4500 words

Zara - The Fast Fashion Leader - Essay Example The essay "Zara - The Fast Fashion Leader" explores the fashion leader, Zara company. Zara is also successful in ensuring barriers are established for new market entrants through self-operated manufacturing capacity and logistics strategies that cannot be rivalled without substantial capital investment. Weaknesses in the model were identified by conducting a comprehensive European/global environmental analysis of the competitive industry as well as through examination of Zara’s current business model. Weaknesses lie is in isolating the company from negative publicity, which has been a large problem recently with accusations of the company being supportive of sweatshop labour conditions with foreign suppliers. Additionally, research has identified weaknesses involving a lack of focus on more relevant, behavioural marketing strategy development as well as the company not maintaining proper focus on building more independent supply and logistics networks that would be owned by Za ra to improve its scope of control. Because of these weaknesses, it is recommended that Zara consider repositioning the business to a premiumisation strategy as a new business level strategy, diversifying self-managed manufacturing and logistics capabilities, and focusing on promotion that is more consumer-centric. It is further recommended that Zara differentiate its products with an emphasis on fashion-forward design in order to capture the attention of target markets that value exclusivity. These strategies will sustain Zara.’s future brand position and build more positive brand equity. TABLE OF CONTENTS EXECUTIVE SUMMARY 1.0 Introduction..................................................................................................... 2.0 Strategic issues and competitive forces........................................................... 2.1 Industry Life Cycle analysis................................................................ 2.2 Porter’s Five Forces analysi s............................................................... 2.3 PEST framework................................................................................. 3.0 Internal strategic audit..................................................................................... 4.0 PR crises at Zara.............................................................................................. 5.0 Recommendations for future business sustainability....................................... 5.1 Improving supply capabilities.............................................................. 5.2 Better utilisation of marketing theory and practice.............................. 5.3 Premiumisation..................................................................................... 5.4 Differentiation as business level strategy............................................. 6.0 Conclusion........................................................................................................ References 1.0 Introduction The fast fashion leader, Zara, provides fashion and accessory products to a variety of profitable consumer markets in multiple international markets. Zara stands out from competition most distinctly for the retailer’s ability to restock in-store inventories with a lead time of only two weeks or less. This is unparalleled in the retail industry as most retail competitors require months in order to launch a