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Introduction
Perhaps, it would quite right to say that case of Inditex and its leading apparel chain Zara can be considered as good example of a very successful business from not very developed country whereas the business is more like a ‘syrup’ of best practices in terms of strategy, human resource management, marketing and finance. ... So is the situation in Zara’s case. ...
In order not to get the reader confused about the unusual comparison provided in the above, the author would like to suggest that Zara represents very efficient but not typical approach to everything in its business, i. ...
The following report will attempt to tie together the existing Zara’s competitive advantages and best practices with modern trends and solid academic knowledge of the industry as well as search for a solution, which could extend Zara’s success into another dimension of efficiency and triumph. ... 0 Identifying Zara’s Key Success Factors
As it was already mentioned in the above the author believes that the company doing most of the things right and ethical. ...
The above points provide some kind of executive summary of the Zara’s success. ... For instance, the author did not come across of any Zara’s activities on the Internet, which applied along with ever so much expanding degree of the globalisation must be a very important issue for any business. ... The similar tasks could be given to Heads of other Departments, so when completed, Zara would receive a complete picture throughout the ROCE. ...
Unfortunately, the information provided by the case focuses on all of the Inditex, which makes it impossible to run the calculations specifically for Zara and therefore talk in rather general terms. ...
The above question in conjunction with framework provided by Jerry Johnson and Kevan Scholes (2002), resulted in Balanced Scorecard for Zara, which is presented in below. ...
The above balanced scorecard summarises to certain extent Zara’s Critical Success Factors (CSF) and provides measures of their achievement as for instance Training can be assessed through number of courses undertaken by a member of staff per certain period of time as well as his/her initial educational level and position held within the company. ... In brief, it is important for Zara to assess the industry attractiveness and future perspectives globally and locally, before making any expansion plans and decisions.
The knowledge provided by the case study, provides he evidence of the Zara’s past successful expansion but it also states that company is about to reach the extent where it is quite difficult to manage all of the chains along with a possibility for diseconomies of scale. ... However, such a possibility is not seen by the author as perspective direction, due to the fact that Zara is already well-diversified within the main stream of its products (shoes, bags, cosmetics). ...
The above framework could very helpful for Zara in making decision for the future expansions. In fact, the framework can be slightly re-worked in terms of plotting the countries of Zara’s presence on it. ...
For instance, if one takes the Italian market, which was approached by Zara a number of times. ... Since all of the supplies were from outside of Italy, it was not much of a problem but the existence of large number of substitute products and general attractiveness of the market itself was making it more difficult for Zara. ... 0 The Value Chain Analysis
Coming back to the things that have been said before, in terms of divorcing some of the existing chains as well as in order to offer Zara another valuable tool for analysis of the firm’s capabilities that is especially useful in outsourcing decisions, which are of a major importance taking into account that new markets are getting far and far from the company’s base in Spain. ... 5 in below:
The interesting fact is that The Value Chain for Zara consists mainly of its Critical Success Factors (CSF), regardless whether they are primary or supporting activities. ...
Sustaining of a competitive advantage has three core conditions as adapted from Philip Kotler’s work on Marketing Management of (2003):
· Durability – long-term means more secure basis for the competitive advantage, for instance, efficient logistics system used by Zara;
· Transferability – simplest means of acquiring the resources and capabilities necessary for imitating another firm’s strategy is to buy them according to Robert Grant (2001).
Approximate Word count = 3380
Approximate Pages = 13.5
(250 words per page double spaced)
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