PREPARED BY:Ankita Sharma

TwinkleChandni

HemaPiyush

Zara is the flagship chain store of Inditex Group ownedby Spanish tycoon Amancio Ortega, who also ownsbrands such as Massimo Dutti, Pull and Bear, Oysho,Uterqüe, Stradivarius and Bershka.

The group is headquartered in A Coruña, Spain, wherethe first Zara store opened in 1975.

It is claimed that Zara launches around 10,000 newdesigns each year.

Its most unusual strategy was its policy of zeroadvertising; the company preferred to invest apercentage of revenues in opening new stores

ZARA is a Spanish clothing and accessories retailer

Zara delivers new products twice each week to its 1,763stores around the world.

Zara has developed a highly responsive supply chain thatenables delivery of new fashions as soon as a trendemerges.

Board Members:

Mr. Pablo Isla Álvarez de Tejera

(Chairman and CEO)

Mr. Amancio Ortega Gaona

(Founder of Inditex and Member of the Board)

Mr. José Arnau Sierra

(Deputy Chairman)

ZARA BRANDS SUCCESSZara is one of the most well known brands in the

world and is also one of the largest internationalfashion companies. They are the third largestbrand in the garment industry.

The Zara clothing line accounts for a huge bulk ofits parent group’s revenues.

Zara’s success proves that if a retailer can forecastdemand accurately, far enough in advance, it can enablemass production under push control and lead to wellmanaged inventories, lower markdowns, higherprofitability (gross margins), and value creation forshareholders in the short- and long- term.

ZARA’s BUSINESS MODEL: Adding value beyond profits

Main IssuesThe elements supporting Zara’s business structureand strategy are also greatly interlinked andinterdependent. The following three factors standout:

Extensive market research providing a constant streamof inputs into the product development process, ratherthan in batches or discrete seasons.

Locating various business function in close proximity ofthe headquarters, and tight control, allows the variousfunctions to coordinate and take joint-decision veryquickly.These provide the capability to respond veryquickly to the market research-influenced decions.

Communication and information Technology areabsolutely vital to managing the constant interface ofvarious and management of the huge variety of productinformation.

ZARA‘S STRATEGY OF DISTRIBUTION AND VERTICAL INTEGRATION Zara is a chain that has developed a successful diverse

method of doing business in the fashion industry. Zaraby working through the whole value chain is veryvertically integrated and highly capital intensive.

VERTICAL INTEGRATION: a distinctive feature of Zara’sbusiness model, has allowed the company to successfullydevelop a strong merchandising strategy. This strategyhas led Zara to create a climate of scarcity andopportunity as well as a fast-fashion system. Zaramanufactures 60% of its own products. By owning its in-house production, Zara is able to be flexible in thevariety, amount, and frequency of the new styles theyproduce

PRODUCTsZara stores have men's clothing and women's

clothing, each of these subdivided in LowerGarment, Upper Garment, Shoes, Cosmetics andComplements, as well as children's clothing (ZaraKids).

Zara available in now all sizes..

Small boutiques

Mid sized store

Colossal sized Department store

Strengths1.Cost leadership strategy

2.Efficient distribution

3.Information technology

4.Fast delivery of new products ,andtrends

Weaknesses1.Centralized distribution system

2.Doesn't spend much money onadvertising

3.Zara only has one manufacturingand distribution centre in the world

Opportunity

1.Global market penetration

2.Online market

3.Distribution centre in us

Threats

1.Local competitors

2.Global competitors

3. Zara based in Spain and has a hugeno of stores in Europe will dent in

revenues.

SWOT analysis

SWOT ANALYSIS

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