Business strategy is defined as long term plan which helps in development of organisation at competitive marketplace and leads towards success and growth. The given report is based on Zara which is famous retail brand that provide high quality products with changes in trends of market along with taste and preference of users. This is essential analyse brief summary of case study along with identifying strategic issues in terms of supply chain, logistics, advertising. These issues should be solved through use of theoretical concepts such as total quality management, SWOT analysis and desire advertising strategy in appropriate manner. Zara has to adopt strategy model which include fast fashion and online advertising strategies in terms of business magazine, Twitter and so on. With the adopting of such models, theoretical concepts, it is possible for Zara to survive and sustain at competitive marketplace and leads towards attainment of maximum goal and objectives. These will helps in improving business strategies as well as growth of company at market place and leading towards success at business place.
It is essential for business to operate their activities and operations at competitive market by following of different strategy so that they could meet need and demand of customers (Biljecki and et. al., 2015). Here, business strategy is defined as enterprise working plan in order to achieve vision, objectives, competing successfully along with optimising performance in terms of finance with help of business model. This will provide guideline to organisation to work in right path and direct and attain set or desired goal and objectives. The given report is based on case study of Zara which was founded on 1975 headquarters at Spain. It is operating at global level that is fashion brand and dealing in different products such as beauty, accessories, clothing, shoes, perfumes, swimwear and many more. It is regarded as world largest apparel retailer and earning high profits. Respective organisation has adopted business strategy for completing report. The main aim of report is to discuss about identification of strategies, relevant theoretical concepts and application of strategy model.
The given case study is based on Zara which is regarded as global largest fashion brand serving across nations to fulfil need and demand of customers (Cortimiglia, Ghezzi and Frank, 2016). There was 24% rate of unemployment rate at Spain despite that Zara has increase their revenue by 17%. In year 2012, Zara has average with new store opening on daily basis which includes 6000th store to be launched at London Oxford Street through it has influence on economic environment which affects success of respective organisation. It has uses capabilities as well as resources as core competencies for serving as potential source of advantages from rivalry. There are two critical goals such as giving customers what they want as well as getting them to be fast than other by adopting fast fashion approach. First capability is designing quickly where designer focus to create three items such as new clothing as well as pattern for makers cut, second is commercial sales that specialised from each region and third is providing products and services as per taste and buying habits of consumers in appropriate manner.
They possess team approach for matching quick as well as creative design so that information could be provided from sales staff with help of both regional as well as sector specialists for operating new fashion ideas (Golparvar-Fard, Pena-Mora and Savarese, 2015). Zara has managed their supply chain effectively than other companies where logistics division is main essence for success and growth of organisation at competitive market. A main objective is providing delivery of customised orders for 24 hours at Europe, Middle East and Latin America. It has not adopted online strategy till 2010 and after that it has paid attention towards customers and created advertisement at Facebook where it has 10million followers. More number of stores is owned through parent company. It is also operating dyeing plant for cloth providing significant control over products.
It is very important to identify business strategies adopted by Zara for running their activities and operations at competitive marketplace and attain maximum goal and objectives (Gu and et. al., 2017). Some of them are as follows:
Until year 2010, Zara did not have any online strategy to create awareness among customers (Harrell Jr, 2015). As it is highly reputed brand at marketplace in mind of customers for fulfilment of their need and requirements. There are many retailers which are using advertising approach as they focus on cheap fashionable clothes. In this context, Zara has faced issues related with online media. In order to overcome such issue, they have used online approach and created interest among customers at huge level following on Facebook where approx 10million followers are following as compared to competitors. It helps in providing stronger potential for pursuing online strategy as relative to their competitors. This business strategy helps to improve as well as growth of company at competitive market and leads towards success in effective manner. This strategy is very important in current scenario so that customer need and desired could be meeting in best manner. It will help in providing relevant information to users about upcoming products where customers can view at Facebook or see at online method.
Zara has team approach for matching quick as well as creative design for informing coming sales staff with help of sector as well as regional specialists for operating new fashion ideas (Iandola and et. al., 2016). They lack in supplying of products on timely basis for users and faced issues. In this case, supply chain has adopted which is managed effectively by Zara as compared to competitors rather than waiting for cloth in order to design that has already basic cloth as well as owns their own dyeing operations in order to maintain both control as well as speed. This is regarded as business strategies that will help to maintain as well as control organisation and supplying products effectively so that better results could be attained. It is very important to provide customers with timely delivery of products and services whenever required to them for positive results.
There are many companies which do not provide timely supply to customer and leads to create problem. In this Zara has set objective to deliver customised orders to each and every store by providing 24 hours turnaround deadlines for different places such as Middle East, Europe and United States along with 48 hours in Latin America and Asia (Johnson, 2016). This frequent shipment also product in keeping inventories fresh and send items at shipment. Such approach helps customers to visit stores on frequent basis and creating as well as incentives for buying them on spot as it will not products and inventory out of stocks. This will help Zara to earn maximum profits at competitive market and improve business for success and growth in appropriate manner. Zara has team approach for matching quick as well as creative design for informing coming sales staff with help of sector as well as regional specialists for operating new fashion ideas (Iandola and et. al., 2016).
Zara focuses to spend less at advertising as well as other marketing promotional activities (Kmiecik and et. al., 2016). This is major issues that might leads to decline in sales and production. In this case, they have developed marketing strategy which involves interplay among limitation in output production as well as maintaining loyalty for customers. For becoming specific, Zara has to drive store visits, encouraging repeat purchases, maintaining repeat visits through creation of perception of more demand and less supply. All the loyal customers make regular visits to Zara as it also produce limited number of fashionable items. Through creation as well as maintenance of perception of more demand as well as limited supply, Zara has compelled their loyal consumer to enhance or raise visits in stores on repeated basis. Zara provide better quality, reducing production capabilities, managing inventories with no excess and closing controlled cycle of production.
Therefore, these all are important strategies issues that has faced by Zara that leads to create problem in growing business at market. This should be improved at competitive market. All these strategies issues should be resolved so that it will leads to attain success and growth of business along with fulfilment of customer requirements.
The theoretical concepts should be used for overcoming strategic issues which are described below:
Zara has not used online media till 2010 after that it has focused on applying or using online strategy to overcome issues or problems (Letaifa, 2015). They have use imitative desire theory for advertising where they have created awareness among customers for buying of products and services (5 Theories of Advertising (Explained with Examples), 2020). Such theory has become boom for others to become powerful, famous and beautiful and so on. It is essential to keep desire alive for all people living at marketplace and fulfils requirements in appropriate manner. Main soul of ritual is that making people to work in communities with help of imaginative projections towards others. This will helps Zara to enhance their sales and revenue of business.
It is the best tool used for supply chain management so that business could attain success and growth at market (Müller, Buliga and Voigt, 2018). This is defined as management approach to long term success by providing customer satisfaction. It is important for all members to participate in improving procedure, services, products and culture in which they are working. Zara focus on TQM to provide high satisfaction to their customers so that they could retain their consumers for long time period in effective manner for positive outcomes. The principles mentioned in TQM should be used by Zara such as producing quality work, improving on continuous basis, encouragement of teamwork, focusing on customer and others. Quality plays an important role for success and growth of business at marketplace (Vu-Bac and et. al., 2016).
It is also theoretical concepts that can be used by Zara for overcoming issues and problems in proper manner so that best outcomes are attained at competitive market (Navarro and et. al., 2016). This is business strategy that is applied by all types of organisation for knowing their internal strengths and weaknesses and external opportunities and threats. In case of Zara it has strengths in terms of fast fashion cycles, strong supply as well as retail network, affordable pricing and weaknesses denotes low presence at fast growing in market, low aggressive of sales and marketing. On other hand, Zara has opportunity in terms of providing better customer experience, expanding business and threats leads to competitive threats, regulatory threats and so on (Schumacher, Erol and Sihn, 2016). This should be improved at competitive market. All these strategies issues should be resolved so that it will leads to attain success and growth of business along with fulfilment of customer requirements.
The strategy models adopted by Zara are fast fashion approach and advertising strategy. In case of fast fashion which is regarded as concept for quick phase where fashion retailers need to capture current fashion trends and moving accordingly so that they could meet need and demand of customers in appropriate manner (Ngai and et. al., 2015). This is adopted by Zara for designing business strategy which revolves around manufacturing as well as designing fashion in quick and inexpensive manner for purchasing trendiest style (5 Theories of Advertising (Explained with Examples), 2020). It is working on principles of fast fashion and Zara has streamlined to designing, manufacturing, distributing process for reducing lead times as well as new fashion trends on quick basis.
On other hand, it has to implement advertising strategy where they have to use other types of social media to create awareness among customers such as YouTube, Instagram, and Twitter and business magazine (Pakes and et. al., 2015). It is highly reputed brand at market and leads to attain maximum goal and objectives. Advertising catch attention of customer and encourage them for buying of products and services. This is possible AIDA where advertising used by Zara need to create attention among people for buying of products and services, and then interest is rise for particular goods and then moves towards desire which is possible through after attention and interest and last is action plan where customer purchase goods.
The report concluded that it is very important to follow proper business strategy so that organisation could survive and sustain at marketplace. Zara is popular brand at marketplace which provides high quality products and services to users. Main aim is to deliver time goods to meet their requirements and survive and sustain at place. Different strategic issues has faced by Zara in terms of online advertising, supply chain, logistics that could be improved through following different theoretical concepts so that positive results are attained. Here, total quality management, desire advertising theory and SWOT analysis has done to know about internal and external business environment. This theory helps in solving issues and problems faced by them in appropriate manner and lead to attain best results. However, interest is rise for particular goods and then moves towards desire which is possible through after attention and interest and last is action plan where customer purchase goods. It has applied fast fashion concept to make quick delivery of products to consumers and using online strategies such as YouTube, twitter, business magazine for applying strategy model in business for best results. This will helps in survival as well as attaining high results to improve business strategy and growth and success of organisation at business place to meet with customer requirements in best manner.
Biljecki, F., Stoter, J., Ledoux, H., Zlatanova, S. and Çöltekin, A., 2015. Applications of 3D city models: State of the art review. ISPRS International Journal of Geo-Information. 4(4). pp.2842-2889.
Cortimiglia, M. N., Ghezzi, A. and Frank, A. G., 2016. Business model innovation and strategy making nexus: evidence from a cross‐industry mixed‐methods study. R&D Management. 46(3). pp.414-432.
Golparvar-Fard, M., Pena-Mora, F. and Savarese, S., 2015. Automated progress monitoring using unordered daily construction photographs and IFC-based building information models. Journal of Computing in Civil Engineering. 29(1). p.04014025.
Gu, S., Xie, Q., Meng, D., Zuo, W., Feng, X. and Zhang, L., 2017. Weighted nuclear norm minimization and its applications to low level vision. International journal of computer vision. 121(2). pp.183-208.
Harrell Jr, F. E., 2015. Regression modeling strategies: with applications to linear models, logistic and ordinal regression, and survival analysis. Springer.
Iandola, F. N., Han, S., Moskewicz, M. W., Ashraf, K., Dally, W. J. and Keutzer, K., 2016. SqueezeNet: AlexNet-level accuracy with 50x fewer parameters and< 0.5 MB model size. arXiv preprint arXiv:1602.07360.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Kmiecik, S., Gront, D., Kolinski, M., Wieteska, L., Dawid, A. E. and Kolinski, A., 2016. Coarse-grained protein models and their applications. Chemical reviews. 116(14). pp.7898-7936.
Letaifa, S. B., 2015. How to strategize smart cities: Revealing the SMART model. Journal of business research. 68(7). pp.1414-1419.
Müller, J. M., Buliga, O. and Voigt, K. I., 2018. Fortune favors the prepared: How SMEs approach business model innovations in Industry 4.0. Technological Forecasting and Social Change. 132. pp.2-17.
Navarro, C., Roca-Riu, M., Furió, S. and Estrada, M., 2016. Designing new models for energy efficiency in urban freight transport for smart cities and its application to the Spanish case. Transportation Research Procedia. 12. pp.314-324.
Ngai, E. W., Moon, K. L. K., Lam, S. S., Chin, E. S. and Tao, S. S., 2015. Social media models, technologies, and applications. Industrial Management & Data Systems.
Pakes, A., Porter, J., Ho, K. and Ishii, J., 2015. Moment inequalities and their application. Econometrica, 83(1), pp.315-334.
Schumacher, A., Erol, S. and Sihn, W., 2016. A maturity model for assessing Industry 4.0 readiness and maturity of manufacturing enterprises. Procedia Cirp. 52(1). pp.161-166.
Vu-Bac, N., Lahmer, T., Zhuang, X., Nguyen-Thoi, T. and Rabczuk, T., 2016. A software framework for probabilistic sensitivity analysis for computationally expensive models. Advances in Engineering Software, 100, pp.19-31.
5 Theories of Advertising (Explained with Examples). 2020. [Online]. Available at: < https://studiousguy.com/5-theories-of-advertising-explained-with-examples/>.
The Business Strategy of Zara. 2020. [Online]. Available at: < https://www.profolus.com/topics/the-business-strategy-of-zara/>.
Case study assignment help, Case study analysis assignment help, Case study business assignment help, Online case study assignment, Case study writing services help, Case study homework help, Case study report writing help, Professional case study writers assignment help, Case study marketing assignment help, Nursing case study assignment help