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9-14. How Is Strategic Management Illustrated by This Case Story?strategic Management Involves All Basic

Zara's success is due to both internal and external factors. Externally, Zara has a strong brand image among consumers. Internally, Zara's ability to get designs from concept to stores in just two weeks is highly efficient. This allows employees to closely monitor sales and quickly adjust production accordingly. Zara is pursuing a competitive advantage of lower prices through faster production and flexibility in bringing fashion to market quickly over competitors. Moving online expands Zara's customer reach and opportunities for growth.

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104 views1 page

9-14. How Is Strategic Management Illustrated by This Case Story?strategic Management Involves All Basic

Zara's success is due to both internal and external factors. Externally, Zara has a strong brand image among consumers. Internally, Zara's ability to get designs from concept to stores in just two weeks is highly efficient. This allows employees to closely monitor sales and quickly adjust production accordingly. Zara is pursuing a competitive advantage of lower prices through faster production and flexibility in bringing fashion to market quickly over competitors. Moving online expands Zara's customer reach and opportunities for growth.

Uploaded by

yumiko2809
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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9-14. How is strategic management illustrated by this case story?

Strategic management involves all basic


management functions like planning, organizing,leading, controlling, and all of these areas are illustrated by this
case story. Strategic managementis illustrated in this case story when Mr. Ortega opened his first Zara clothing
store and the business model of the company was to “sell high-fashion look-alikes to price-conscious
Europeans.Strategic management is illustrated in this case story when Zara clothing store planned to do
“fastfashion” which means getting designs to customers quickly. Strategic management is when Zara’s
employees look at the computers to scrutinize sales at every store. In this way they can see whatis being sold at
every store and they are able to produce more of the popular items. Strategicmanagement was illustrated by this
case when Zara produced most of its clothing close to homewhere they are being sold.

9-15. How might SWOT analysis be helpful to Inditex executives? To Zara store managers?

Zara is owned by the Spanish fashion retail group Inditex SA. They recognizes that successin the fashion world
is based on a simple rule which is getting products to market quickly whichinvolves a clear and focused
understanding of fashion, the ability to adapt quickly to trends,technology, and their market. SWOT analysis is
helpful to all businesses, Inditex executives, and Zara store managers because it is an analysis of the company’s
strengths, weaknesses,opportunities and treats. By doing a SWOT analysis the Inditex executives can study
theopportunities for the company to grow and expand. They can also study about the threats to thecompany like
negative trends in the external environment. An internal analysis strengths of Zarais that stores are stocked with
new designs twice a week which is very quickly because clothes are shipped directly to the stores from the factor
approximately two week as they get a new designfrom drawing board to store floor. The SWOT analysis can be
helpful Inditex executives can analysis from an internal analysis the strength of the organization which is the fast
turnaroundsanalysis from an internal analysis the strength of the organization which is the fast turnaroundsand
weaknesses.and weaknesses.

9-16. What competitive advantage do you think Zara is pursuing? How does it exploit competitive
advantage?
The competitive advantage Zara is pursuing is lower prices than his competitors with better speed and flexibility
in getting the product to market. This is an advantage over gained over competitors by offering consumers
greater value, by means of lower prices and cutting age fashion.

9-17. Do you think Zara’s success is due to external or internal factors or both?
The success of Zara is due to the both, internal and external factors. The important external factors which have
helped Zara to grow are a strong external brand image that Zara has among the cons. And in the internal factors
the staff’s ability to be so efficient that they can go from designcons. And in the internal factors the staff’s ability to
be so efficient that they can go from design to storefront in only two weeks is huge. Zara’s employees are able to
scrutinize sales and get almost instant feedback regarding which items are and aren’t selling, and adjust
accordingly.

9-18. What strategic implications does Zara’s move into online retailing have? (Hint: think in terms of
resources and capabilities).
A company with customer-focused strategic objectives will have a corporate strategy that impacts its marketing.
When a corporation can envision and project the long-term profit implications of a customer, it can modify its
strategy to capture as much of that customer's lifetime value as possible. Projections are growth quadrupling in
very large part to the addition of the online marketplace
.

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