Submitted by: - Ilham EL MHADDER - Seth Fearon - Quanpu Li - Saumen Adhikary

ZARA ba k!round
"a# $ounded by Aman io %rte!a In 1975 Fir#t #tore opened in La &oruna' Spain in 1985 Indite( )a# $ormed a# a holdin! ompany )hi h ZARA i# it# lar!e#t hain o$ retail #tore#* +he $ir#t #tore out#ide Spain )a# opened in 1988 in ,ortu!al* -y the end o$ 1990' Zara had operation# in ./ itie# o0er Spain and 1 other# internationally*

Indu#try o0er0ie)
The global apparel market is : - consumer-driven industry. - globalization - new technologies., - changing behaviour - competition Clothing industry satisfies the need to : 2eep )armth Di#play per#onality Sati#$y the dre##in! ode o$ ertain o a#ion#

&on#umer analy#i#
Definition -randed #tyli#h lothe# tar!eted $or youn! on#umer# 345-156 )ith medium to lo) bud!et* Customer Profiles - up to date ' $a#hionable' trendy and uni7ue - a$$ordable pri e#* - man' )oman' teena!er and hildren* - in$luen ed and mo0ed by European $a#hion* - belon! to any #o ial #trata and demo!raphi #e!ment

&ompetitor analy#i#

Zaras 4 key competitive advantages: Short lead time Hi!h turno0er rate Many de#i!n# Fre7uent 0i#it#

S"%+ analy#i#
8p to date de#i!n# at attra ti0e pri e#* Fa#t' in#pired and re#pon#i0e de#i!n team# Qui k #upply hain "orld)ide kno)n: E(pand to ne) di$$erent ountrie# Fa#t !ro)in! demand e#pe ially A#ia*

%ther #tore# opy Zara idea# +he in rea#e o$ it# o)n labor o#t#

opportunitie# )eakne##e#
&ompetiti0e market pla e' #ame tar!et market a# Zara

#tren!th#

threat#

,%LI+I&AL

E&%9%MI&

i*

9e) te(tile poli y

i*:9, per apita <5.=> ii* :D, !ro)th o$ 4>*?@

+E&H9%L%:I&AL ZARA i* ii* &hina i# a kno)n I+ ba#e ountry Finan ial bene$it to Aara due to online #hoppin!*

ii* Stable ommuni#t ountry

S%&IAL

i* 9e) middle la## )ith !ro)in! pur ha#e po)er ii* &ultural #hi$t in urban area#
LE:AL

E9;IR%ME9+AL Free a e## to natural re#our e# $or te(tile lothin!*

i*Labour la)# ii* Quality ontrol ailure by

Supplier# ha0e a!reed to #upply material )ithin 5 day# to ZARAC# $a ility in Spain' they are u#in! mainly tra k#

procurement

technology
ZARA ha# in0e#ted hea0ily on I+ plat$orm#* A# it doe#nBt de#i!n on it# o)n e0ery time*

Human resources management

ZARA re ruit# # hool lea0er# or $re#h under!raduate# $re#h' ener!eti indi0idual# $ree $rom $amily ommitment#

Firm infrastructure
$a tory i# lo ated in La oruna' Spain )hi h ha#: the heape#t labor in the ountry* $le(ibility to pu#h ne) de#i!n to the $inal #ellin! point $a#t*

Zara re ei0e the arti le# $rom it# o)n $a torie# 3D>@6 or $rom out#ide #upplier# t)i e a )eek* logistics

Inbound

;alue hain analy#i#

AtomiAed pro e## to reate 7ui kly* Di!ital inter onne ti0e )ork

Operations

&loth# mo0e# throu!h ZaraC# di#tribution enter to rea h #tore# )ithin E. hour# Outbound logistics

Zara doe# almo#t no ad0erti#in!' a# itB# #tore# look# e0ery )eek ne)* Mar eting and sales

Store# team# are inter onne ti0ity inte!er in $indin! )hat u#tomer# are lookin! $or and #ati#$yin! their ta#te#* ser!ices

,orter 5 $or e# analy#i#

Rivalry
Zara uni7uene## Ftrendy produ t at hard to beat pri eB allo) it to pro$it $rom the u#tomer# pur ha#e po)er ea#ily*

Threat of entry

the !lobal $a#t $a#hion indu#try need a hu!e initial in0e#tment' a ri h re ord o$ in$ormation about u#tomer# and an ability to de#i!n $a#t ne) produ t to !et in*

Threat of substitutes

u#tomer# pre$eren e $or the lo) o#t trendy produ t# are likely to #)it h i$ there de#ire# are not #ati#$ied* Zara i# di#tin t $rom the other# by the on#tant inno0ati0e and reati0e de#i!n#'

Power of buyers

Customers can be flexible in choosing products across brands, but Zara constant infusion of new products, buyers are more likely to be down to its stores. Zara make !" of the fabric in its plant, it is less dependent on suppliers and can respond more #uickly to the changes. $oreo%er, raw material and sufficient and widely offered.

Power of suppliers

ZARA a ro## the )ord

ZARA in &hina
Indite( ha# #tron! potential to ontinue !ro)in! in a pro$itable )ay o0er the omin! year# and' in thi# re!ard' our priority i# to focus on e"pansion in Europe and #sia*

/>>= Indite( Annual Report

'ime Feb />>D Feb />>? Han />>= End o$ />>= End o$ />4> "ith />41

$tore(s ) in *hina 4 41 /1 EE D5 4E>

%bGe ti0e: ontribute to :rand openin! day the #u#tainable e7ual to Fir#t #tore 800 000 %M& de0elopment o$ #o iety and opened in that o$ the $hanghai en0ironment )ith )hi h Zara intera t#

Di$$erentiation
Appro0al o$ de#i!n#: the &hine#e ta#te need to be analyAed* S ar ity: !ain a di$$erent #e!ment o$ u#tomer# that enGoy e- ommer ial pri e#* Manu$a turin!: produ tion dependin! o$ the re!ion tenden y* #tore# arri0al#: di$$erent item# in di$$erent #tore# )ill rai#e the #tore# $re7uentation' #urpri#e $a t

&ur0e 0alue
- ,ubli ity

rai#e

- E- ommer e - ,ri e attra ti0ene## I u#tomer# #ati#$a tory - Inno0ate on male# and hildren arti le# - Make e(tra #iAe# $or #kinny and $ull body #hape#

reate

- Attra t a ne) #e!ment#:' e( J ur0yK and J#kinnyK - &hannel# o$ di#tribution in ea h ontinent

redu e eliminat e

- Redu e the number made o$ ea h arti le#

- +he one #pe ial ut $or the per$e t #hape and on#ider e0ery body #hape