1. Anna Sow
Joon Park
Olesya Batrawa
Shahida Robab
Harshana Godamanna

2. There are three steps to being a
successful fashion company
1. Make clothes that people want to wear
2. Sell enough clothes for more than you
made them
3. Do it again, and again, and again

3. Introduction
• Zara is a game changing clothing giant
• Practices fast fashion- trends moves
• Supply chain has undergone tremendous
changes
• Mission to provide fast, affordable, and
fashionable items
• Technology enabled strategy
• No advertising, rarely holds sales
• Founder of Zara is the world’s richest
fashion executive

4. Mission and goals
• We save energy
• The eco-friendly shop
• We produce less waste, and recycle
• Our commitment extends to all our staff
• An environmentally aware team

5. Zara Customer characteristics
• Full shape body women
• People ages 18-40 with mid range income
• People interested in fashion trends
• People who sought the benefit of clothing

6. How dynamic is the industry
• Zara is in a fast changing fashion industry
• Manufactures fashion-sensitive products
internally
• Zara re-invents to maintain the ever
changing industry
• Designers pay close attention to customer
feedback

7. Zara’s industry life cycle

8. Zara as a global company
• Europe
• Asia-pacific
• North America
• South America
• Central America
• Africa

9. Zara’s Distinctive Competencies
• Compliment the full body shape
• Product symbolism
• Fresh look with colors and materials
• The Zara label aims at customer loyalty

10. Zara’s Distinctive Competencies
• Above-the-line just print advertising
• Below-the-line they use internet , events, PR
and brand communications along with media
cooperation
• Communication goals of Zara are to inform
the consumer about new products

11. Zara stores around the world

12. Zara stores around the world

13. Zara stores around the world

14. Barriers to Imitate
• Quick response system- composed of human
resources and information technology
• Accelerated IT software for the transfer or
design and communication
• High company attributes- means beneficial
employee package
• Maintains secrecy of computer network
linking System
• Vertically integrated
Do not outsource!

15. Adaptation to changing industry
• Rising production costs
• Increasing wages
• Above factors caused Zara to employ cost
leadership strategy, which is difficult to pursue in
in rapidly-evolving industry.

16. Building blocks of Competitive Advantage
• Efficiency
– Flat structure
• Quality
– Satisfaction from customer needs

17. Building blocks of Competitive Advantage
• Innovation
– 18,000 new product designs a year
• Responsiveness
– Prototype and Model Quickly
– Fast feedback

18. Porters Five Force Model
• Rivalry : High
– High exit barrier
• Threat of new entry : High
– High fixed cost
– Long sales cycle
• Supplier power : Low
– Vertical intergradient

19. Porters Five Force Model
• Threat of substitutes : Moderate
– H&M, GAP, Foever21
– Low buyers’ switching costs
– Substantial customer loyalty
• Buyer power : Moderate
– Trendy Fashion
– Price

20. SWOT analysis
Strengths
 Global market presence
 Vertically integrated
 Latest fashion trends
Weaknesses
 Low on store inventory
 Eurocentric model
 Simple products
Opportunities
 Growth in international
market
 Diverse cultural area
Threats
 Many competitors
 Low cost in switching

21. Zara didn't have to invent a brand
new product to become the
world's biggest fashion retailer, it
just had to invent a new process
Conclusion

22. Thank You