Zara's Global Strategy History Current Status

1. Submitted By:
Akriti Mahajan (04MBAIB14), Priya Pandita (14MBAIB14)
Samarth Gupta (18MBAIB14), Shantanu S Jamwal (19MBAIB14)
Sushain Mahajan (22MBAIB14)
International Centre for Cross
Cultural Research & Human
Resource Management

3. Contents
 About Zara
 Mission, Vision & Long Term Objectives
 History of Zara
 Zara’s Brand
 Zara’s Business Model
 Zara’s Product Development Vs Competitors
 Strategies in Action
 Integrated Market Communication Strategy
 SWOT Analysis

4. Zara España, S.A.
Industry Retail
Founded Arteixo, Galicia (Spain)
(24 May 1974; 41 years ago)
Founder Amancio Ortega
Rosalía Mera
Headquarters Arteixo, Spain
Number of locations 2,000+ stores
[1]
Area served Worldwide
Key people Óscar Pérez Marcote, Director-
general
Products Clothing
Revenue €11.594 billion (2014)
[2]
Parent Inditex
Divisions •Zara Diseño, S.L.
•Zara Logística, S.A
Website zara.com
About

5. What is Zara?
 Zara is one of the largest international fashion
companies. It belongs to Inditex, one of the world’s
largest distribution groups.
 The customer is at the heart of our unique business
model, which includes design, production, distribution
and sales through our extensive retail network.
 Zara welcomes shoppers in 86 countries to its
network of 2000+ stores in upscale locations in the
world's largest cities.
 Zara has continually maintain its mission to provide
fast and affordable fashionable items.
 Zara's approach to design is closely linked to their
customers.

6. Mission
 Through Zara’s business model, we aim to contribute
to the sustainable development of society and that of
the environment with which we interact. The
company's commitment to the environment is
included in Inditex Group’s Corporate Responsibility
Statement.

7. Vision
“ZARA is committed to satisfying the desires of our
customers. As a result we pledge to continuously
innovate our business to improve your
experience. We promise to provide new designs
made from quality materials that are affordable”

8. Long-term Objectives
 Save energy, the eco-friendly store
They are implementing an eco-friendly management model in their shops in
order to reduce energy consumption by 20%, introducing sustainability and
efficiency criteria. This management model sets out measures to be applied
to all processes, including the design of the shop itself, the lighting, heating
and cooling systems and the possibility of recycling furniture and
decoration.
 Produce less waste and recycle
Zara recycles their hangers and alarms, which are picked up from their
shops and processed into other plastic elements. This is an example of their
waste management policy. Millions of hangers and alarms are processed
each year and both the cardboard and plastic used for packaging are also
recycled.
 Use ecological fabrics, organic cotton
Zara supports organic farming and makes some of its garments out of
organic cotton (100% cotton, completely free of pesticides, chemicals and
bleach). They have specific labels and are easy to spot in the shops.

9.  Use biodiesel fuel
Zara’s fleet of lorries, which transport more than 200 million items of
clothing a year, use 5% biodiesel fuel. This allows them to reduce their CO2
emissions by 500 tons.
 Their commitment extends to all their staff,
increasing awareness among the team members
The Company holds In-company awareness campaigns and specific
multimedia-based training programs to educate their staff in sustainable
practices, such as limiting energy consumption, using sustainable transport
and modifying behavior patterns.
Long-term Objectives
Trucks to ship Inditex’s products
from the logistics centers daily
Natural Gas
generators at the
heart of Inditex’s
plant and
distribution center
in Tordera, Spain

10. History
 Amancio Ortega opened the first Zara store in 1975 in
a central street in downtown A Coruña, Galicia, Spain.
 The first store featured low-priced lookalike products
of popular, higher-end clothing fashions. The store
proved to be a success, and Ortega began opening
more Zara stores throughout Spain.
 During the 1980s, Ortega started changing the design,
manufacturing, and distribution process to reduce
lead times and react to new trends in a quicker way, in
what he called "instant fashions".

11. History
 In 1980, the company started its international expansion
through Porto, Portugal. This international expansion was
increased in the 1990s, with Mexico in 1992.
 Ortega has continued to grow creating brands such as Pull
& Bear, Bershka and Oysho. He has acquired groups like
Massimo Dutti and Stradivarius. Today Inditex is the
biggest fashion group in the world.

12. Zara brands success
Zara is one of the most well known brands in the world and
is also one of the largest international fashion companies.
They are the third largest brand in the garment industry.

13. Zara brand Wheel

14. ZARA’s Business Model

15. Nucleus to Zara’s Business Model

16. STORE

17. Design & Production

18. Logistics

19. Teams

20. Zara’s Performance

23. Strategies in Action
 Integration Strategies
Forward Integration, high integration between the
headquarters and all branches across the globe, to standardize
the overall business performance, Zara also performs some
horizontal integration through its acquisition (acquisition of
Massimo Dutti, Stradivarius)
 Intensive Strategies
Market Development strategy in which they are
entering new market, China, India, and Indonesia,
Market Penetration strategy, especially in European
and American markets by improving its online store
and increase customer service

24.  Diversification Strategies
To complete its product lines Zara sells accessories to
complement their main product which is apparel, unrelated
diversification in the form of Zara Home
 Defensive Strategies
Zara has no defensive strategy because the company is in
good condition, not in any kind of jeopardy. Therefore, it does
not need any defensive strategy at the moment.
Strategies in Action
Zara Home’s first store in
Indonesia, located in Plaza
Indonesia on 2nd Floor

39. Strengths
1.Cost leadership strategy
2.Efficient distribution
3.Information technology
4.Fast delivery of new products
,and trends
Weaknesses
1.Centralized distribution system
2.Doesn't spend much money
on advertising
3.Zara only has one
manufacturing and 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
huge no of stores in Europe will
dent in revenues.
SWOT
analysis

40. THANK YOU FOR YOUR ATTENTION