Zara Case Study

ZARA Case Study Solution

1. Introduction

Zara, a well known reputed fashion designing and manufacturing company has been

declared most efficient and market responding enterprise in UK‟s fashion industry. Mr. Amancio

Ortega, the creator and initial organizer of Inditex is appreciated for his strategic decisions as

well as his market competition winning strategies have been accepted and followed by his

competitors now.

Zara, one of the brands of Inditex, founded in 1975, is the most renowned and famous

fashion icon. It is not only generating the highest profit margins for organization but also is the

most famous and recognized by customers in market (Murphy, 2008). The majority of captured

market by Inditex is for Zara. An estimated share of Zara in total revenue of group is 80%

(Brand Watch Zara, 2004, p.2). It‟s a Spanish based company, and has successfully proven itself

as a leading company which is successful in positively providing service to their customers. It is

the fashion icon which is serving industry since decades and still its customers are so satisfied

that it is going to be even better in future. Management has taken decisions that were

entrepreneurial at that time and still most of the companies in industry are not deciding on same

fronts. Such decisions that lead to success are possible after a deep thoughtful process that

requires environmental analysis (both at macro and micro level), external and internal analysis

and a rational logical decision making process provides plans and objectives. Zara has already

reached its objectives and is a leading company and now further expansion of company is under

consideration (Sull and Turconi, 2008). In this document, we are going to analyze the market

environment and making some achievable plans for future. This process would be critical and

crucial because it leads to decisions that are basis for future actions and these critical decisions

for future flow of activities will decide...