Strategic Management and Strategic Competitiveness Choose one (1) public corporation in an industry with which you are familiar. Research the company on its own Website, the public filings on the...

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Introduction
ZARA is a Spanish clothing and retailer accessory brand ZARA was founded in the year 1975. It
is known as one of those chain stores which have a flagship. There are also various sub brands of
the ZARA such as Pull and Bear, Uterque, Bershka. ZARA claims that in order to develop a new
product, it only needs a time of two weeks and delivers it to the stores. The industry average in
the same regard is of six months. In addition to this, the Spanish clothing brand ZARA launches
approximately 9000 designs every year. There is a resistance in the organization of ZARA
towards following the normal trend which prevails in the market of selling the fashion which
involves production which is fast to the countries where the cost is low. The most unusual
strategy from this sense of ZARA can be said to be the zero advertising policy. Instead of
advertising, the organization remains consistent in investing a revenue percentage in order to
open new stores and increase on its chain networks.
Impact of globalization and technology

ZARA establishes a price which is lower at cost against its competitor of the same kind of
product. In this sense, the integration of ZARA is vertical controlling all the products by
designing a decision from the view of point of the determined sales. With this strategy ZARA is
able to keep the prices of the products as low. Popular fashions are closely determined by the
designers in order to celebrate the style and the most popular designs are seen on the runways
worn by models. From the above analysis, we can say that ZARA is following a strategy of
integrated leadership of cost which is also known as the strategy of differentiation. This is
evident from the offer which ZARA makes to its customers by giving them fashion of their

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desire at a cost which is quiet affordable for them. In the implementation of this particular
strategy, it is required by ZARA to maintain designers which are sophisticated and can manage
the cost by means of effectiveness fitting well into the capability possessed by ZARA. The
designs which ZARA processes are at a rapid level suggesting an organization which is
completely flexible adapting easily to the changes that occur in the market or even among the
competitors.
Development of Technology: The investment that ZARA has put in, into IT is huge. This is
because ZARA needs technology to always be in track with the high designers and copy their
designs. Every day the information is downloaded and sketches through the use of technology.
Macro Environment Analysis
Michael Porters Five Force Analysis – ZARA
Rivalry among existing competitors
The nucleus of the model of five forces is the Rivalry among existing competitors. When this is...