Zara Company Analysis Essay Example | Topics and Well Written Essays - 4250 words

Zara Company analytic thinking - Essay ExampleThis marketing piece presents a set for recommendations for the fashion retailer, Zara. These recommendations are based on the analytic thinking of external and internal environment. The analysis of the external environment relies on theories such(prenominal) as the stamp Analysis and Porters tax Chain Analysis. The analysis of the internal environment relies on the analysis of the company using Resource/ Capabilities Analysis and Value Chain Analysis. Zara is a fashion retailer owned and operated by the Spanish company, Indetix Group. This fashion retailer has introduced a different strategy within the fashion market that goes against the existing strategies of the fashion industry (Anon, nd.). patronage this, or rather on account of this, the company has managed to record profitable growth since its inception. However, in sanctify to pursue further growth, it is necessary to analyze the current strategy. ANALYSIS OF EXTERNAL ENVIR ONMENT PESTEL AnalysisPESTLE Analysis is a widely used analysis to understand the external environment of the company. It is an acronym for Political, Economic, Social, Technological, Environmental and licit factors that have an impact on the overall operations of the organization (Henry, 2008). Political FactorsSince companies operate within a certain geographic boundary or boundaries, the government has an impact on the company. It impacts through the laws and restrictions placed on the companies. Since Zara operates mainly in Spain and the UK, which falls within the EU countries therefore the political landscape of this area should be understood. The EU is beneficial for the company as it has made the accurate region work as a local market. This allows the company to get fair advantage in the entire EU market. Zara is also run outside Spain and EU markets and in markets such as USA, Dubai and Singapore. In this regard, the company needs to ensure that such countries have frien dly relations with the national base of the company which is Spain. Also such countries should have a politically stable government so that the company continues to enjoy friendly toll. Economic Factors In terms of the economic factors, companies all around the world have been seriously hit with the financial crisis that struck the entire world in 2009. This has hampered the buying power on the consumers and most