Business Plan Evaluation Essay

What is the Zara “business model”? How is it different from the business model of other large clothing retailers? What weaknesses, if any, do you see within this business model? Is it scalable?

The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence and judgment of common employees who enjoy a great deal of autonomy. Second, its marketing, merchandising and advertising strategy. Zara does not spend on virtually advertising, while it spends heavily on stores, and no selling online because of

|00:00:03.0 >> |PANKAJ GHEMAWAT: What are the core features of the ZARA business model and when were they |

Write a 750 word research proposal, outlining the research approach you will use for the Strategic Analysis, due in Week Six. Include the following: How you intend to confirm the organizational vision, mission, and values statements Sources and tools you expect to use to perform an external environmental analysis Sources, models, instruments or tools you expect to use to perform an internal environmental analysis

Zara’s business model can be broken down into three basic components: concept, capabilities, and value

Quick response of Zara leads it to be successful in the fashion clothing industry. Zara adopts international strategy for its operation. With vertical integration, it benefits Zara in cost aspect, however, it involves some risks. Due to our anaylysis on Zara’s operations, some of the recommendations are made to facilitate its further improvements.

In order to determine the best business to start, both businesses need to be subjected to some analysis. A business plan is the tool by which the business' merits can be evaluated it is a written description of the business' future Entrepreneur, [1]. This decision is between two different business ideas, and the business plans will test the validity of these two ideas and help to make a decision with respect to the investment decision. The first business idea is a bar called Stock Market. The concept is that the price of beer will fluctuate with demand. If people are buying IPA, then the price of IPA will increase, and the price of other beers will decline. This is an idea that has been tried a few times in other places around the world to varying degree of success. The bar will be located somewhere in the East Bay. The other option is a store for refurbished electronics called ReTech. A business plan will be provided for each option and then the two options evaluated.

From the SWOT analysis, PEST and PESTLE analysis this report gives hints about what Zara is able to do in order to improve its business.

Zara is an international retailer that is continuously growing in popularity due to the store’s trend-sensitive and affordable styles. Inditex, Zara’s distribution group, is one of Spain’s greatest successes in that they have dominated the global market. Their unique business model and marketing tactics have a lot to do with this company’s worldwide success. This retailer exhibits a creative and eco-friendly business plan that integrates design, just-in-time production, marketing and sales. With a vertically integrated supply chain system, Zara controls product design, development, manufacturing, selling and distribution to retailers, product service and advertising.

Vertical integration, a distinctive feature of Zara’s business model, has allowed the company to successfully develop a strong merchandising strategy. This strategy has led Zara to create a climate of scarcity and opportunity as well as a fast-fashion system. However, Zara’s strategy creates some weaknesses. Their vertical integration has more advantages than drawbacks but it is important to recognize its limitations. Vertical integration often leads to the inability to acquire economies of scale, which means Zara cannot gain the advantages of producing large quantities of goods for a discounted rate. Higher costs are then incurred for the Inditex

|00:00:03.0 >> |PANKAJ GHEMAWAT: What are the core features of the ZARA business model and when were they |

Zara brand is an attractive case study for many fashion brands around the world for understanding Zara’s business model and their wining factors. One of the Zara’s strategies that make difference between Zara and other competitors is policy of zero advertising. The company tries to invest their capital in opening new branches. As result of this policy Zara is known as fashion imitator trade group and low price fashion products. The range of Zara’s products is wide such as: men\women’s clothing, Zara kids, and shoes, lower and upper garment in various sizes. Designing of Zara’s products are made 50% in Spain, 24% in African and Asian and 26% in the rest of

At the heart of Zara 's success is a vertically integrated business model spanning design, just-in-time production, marketing and sales. The key to this model is the ability to adapt the offer to customers desires in the shortest time possible. For Zara , time is the main factor to be considered, above and beyond production cost. The group believed that vertical integration gave it more flexibility than its rivals to respond to fickle fashion trends. With the European markets becoming saturated, Zara had been looking at stretching its product line and furthering its global expansion.

Day by day the competition in all kinds of industries is increasing. So all the firms are now facing huge competition as people have so many alternatives now. Finally preparing this report and tried to learn a suitable marketing strategy indeed for ZARA.

The firm formulated a unique value proposition: Zara combines moderate prices with the ability to offer new fashion styles faster than its competitors. To do so, the company developed a business model which includes the following operation goals: