Zara Fast Fashion: Executive Summary

5256 WordsNov 27, 200822 Pages
Hong Kong Baptist University Semester 1, 2007-2008 BUS 3200 Strategic Management Case Assignment Zara: Fast Fashion NG Pui Yan, Ivy 05003539 CHAN Chi Cheuk, Sunny 05006856 CHUI Yuen Shan, Cora 05017041 LOK Ka Pik, Capi 06004911 GUENTHNER Patrick 07501153 Executive summary 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. Marco-environment Macro-environments are changing in different aspects which influence Zara’s…show more content…
This can be seen from Fig 3 that the export and import during 2005 and 2006 have significantly increased and it is foreseen that the future global trend would be increasing. Also, in order to lower the production costs, lots of international companies will transfer part of work in some countries with lower labor and material costs. This kind of out-sourcing activity enhances the global cooperation as well. Porter five forces model: | |Force | | |1 |2 |3 |4 |5 | |Rivalry among competitors | | |* |[pic] | | |Threat of Substitutes | | | | | * | |Barriers to Entry | | | |* | | |Power of Suppliers | | | | |* | |Power of Buyers | | | | | * | | |(Strong) | | |

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