Zara Five Forces Analysis

5583 WordsApr 15, 201323 Pages
The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Andres Mazaira  University of Vigo, Oureuse, Spain E. Gonzalez  University of Vigo, Oureuse, Spain Ruth Avendano Ä University of Vigo, Oureuse, Spain Keywords Market orientation, Competitive advantage, Clothing industry, Organizational culture Abstract This paper has been developed as a part of research seeking to verify the effects of organisational culture in general, and market orientation in particular, on the behaviour and results of managerial organisations. The difference with other existing work on the same subject is that this work uses the case method to bring managerial reality into…show more content…
Turnover in the year 2000 was slightly over 435,000 million pesetas. Profits were over 43,000 million pesetas. Tables II and III show information on each of the chains. The world fashion market has changed considerably over the past few decades. Fashion products, which used to be an elite consumption product, are now a mass consumption market ± embodying what has been called ``the democratisation process of fashion ' '. Fashion products are now bought by all segments of society, helped by lower average prices, which have brought about a The current issue and full text archive of this journal is available at http://www.emeraldinsight.com/0263-4503.htm [ 220 ] Andre Mazaira, E. Gonza Âs Âlez and Ruth Avendano Ä The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Marketing Intelligence & Planning 21/4 [2003] 220-229 broadening of the target by including a growing number of consumers in the market. Consumer tastes over the past few years have been veering away towards extremes. Stores offering latest fashions and stores offering lower priced clothing have taken market share from general fashion outlets, such as department stores, which were the main players up to the mid-1990s. Today 's clothing and accessories industry is highly competitive, and increased
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