Zara and H&M

4540 Words19 Pages

Date: 24/10 2008

Table of contents

Introduction p. 3
Company presentation p. 3
Generic strategies p. 3 & 4
Growth strategies p. 4 & 5
Pest analysis p. 5 & 6
Value chain p. 6 & 7
SWOT analysis p. 7 & 8
Price / quality Grid p. 8
Company presentation p. 9
Generic strategies p. 9
Growth strategies p. 10
PEST analysis p. 10 & 11
Value chain p. 11 & 12
SWOT analysis p. 12
Zara and H&M
Comparison of the 4 P’s p. 13
Porters 5 forces p. 14
Comparison of the value chain p. 15
Group reflection Enclosed

* Introduction
We have been given an assignment, where we have been divided into groups. In our group
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The two strategies that Zara in our opinion uses is, market penetration and product development. If we have focus on their clothing line we believe that they have penetrated the market very much, naturally because they use the same products, clothing, and also because they aim for their existing target group. If your growth strategy is market penetration it would be obvious choice to promote your products, but that is not what Zara is doing. They are relaying on good store locations and loyal customers who will talk in nice words about Zara to their friends and family.
As mentioned we also believe that Zara uses another strategy, namely product development. We base this on the fact that they have expanded their product line. Now they don’t just sell clothing, now customers also have the opportunity to buy accessories, cosmetics and furniture in Zara stores. Even though Zara is introducing new products, they still relay on their existing target group.
Inditex has expanded very heavily, and to put this in perspective we have some facts that show this. In 1995 they had 500 stores worldwide, and in 2004, nine years later they had 2.250 stores. * PEST analysis
The PEST analysis is a marketing tool in the macro environment who tells about the political, environmental, socio- cultural and technological forces that may have an influence on your
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