Zara vs. Uniqlo Essay

6859 Words28 Pages
Clothing Industry ZARA vs. UNIQLO Team J: Bingbing Ge Lei Du Sophia Maduka Salman Syed Azim Thanadol Boonyaviwat Tanya Goel 1 Index Content Page Number Executive Summary………………………………………………………………... 4 Introduction………………………………………………………………………… 5 Industry Analysis……………………………………………………………………5 Competitive Environment……………………………………………….5 Strategic Groups………………………………………………………...6 ZARA……………………………………………………………………………….7 Critical Success Factors…………………………………………………7 Strategic Issue: What should ZARA do next?......................................... 9 Strategic Options for ZARA and Inditex………………………………. 10…show more content…
However, this expansion strategy has resulted as a failure, which implies UNIQLO should focus on its current market, expand into a new segment either by launching a new brand and business model or taking full advantage of its current unique R&D capability. 4 Introduction The fashion industry is one of the most complicated industries in the world. It is the largest employer of all the creative industries and directly employs 816,000 people across a wide range of jobs and professions from fashion designers to fashion retailers. In the UK economy, it is estimated that the fashion industry contributes a direct value worth 21 billion pounds (Casciato, 2010). The world of fashion is filled with competitors, who are struggling for public awareness. ZARA and UNIQLO are two companies operating in this market and spare no effort to survive and prosper in this industry. This report will start by providing an industry analysis, and then it will discuss ZARA’s strategy, strategic issues and its strategic options. Finally, it will analyze the critical success factors of UNIQLO, the reason why it failed to compete with ZARA and its strategic options. Industry analysis Competitive Environment The Clothing industry is a very competitive in nature and due to this several sub segments have been created in the market and coupled with the number of players involved, in addition to the seasonal nature of the

More about Zara vs. Uniqlo Essay

Get Access