Strategic issues of Zara Essay Example | Topics and Well Written Essays - 3250 words

strategical issues of Zara - Essay ExampleIt is interesting to mention that the basic retailing theme that is fol down(p)ed by the flagship brand is highly unique in nature. The brand of Zara largely focuses on the process of providing fashionable retail products of average tone of voice at highly war-ridden prices to the consumers of the world (Morris, 2013). It needs to be mentioned that the brand of Zara is largely present in various markets around the world. Also, the company has reach trem eradicateously high levels of efficiencies in regards to maintaining the distribution channels as well as managing the logistics and supply chain. It can be said that the efficiency of the supply chain attained by the flagship brand Zara helps in attaining significant advantages related to shorter product life rhythm method, shorter turn around and reduced magazine for production. Thus, it can be said that the logistic and supply chain efficiency can be inured as a pillar of strong point and significant advantage for the company. ... Detailed analysis of the competitive forces It can be highlighted that the best way to undertake an analysis of the competitive forces that ar affecting the billet prospects of the retail company is to conduct an analysis of hall porters competitive forces. It needs to be mentioned that Porters five forces strategy talks about the competitive issues that arises from the multiple factors like bargaining ply of suppliers, bargaining power of consumers, power of substitutes, threat of new entrants as well as inter immobile rivalry (HBR, 2008, p. 4). Source HBR, 2008 p. 4 Now matching Porters five forces competitive strategy with regards to organizational issues of Zara, it can be said that several challenges and cases can be highlighted at the same time. talking in regards to the bargaining power of the suppliers, it needs to be highlighted that more than 50% of the retail merchandise of Zara are produced in an in house fashion. It i s important to highlight that because of this particular practice, the globally acclaimed retail organization has demonstrable the advantage in regards to gaining momentum in various complex task based process, lower cycle time as well as minimization of error. However, talking in more details in regards to manufacturing practices, it can be said that the various processes involved in the manufacturing process of the firms end products are often outsourced to the network of local cooperatives, who work with the company only on the basis of immense term good will. Hence, in this particular case, the negotiation power of the suppliers and local manufacturers are pretty low as compared to that of the organization.