Zara

Strategic Management Assignment
Haagse Hogeschool
Sergio Lax Vega
08043493 / sergiogestionpubli@hotmail.com
Strategic Management Assignment
STRATEGIC PLAN

INDEX
Part I………………………………………….3
Central Problems…………………………………………………………………………………………………...……..Page 3
Economic and Industrial Information……………………………………………………………………..……..Page7
Internal and externalanalysis……………………………………………………………………………….……….Page 13
Part II………………………………………….21
Strategic choices in the past………………………………………………………………………………………….Page 21
Actual situation…………………………………………………………………………………………………………….Page 27
Part III……………………………………..…32
Exclusive alternatives………… ………………………………………………………………………………………..Page 32
Recommandations………………………………………………………………………………………………..……….Page 40
Conclusions………………………………41

Bibliography………………………………42

PART I
1. Identify and state the centralproblems as supported by the information of the Annual report.
2. Undertake outside research to uncover economic and industrial information.
3. Internal and external analysis.

1. Central Problems:

* Inditex has problem with the penetration of the Asian market:
As every business man or woman knows introduce in a new market it´s not really easy, you have to have good knowledge abouthow is the sector in other country, the competitors, prices and style of life of the people.
* Nowadays, they speak about social and responsibility issues: security (“safe to wear”) and natural (“clear to wear”):
Before, any company was concerned about having a social responsibility but now it’s a must or at least in the ethical level to do it, and your company will be better looked.
*Nowadays they have a major agreement with the International Textile, Garment and Leather Workers Federation (ITGLWF), but before they didn’t take account:
Having an agreement with international organization in its sector it’s always good because you will be looked as a big and international company or in this case group which meet standards.
* Zara is the most important brand in the company;the others don’t have the same importance:
In a international brand composed for a big group of brands, in this case within Inditex and all its brands happen that always one brand is the most important, it’s the reference brand, this can be dangerous.
* The vertical integration of the production process has have problems:
There are different ways to integration of the production and by thevertical some time Inditex has problems because everything is centralized and for different ways to think the manager may happens troubles.
* High numbers of competitors in Spain and the other countries:
Textile sector is one of the most competitive sectors in every economy, there are American, German, English, Italian brands and all have good reputation and also they have advertising, biginternational communication campaigns that improve significantly the sales.
* Every big international company, as Inditex, has to renovate every shop in all world, this suppose to do a big effort:
Renovation of every shop is something necessary for the customer don´t get boring with the same clothes and the windows, changing every month or every two, three weeks suppose a big effort.
* Thecommunication, being a big group, may be difficult to be similar, have a similar way to communicate to their customers:
It’s necessary to have a strong line of strategy for many countries and this is really difficult because in Inditex works many people from many countries and with different vision. For this reason communicate, it’s difficult but necessary, to the stakeholders the sameperspective that has the Inditex Group.
* The global taste can be get a problem against local tastes:
The World is being globalized and more and more the taste is similar. Nevertheless, every country has different tastes, with different cultures and Inditex has had problems in Africa, Latin America and Asia.
* Some problems with some...