3.2 External Environment To have a better understanding of the company's business model it is necessary to take a look to the external factors. Germany) will facilitate the further expansion of Zara ?
Zara entered new markets that normally were riskier to approach by partnerships: franchises in Cyprus, joint-ventures with Benetton in Italy and Otto-Versand in Germany. If Zara will expand in Asia it will need to replicate its business model because of distance and differences Threats: ?
They in a very short time create a design of inexpensive clothing based on the latest trends of high fashion.
Such a system allows the company to quickly update the entire range of stores, quickly remove unpopular models from production and refine the design in conformity with consumers’ requests.
In most textile companies, the cycle of dressing takes about 8 months.
This term includes the development of design, the search for fabric, painting fabrics, sewing models, and the collection of goods to the store. Inditex has its own team of designers, numbering about 400 professionals.
By the accomplishment of the two objectives Zara is looking to create enduring profitable growth.
Introduction In my short study case I will start by illustrating Zara's present situation (according to the case), then I will continue with a brief analysis of the internal and external environments; in the next step I will develop some alternative ways of action and I will end by presenting my recommendations regarding the adaptation of the Zara's business model in order to successfully face the future economic context. A second objective is to continue their stores' growth in the countries where already exists in order to consolidate its position and increase its market share.
Brands provide an opportunity to purchase fashionable, but rather cheap clothes to hundreds of thousands of consumers.
The creator of all this, businessman Amancio Ortega, made a world corporation from a small family atelier.