Zara and HM Article

H& M

&

Unces A R A

Date: 24/10 2008

Table of contents

Introductionp. 3

Zara

Company presentationp. 3

Common strategiesp. a few & some

Growth strategiesp. 4 & 5

Infestations analysisp. 5 & 6th

Value chainp. 6 & 7

SWOT analysisp. 7 & 8

Price as well as quality Gridp. 8

H& M

Organization presentationp. 9

Generic strategiesp. 9

Expansion strategiesp. twelve

PEST analysisp. 10 & 11

Benefit chainp. 11 & doze

SWOT analysisp. 12

Zara and H& M

Comparison of the some P'sp. 13

Porters five forcesp. 16

Comparison of the significance chainp. 15

Group reflectionEnclosed

* Advantages

We have been given an project, where we've been divided into organizations. In our group we have examined two corporations, namely Zara and H& M. Those two companies are both equally very major brands within clothes. The fashion business is very challenging, and we will teach you what we imagine the two companies does well at this hard business, and why this is good. We've been giving the perfect time to solve the assignment in some of our classes with Gitte and Peter, the rest we now have made at home. After we have examined the two companies we will certainly compare all their 4 P's and their value chain, similarly we also will make a five makes analysis. Z . A Ur A

2. Company account – Zara

Zara is a very big garments chain from Spain. The chain opened in 1975 by Mr. Ortega, and it now has more than 1 . 000 stores in roughly 63 countries – so it is a very big chain. On the other hand Zara features its biggest market in Spain, where they may have 364 shops in total. They sell fashion clothes of a pretty good quality to reasonable prices – this also means that they have an extensive target group, which we expect to be from kids to adults younger than 50, both men and women. Over the years Zara has extended their products heavily, right now they also sell add-ons, cosmetics, pieces of furniture and fragrances. They have produced a whole new store referred to as Zara Home where they may be selling furniture's; we will however give attention to their clothing. The founder of Zara is naturally extremely wealthy, actually he is the most wealthy man vacation, and the second richest within the business of style. Also Zara's stores are incredibly big, many of them are among 800 and 1 . 000 square metres – making room for a number of fashion clothes. Inditex, the mother business of Zara has many stores under these people, but it will probably be worth mentioning that Zara is short for 77 % of Inditex' overall product sales, which is very impressive, and their plan for the future is to continue growing and developing bigger and bigger. Zara clothing is marketed worldwide, but not long ago the first store opened about Strøget in Copenhagen. 5. Generic strategies

Generic tactics is a traffic generation invented by Michael Porter. It is very well-known and many firms use it. The generic approach tells regarding the product(s) and its focus on group(s). Under you will see the generic approaches model. | Low cost| Unique product / high cost

Broad goal group| Overall cost leadership| Differentiation| Filter target group| Niche – Cost focus| Niche – Differentiation emphasis

As seen the pictures we believe that Zara uses the overall price leadership strategy. Zara's focus on group is incredibly broad however prices are usually fairly low, this is why each uses the overall expense leadership strategy. To a certain prolong you could also admit Zara uses the difference strategy. The reason is , they have incredibly beautiful products which are a little more expensive than their best competitors. Although also mainly because they have so many different products - they have everything from clothes to furniture's. Although mainly were certain that each uses the overall expense leadership strategy. * Development strategies

Ansoffs growth approach is a popular toll inside marketing. The strategy is used by entrepreneurs who have objectives for progress, and Ansoffs matrix presents different ideal choices to realise the...



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