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The Analysis Of Zara

4708 words - 19 pages

University of Sunderland
The faculty of Business and Law
Module Title: Marketing Management
Module code: PGBM15

The market analysis of ZARA
Student Name: Xia Tang
Student Number:139151583
Tutor: Steve Storey
Module Leader: Sudipta Das

Word Count:4005
Date of submission: 16th June 2014

Introduction of ZARA 1
1 Dynamics and trends within the marketing environment of ZARA. 1
1.1 Introduction of marketing environment 2
1.2 Macroenvironment-----PESTLE analysis of ZARA 2
1.3 Microenvironment analysis of ZARA 4
1.4 Poter’s three generic strategies on ZARA 4
1.5 ...view middle of the document...

This famous fashion manufacturing company has been thought the most efficient and market responding corporation in the whole fashion industry worldwide. 

More importantly, ZARA used modern technology in its manufacturing factories, where complex process are necessary to be simplified. And incorporate technology in process and tackles are to be taken after comprehensive measurements and analysis. There are opportunities of existing domains where the company may progress and are going to explore.

This assignment is going to analyze the market environment and making some achievable plans for the future. This process would be critical and crucial because it leads to decisions that are basis for future actions and these vital decisions for future development will determine the future of the company in this field.

1 Dynamics and trends within the marketing environment of ZARA.

1.1 Introduction of marketing environment

Marketing environment can be defined as the forces and factors outside marketing which have an impact on marketing management’s abilities(Armstrong et al. 2008). The macroenvironment elements consist of political, legal, regulatory, societal, technological and economic and competitive forces. Meanwhile, The microenvironment elements contain the company, customers, competitors, marketing intermediaries, suppliers and publics. Furthermore, internal and external environment can be analysed by SWOT analysis. Generally,a successful business system will take all the factors into consideration.

1.2 Macroenvironment-----PESTLE analysis of ZARA

1.2.1Political Indicators
Government as well as political parties in a country is responsible significantly for the global business environment. In form of policies they may support an trade. Decisions of marketing and expansion would be affected stoutly by the keep-going developments in the political environment. Political environment is quite peaceful almost all the countries. Most of the countries across the world welcome multinational trade despite of their political systems. Even for the cradle of ZARA, Spain also supports and encourages exports of the enterprise which have helped ZARA in a lot of ways.

1.2.2 Economic Forces
The economic environment primarily comprises of the factors which affect the buying power and behaviors of their consumers. ZARA has been dealing with only one currency since its origin, that is Euro. The key reason for ZARA not suffer from recession is that its deals only in Euros, which is a relatively safer currency in its everyday trade compare to Dollars.

The currency exchange rates and economical condition of new country are of much importance . Spain has a stable market with many predictable demands.

1.2.3 Social circumstances
Since Zara has been operated in the unique country, it has to facing social influence. The cultural roots of Spain are very independent and ZARA has been very fortunate to flourish in independent cultural...

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