Zara Company Analysis Essay Example | Topics and Well Written Essays - 4250 words

Zara Company epitome - Essay ExampleThis marketing report presents a fall for recommendations for the fashion retailer, Zara. These recommendations are based on the analysis of out-of-door and internal environment. The analysis of the external environment relies on theories such as the PESTLE Analysis and Porters Value set up Analysis. The analysis of the internal environment relies on the analysis of the participation using Resource/ Capabilities Analysis and Value Chain Analysis. Zara is a fashion retailer owned and operated by the Spanish guild, Indetix Group. This fashion retailer has introduced a different strategy within the fashion market that goes against the lively strategies of the fashion industry (Anon, nd.). Despite this, or rather on account of this, the company has managed to record profitable growth since its inception. However, in order to pursue encourage growth, it is necessary to analyze the current strategy. ANALYSIS OF EXTERNAL ENVIRONMENT PESTEL Analysi sPESTLE Analysis is a widely used analysis to understand the external environment of the company. It is an acronym for Political, Economic, Social, Technological, Environmental and Legal factors that have an impact on the overall operations of the organization (Henry, 2008). Political FactorsSince companies operate within a certain geographic boundary or boundaries, the government has an impact on the company. It impacts through the laws and restrictions placed on the companies. Since Zara operates mainly in Spain and the UK, which falls within the EU countries therefore the political landscape of this area should be understood. The EU is beneficial for the company as it has made the entire region work as a local market. This allows the company to get fair advantage in the entire EU market. Zara is also operating outside Spain and EU markets and in markets such as USA, Dubai and Singapore. In this regard, the company needs to ensure that such countries have friendly relations with t he national base of the company which is Spain. Also such countries should have a politically steadfast government so that the company continues to enjoy friendly terms. Economic Factors In terms of the economic factors, companies all around the world have been seriously mangle with the financial crisis that struck the entire world in 2009. This has hampered the buying power on the consumers and most