Strategy Upgrade for Zara
In the role of a Management Consultant, you are required to undertake a strategy upgrade for Zara and provide a business report to the CEO on further growth opportunities using the techniques and concepts you have covered in the module. At least, THREE Global Entry Strategies should be evaluated in the report.
Report Structure
Introduction
Provide an introduction to Zara, outlining the impact of the external environment on its business. Explain the structure of the report.
The External and Internal Environment
- Analyze the external environment using Porter’s Five Force Model to identify competitive forces affecting Zara’s business.
- Conduct a PESTLE analysis to evaluate the macro-environmental factors influencing Zara’s operations.
- Perform a SWOT analysis to identify Zara’s internal strengths and weaknesses and external opportunities and threats.
- Utilize the VRIO Model, Porter’s Value Chain, and Resource Capabilities GAP analysis to determine Zara’s current sources of competitive advantage.
- Discuss the three most critical factors emerging from the analysis.
Strategy in the Global Environment
- Evaluate the motives for Zara’s expansion using Yip’s Internationalisation Framework.
- Explain how Zara’s global entry strategy is directed and suggest one entry mode based on the provided resources.
- Discuss strategies for Zara’s internationalization.
- Recommend at least three global entry strategies for Zara, providing justified recommendations for better global entry and competition.
Corporate Strategy
- Evaluate how Zara can improve its global supply chain using strategies such as diversification, horizontal integration, vertical integration, outsourcing, and strategic alliances.
- Provide recommendations for increasing Zara’s profitability using relevant models/frameworks.
Conclusion
- Summarize the key findings from the analysis of Zara’s external and internal environment.
- Review the recommended global entry strategies, including justification for their selection
- Provide an overview of the recommendations for improving Zara’s global supply chain and enhancing profitability.
- Emphasize the importance of the proposed strategy upgrade for Zara’s future growth and competitiveness in the global market.
References
- Minimum 20 references from company’s website, its annual reports, its news release, scholarly articles, books, research papers, consultancy agency reports, government publications etc in Harvard style
Key learning from this project
- Comprehensive analysis techniques including Porter’s Five Force Model, PESTLE analysis, SWOT analysis, VRIO Model, Porter’s Value Chain, and Resource Capabilities GAP analysis.
- Understanding of global entry strategies and their application in the context of Zara’s expansion.
- Insight into motives driving international expansion and the selection of appropriate global entry modes.
- Evaluation of supply chain management strategies such as diversification, integration, outsourcing, and strategic alliances.
- Application of relevant models/frameworks to enhance profitability and competitive advantage.
- Experience in formulating strategic recommendations to support business growth and development in a global environment.
Answer to the question – How will you applying your learning in your future organization
Through this project, I acquired a deep understanding of strategic analysis tools such as Porter’s Five Forces, PESTLE analysis, and SWOT analysis frameworks. These tools helped me identify critical factors affecting Zara’s competitive advantage, which I believe are applicable to any organization. I can leverage this knowledge to conduct comprehensive environmental analyses for any organization I will work with, identifying both internal strengths and weaknesses and external opportunities and threats. This will enable us to develop effective strategies to maintain and enhance your competitive position in the market.
Furthermore, I gained valuable insights into global expansion strategies, including the use of Yip’s Internationalisation Framework and various entry modes. I can apply this knowledge to support your organization’s international expansion initiatives, helping you navigate the complexities of global markets and identify the most suitable entry strategies. Additionally, I learned about supply chain management strategies such as diversification, integration, and outsourcing, which I can utilize to optimize organization’s supply chain and enhance profitability. Overall, the key learnings from this project have equipped me with the tools and expertise to drive strategic growth and development within organization