Design a mission statement, vision, goals and objectives for your clothing retail brand.

Scenario:

There is a foreign clothing retail brand (for e.g. ZARA, NEXT, PRIMARK etc.) that is planning to start its operations in Pakistan. This information will be used by Board members in a meeting where they will look into stakeholder, national and global environments and the effect it has on business and will decide their future direction.

Task 1:

     Design a mission statement, vision, goals and objectives for your clothing retail brand. Keep in mind the above scenario while designing the objectives for the firm. (Pre-submission: 30/04/13)

 MISSION STATEMENT OF ZARA:

The mission statement of ZARA is about that “ZARA walks at the pace of society, dressing ideas, trends and tastes that society itself has matured.”

 

VISION STATEMENT OF ZARA:

The vision statement of the ZARA is “to give the customer an exclusive choice of fashion by providing a quicker turnover of new stock than other fashion retailers”.

 

GOALS:

Goals of the ZARA are mentioned as;

     ZARA wants to create a community around brand while allowing individuals to feel connected to ZARA fashion and values.

     ZARA through its unique business models and stores has proved its business can be successful with little or no advertising.

     They always innovative their products to enhance shopping experience and provide new designs at affordable costs made from quality materials which follow latest trend.

 

 

 

 

Objectives:

     ZARA as a foreign clothing brand retail brands wants to start a successful operations in Pakistan in December 2013.

     They will decide their future direction while look into stakeholder, national and global environments and the effect it has on business.

     ZARA wants to develop a consumer focused product line and marketing strategy.

     ZARA wants to reinforce customer focus as the key driver of the ZARA brand.

     Zara should focus on increasing potential consumers and frequency of current consumer.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conduct an environmental and organizational audit (resource audit) for the firm. Perform PESTLE, Porter five forces, and resource audit for the firm.

PORTER FIVE FORCES:

1.      Bargaining Power of Suppliers:

The bargaining powers of suppliers of ZARA are such as given;

·         Its computer controlled the cutting machine which cuts up to 1000 layers at a time. It then sends the cut materials to suppliers who sew the pieces together. The suppliers work is relatively simple and many suppliers can do the swing.

·          Thus, the pool of suppliers is expanded and Zara has greater flexibility in choosing the sewing companies.

·          Further s because Zara dyes 50% of the fabric in its plant, it is less dependent on suppliers and can respond more quickly to mid season changes in customer color preferences.

 

2.      Threat of Substitute Products:

The threats of substitute products of the ZARA are given below;

·         Zara forces on meeting customer preferences for trendy, low cost fashion. It has the highest sales per square foot of any of its competitor.

·          It does so with virtually no advertising and only 10% of stock is unsold.

·         It keeps the inventory levels very low and offer new products at an amazing pace for the industry.

·         Zara has extremely efficient manufacturing and distribution operations.

·         The Threats from substitutes such as new fashion designs of ZARA are controlled through offering all range of clothing and customer loyalty.

·         Further it has bring online trading it is noted that the competition is low than in other industries.

 

 

3.      Threat of New Entrants:

The threats of New Entrants of the ZARA are given below;

·         The ZARA IT supports is strongly join group of designers, market specialists, production managers and production planners so the New entrants are unlikely to provide IT to support relationships that have been built over time.

·          Further it has rich information about customers that would be hard to imitate.

 

4.      Bargaining Power of Buyers:

The bargaining power of buyers of Zara are such that;

·          Zara boasts more than 11000 new designs a year where as competitors typically offer only 2000 to 4000.

·         Further because of the low inventory that the Zara stores stock, the regulars buy products they like when they see them because they are likely to be gone the next time they visit the store.

·          More recently Zara has employed laser technology to measure 10,000 women volunteers so that it can add the measurements of real customers into its information storage.  This means that the new products will be more likely to fit Zara customers.

·         Since the ZARA Company offers new and fashionable products the bargaining power of the customer is low.

5.      Rivalry Among Existing Customers:

The ZARA Company faces severe competition from competitors such as M&E, GAP. Due to the low growth in the fashion industry in Europe this competition has become more severe. So there are two kinds of competitors existing among the customer that is Global competitor and local competitor.

 

 

 

 

PESTEL ANALYSIS:

Political:

The political factors have also affected the ZARA Company. Some Political factors are given below;

·         Reduce of restriction of import quotes to Europe and USA

·          The civil unrest in the middle east region

·          Free trade policy in European union

·          Import tariff are four times high when goods are imported from developing countries to developed countries.

 

Economical:

The Economical impact of the ZARA is such as that the ZARA should have to reduce the following;

·         Interest rates

·          Taxation changes

·          Economic growth

·          Exchange rates

·         Tariffs.

·         The higher borrowing cost and the financial crisis exist in the European region.

·         With increase in the interest rates the inflation will increase and buying power of the customer will decrease.

·          Increase of fuel prices due to the civil unrest in Middle East may increase the transport cost and affect to margins of the company.

 

 

 

Social Culture:

The culture around the ZARA business is so modern and the consumers are also updated. So it is a competition market but it is very easy to launch the new product in the market. 

·         The ZARA would have to work accordingly to the trend and satisfy customers demand due to changes in the generation choices.

·         New trend among younger generation in Europe and USA for fashion.

·         Low growth in the population in Europe.

 

Technology:

ZARA is base on the use of technology from the year 1970. So ZARA have the following technology;

     Coping with the change.

     Just in time manufacturing system.

     High tech distribution system.

     Online shopping

     Bar coding

     And Computer Aided Designs

     Auto CAD & Auto CAM

 

Environmental:

The Group environmental commitments of Zara have a direct impact on their shop, products and policies. So they have to improve the following things include as;

·         High demand for environmental friendly garments.

·         Effect of global climate to organic cotton production.

·         Attention of areas such as sustainable development.

·          Carbon footprint of the company.

Legal Factors:

The Legal Factors of the ZARA is given below;

·         Laws and regulation relating to fashion and clothing.

·         Child labor and rules and regulations relating to labors.

 

Resource Audit of the ZARA:

Tangible Resources:

Physical Resources:

1.      Stores: 1,688 in 77 countries

2.      Factories: 20

3.      Total selling area: 488,400meter/squares

 

Financial Resources:

Invested capital: 1050 million (Euros)

Human Resources: 92,301 from more than 140 nationalities

 

Intangible Resources:

Brand: is amongst the three most recognized brands in spain.

Image: ZARA is a fast fashion clothes company.

Economic goodwill: Excellent reputation in quality and price.

 

 

 

 

·         Apply SWOT, Ansoff and BCG matrix techniques to define the strategic position of the given organization.

SWOT ANALYSIS OF ZARA:

STRENGHT:

     Vertical systematization of Product Process.

     Ability to recreate fashion

     High turnover of Product.

     Active use of Stores.

     Brand Loyalty

     Brand Awareness

 

WEAKNESS:

     Middle Priced Goods

     Repeated Sales of Out of Stock

     Low Quality

     Lack of E-commerce

    

Price: £ 79

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