Strategic Analysis of Zara Inc Essay Example | Topics and Well Written Essays - 2500 words

Strategic Analysis of Zara Inc - Essay Example Research indicates these factors include intensive competitive rivalry, buyer power with consumers, and even threats of substitute products that can drive pricing lower. Research has also indicated much negative publicity for Zara, something requiring addressing by Zara executives in order to improve and sustain a quality brand reputation in its international markets. Though Zara is able to effectively create some barriers, such as new market entrants and by removing buying power by limiting outsourced supplier presence, Zara still requires more emphasis on understanding market characteristics effectively to provide relevant products and gain more brand loyalty. Recommendations for business improvement have been identified as conducting more intensive market research, more emphasis on the promotional function and utilisation of interactive marketing, decentralisation of certain business functions along the value chain, and building more self-owned manufacturing and supply capacity in order to gain competitive advantage. 1.0 Industry analysis Buchanan and Huczynski (2010) provide knowledge of contingency theory, a strategic model that indicates as circumstances in the market or industry change, the organisation’s structure must also be changed in order to adapt and stay relevant. Zara is a prime example of a business that understands the market characteristics and capabilities of major rivals, creating contingency strategies in order to respond (quickly) to changing market and industry dynamics. This is accomplished, of course, through maintaining a stance in which Zara executives routinely scan the external environment to identify threats and opportunities that could contribute to a better market position. Thompson, Gamble and Strickland (2005) offer the Five Forces Model proposed by Michael Porter identifying five competitive threats that are industry-related that will either enhance or disturb maintaining profitability and competitive advantage. The most intensive industry concern for Zara is threat of substitutes in its operating markets. H&M, Gap Inc. and Benetton offer similar fashion merchandise that is focused on either youth markets with a trends-focused set of buying characteristics or mass markets that are attracted to fashionable styles at affordable prices. Macro-economic theory indicates that threat of substitutes becomes a legitimate concern when the demand for the product has been affected by price changes associated with substitute products (Boyes and Melvin 2007). For Zara, substitute products include clothing sold at resale shops, such as with the emerging trend for retro-style fashions. In this environment, clothing is sold at a nominal price, but still offering consumers products that are deemed fashionable. The ability of consumers to procure merchandise and fashion accessories from a variety of lower-cost sales facilities has the ability to affect demand for Zara’s merchandise. Thus, Zara must be aware of alternative procurement

Social Relations Essay Example | Topics and Well Written Essays - 750 words

Social Relations - Essay Example Many people tend to be aggressive for one reason or another. The result of one's character is highly characterized by roles one plays, and mutual interactions of motivation and the motion which lies at the heart of autonomy adaptation and social interaction in both biological and artificial agents (Kenny D, 1994). They also have a powerful and wide range in influence on many aspects of cognition and action even though one's role is often considered complimentary. This is concerned by external and internal factors involved in the establishment of one's behaviour where emotion is the core determiner of behaviour among the critical factors (Kenny D, 1994). Within societies, an individual learns not only on his own but also through interaction with other people surrounding him/her. This brings about the issue of social intelligence an essential tool in communication through conservations (Brown J, 1991). Social aggregation has a strong genetic basis where it is mainly as a result of environmental influences (Brown J, 1991). Specifically, teachers and peers indicate an extent to which a participating child exhibits social aggressive behaviors, such as trying to make others hate one another or the degree of influence to make others like one another, or saying bad things and spreading nasty rumours (Brown J, 1991). Empirical evidence for an effect of workplace psychological control on an individual is sometimes not visible but studies have shown that negative parenting behaviours such as lack of responsiveness and coercion are linked to one's ego (Perloff R, 2003). People who have socially aggressive friends tend to be aggressive themselves (Perloff R, 2003). This contributes to much social stratification where people tend to group themselves in terms of character and behaviour. This makes them share a habit in common. For workers today, the stress associated with trying to blend the responsibilities of paid work with responsibilities of family and personal life has become an increasingly visible issue (Perloff R, 2003). This is because more and more workers continue reporting on how their lives have become frenzy as they struggle with the unrelenting demands of work and personality (Perloff R, 2003). The significance of being free of bias brings about independence freedom of thought and democracy, where one is not intimidated (Kenny D, 1994). It creates integrative minds, where a person acts without being told, and thinks that he is right (Kenny D, 1994). There is an increasing demand for those who practice initiative because the reward is two fold, one it helps one improve his financial status and also develops strength in his/her personal attributes. In conclusion, social psychology principles plays a critical component in enabling individuals interact, as well as personal relationship. It creates the spirit of mutual interrelationship between people whereby, the participants share information, therefore enhancing clear understanding of our surroundings. Reference Brown, J. David. (1991). "Preprofessional Socialization and Identity Transformation: The Case of the Professional Experience". Journal of Contemporary Ethnography Perloff, R. M. (2003).