1
Zara’s Case Study
Student’s Name
Institutional Affiliation
Course Number and Name
Instructor
Due Date
, 2
Zara’s Case Study
1. What influences from the external environment over the next several years do you think
might affect the way Zara competes?
One major influence likely to affect the way Zara operates is the altering economic situation.
Eventually, technology is growing fast, accompanied by other numerous transformations.
Therefore, clients may view outfits as attributed to luxury costs instead of necessities.
Consequently, this may halt the company's sales, while more savings may concurrently adversely
impact the demand curve.
Another likely influence may be demography. Population density highly impacts the
clothing sector and its level of competition. In the near future, customers may request varied
commodities based on their ages. The elderly may begin demanding fitting clothes, which may
otherwise impact the company's demand curve. Moreover, high birth rates and the population of
pregnant women may divert Zara's operations. For instance, it may decide to concentrate on baby
and maternity clothes. Hence, Zara needs to keep updated with its customers’ changing tastes
and preferences.
2. How easy or difficult do you think it would be for competitors to imitate Zara’s
supply chain as a capability?
Thus far, the company has a solid supply chain, which takes around a month for its supplies
to be transported to its warehouses. The company concentrates on cost-effective marketing and
deals with quality goods (Aftab et al., 2018). Furthermore, it keeps updated with current trends.
Generally, the company's far-reaching approach targets attaining growth through
multiformity with vertical integration. Therefore, any firm that desires to operate like Zara must
focus on a better strategy. Consequently, this would demand large sums of money, provided
Zara’s Case Study
Student’s Name
Institutional Affiliation
Course Number and Name
Instructor
Due Date
, 2
Zara’s Case Study
1. What influences from the external environment over the next several years do you think
might affect the way Zara competes?
One major influence likely to affect the way Zara operates is the altering economic situation.
Eventually, technology is growing fast, accompanied by other numerous transformations.
Therefore, clients may view outfits as attributed to luxury costs instead of necessities.
Consequently, this may halt the company's sales, while more savings may concurrently adversely
impact the demand curve.
Another likely influence may be demography. Population density highly impacts the
clothing sector and its level of competition. In the near future, customers may request varied
commodities based on their ages. The elderly may begin demanding fitting clothes, which may
otherwise impact the company's demand curve. Moreover, high birth rates and the population of
pregnant women may divert Zara's operations. For instance, it may decide to concentrate on baby
and maternity clothes. Hence, Zara needs to keep updated with its customers’ changing tastes
and preferences.
2. How easy or difficult do you think it would be for competitors to imitate Zara’s
supply chain as a capability?
Thus far, the company has a solid supply chain, which takes around a month for its supplies
to be transported to its warehouses. The company concentrates on cost-effective marketing and
deals with quality goods (Aftab et al., 2018). Furthermore, it keeps updated with current trends.
Generally, the company's far-reaching approach targets attaining growth through
multiformity with vertical integration. Therefore, any firm that desires to operate like Zara must
focus on a better strategy. Consequently, this would demand large sums of money, provided
