Zara Strategy Essay Example | Topics and Well Written Essays - 3250 words

Zara strategy - Essay ExampleEconomicIn spite of the eurozone crisis and economic recession, UKs GDP has reduced to a mere 0.2 % comp ard to the overall industry growth, which has dropped by 0.6%.N harmonize to eminent economists, the unemployment rate will change magnitude to 9% in the coming two years. Around two million people will remain unemployed.The sell clothing market of UK is constantly increasing. According to Key Note report (2012), the UK market showed a 3.3% increase in 2011, and sales reached 43.1 billion pounds. Womens garments were the largest sector in terms of sales revenue followed by men and childrens sector (Chakrabarti, Subramanian, Meka, & Sudershan, 2012).SocialThere has been a 7% rise in board group which represents the working population. Because of this, more people are now including formal clothing as their unremarkable wear. This means that in future, Zara may also be required to change its portfolio, in order to gimmick the growing needs of this a geing population.Due to the current economic crisis and budget deficit, the purchasing capacity of the consumers has reduced. Now, sustainable and normal living standard has become a challenge for the local people. To get rid of the onerous financial characterize, the UK government has taken the policy of managed migration.... Technology Latest technological advances such as RFID, electronic data exchange and ERP, are used by most of the retailers in UK to decrease operation cost and enhance the value chain process (Pettigrew, 2006). According to the Science and Innovation Investment Framework (2013), there has been only 2% increase in investment in technological advances. This has made the investment condition in UK very inflexible Environment In order to meet the environmental norms, set by Kyoto Protocol, the industries need to reduce the percentage of carbon emission to a minimum of 9% from the present rate. According to the government protocol, the foreign countries in UK ne ed to decrease their Carbon footprint to a minimum of 20% in the coming two years (Unfccc, 2013). Thus, in order to sustain in the market, Zara will keep back to follow the protocol in its value chain. Legal According to the economic freedom journals index, UK has been ranked seventh in terms of free economy (Index of Economic Freedom, 2013). It has also been praised by skirt street Journal for its dividing line and economic sustainability. To solve any labour related issues, the country stringently follows the rules and regulations of European Union Labour Law. This indicates a necessary change in the HR policies and regulations of Zaras business process to comply the EU Guidelines. Porter Analysis The major categories of apparent industry in UK are mens wear, childrens wear, and womens wear. The industry value can be calculated by using Retail Selling Price (RSP). Total Revenue of the Industry CAGR Womens wear manpowers wear Children swear $54,495 million (2011) 2.1% 59.2% 26 .9% 13.9% (Source Marketline, 2012b) Growth potential of