Zara Essay Example | Topics and Well Written Essays - 1000 words

Zara - Essay Example nd name of Zara and maintaining quality in the business operation processes will help the organization to capitalize on more potential business opportunities. The organization should not consider focus strategy as it is important for the organization to focus on broad market segment. It will help the organization to gain more competitive advantages. Grand Strategy The organization should also try to adopt and implement grand strategy in the business operation process in order to enhance decision making and strategy development process to set effective long term plans from several available alternatives. This grand strategy can be classified into four major strategies, such as growth strategy, stability strategy, retrenchment strategy and combination strategy. The management of the organization should adopt and implement growth strategy as it is important for the organization to achieve further growth. It is true that emergence of new entrants and adoption of online business activitie s are creating real threat for Zara. In addition to this, high labour cost is affecting the profit maximization aspect of Zara. Adoption of growth strategy will enhance the decision making and strategy development process of the organization. It is highly important for the organization to integrate online business operation process to achieve sustainable growth rate in this competitive industry. In addition to this, consideration of growth strategy in the decision making process will help the organization to adopt effective differentiation process that can influence the management of the organization to enter different fast fashion and fashion accessories industry to secure more market share and gain more potential competitive advantages. Functional Strategy Function strategy can be... The paper describes differentiation strategy which helped to develop the great brand - Zara. Zara already implemented product differentiation strategy. The organization always tries to offer differentiated clothes to target customers. The organization does not target a narrow market segment. Differentiated products for the people of all ages and different cultural background are the major success mantra of Zara. The organization should differentiate its business operation in. Fashion and accessories market is highly demanding and achieving strong growth rate. The organization should not consider focus strategy as it is important for the organization to focus on broad market segment. In conclusion, the report says that slow inventory turnover and critical supply chain management process are the major weaknesses of Zara. Therefore, it is important for Zara to source or prepare limited inventories according to the market demand and requirement. Appropriate production and supply according to the current market demand will help the organization to increase the efficiency of its inventory turnover. In addition to this, the organization should maintain short production cycle to reduce overall supply chain cost. High labour cost is another weakness of Zara. Therefore, it is important for the management of the organization to integrate automation in the business operation processes that can help to reduce the stress and pressure of the employees. High automation can improve business performance and can reduce the human resource management associated costs.