Zara- as a Pure Play

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Executive Summary In this report as a group of consultant, we have undertaken an analysis of Zara a successful High street store and the need of a strategic change for companies in the digital competitive environment of 2013 to survive in the market. We have identified the need for change and have evaluated the possible outcome of the strategic change program. We have supported our thoughts with several strategic management theories and modules. Also this report will show the importance of management thinking and change management, which will lead to improve the competiveness and efficiency of a company. Table of Contents Executive Summary 2 Introduction 4 Issue 5 The Need for Change 6 Internal and External Environment Analysis 7 Telescopic Observation 7 Porter 5 forces 8 Competitive advantages 10 Porter’s Generic Strategies 10 Paradigm Shifts 11 Experience Curve 12 Strategy Implementation 13 Mckinsey 7S Framework 14 Product Life Cycle 15 BCG Matrix 16 Ansoff Matrix 18 Evaluation and Control 19 Bibliography 20 Appendix 21 Introduction More and more companies in the High Street have announced bankruptcy within the last few years. Just in January 2013 HMV a music retailer and entertainment company has announced that it had officially entered administration. The resistance to change and the slow integration may be a reason for companies not being able to survive in the constantly growing and changing digital market. However there are also some success stories. For example Zara which is a very famous and successful company. Zara is one of the largest fashion companies globally, acknowledged by Mintel and has become Spain’s best-known fashion brand. It belongs to Inditex one of the world’s largest distribution groups where Zara currently holds the flagship brand, at Group Inditex, standing at £2.5 billion (Lutz, 2012). Zara was
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