zARA & PROJECT DESIGN

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COMPANY PROFILE

 Zara SA is a Spanish clothing retailer based in Arteixo, Galicia. The company specializes in fast fashion and its products include
clothing, accessories, shoes, swimwear, beauty products, and fragrances. It is the largest company in the Inditex group, the largest
clothing retailer in the world.

 In 1988, the company began to expand its international operations throughout Portugal.

 In September 2010, Zara opened its online store. The site is starting up in Spain, the United Kingdom, Portugal, Italy, Germany and
France.

 Zara introduced the used RFID technology in its stores in 2014. The RFID chip resides in a security tag that is removed from the
garment upon purchase and can be reused. The chip allows the company to quickly take inventory by detecting radio signals from RFID
tags. When an item is sold, the warehouse is immediately notified so that the item can be replaced. We can easily find an item that is
not on the shelf with an RFID tag.

 In 2015, Zara was ranked 30th on Interbrand's Best Global Brands list.

 In 2019, Global Fashion Business Magazine said that while the global textile trade fell 2.38%, Zara grew 2.17%.].

 This fashion group also owns brands such as Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. The
company operates more than 2,220 stores and is present in 88 countries.
VISION, MISION & OBJECTIVES -

VISION
To be number one fashion retailer.

MISSION
The world is getting smaller and smaller; They want the world to dress in style and class and experiment
with unique designs every week.

OBJECTIVES
The main goal is to increase customer demand and satisfaction, giving them the opportunity to discover
new unique designs every week.
SWOT Analysis

Zara's strategy presents both opportunities and strengths, threats and weaknesses. The following section describes four aspects of Zara's
agile approach.

Strengths:
Zara's value chain is vertically integrated, offering many advantages. He can react quickly and he has high control over the whole
process from design to final product. A supply chain is efficient when it uses distribution centers and warehouses correctly. Its strategy
also makes it possible to distribute products over a wide geographical range in a very short time. Another thing is that the product
must be close to the market demand. Their products are only produced in limited editions; therefore, they have to sell their products
in a short time so that they can get the price without having to return them. This responsive approach means both lower marketing
costs and higher profit margins for the business. IT integration is also a key aspect of Zara's strategy, which is important because it
allows information to be shared between different departments within the company.

Weaknesses:
Zara's business model is certainly well-suited to today's needs. But it has a significant weakness, which is the difficulty of exploiting
continuous scalability. Zara represents 80% of Inditexs' consolidated revenue, meaning that the entire group relies heavily on Zara's
sales figures. Vertical integration of the supply chain has its limits in terms of scalability. Zara couldn't produce more clothes at a lower
cost, and then the whole concept was based on insignificant quantities because they were quickly distributed in stores. As a result,
agile processes can degrade quality in some cases. Keeping abreast of the market and catching the latest trends and turning them into
ready-to-use clothing in a short time requires tremendous efforts of employees and management. Zara did not implement online
shopping, leading to loss of orders for competitors.
Opportunities:
Online shopping has become a large and important market; Customers can go online and order anything they
need. If Zara allows customers to shop online, it will increase their sales. Pablo Isla, Senior Vice President and
Chief Executive Officer, said: “We consider entering the Indian market to be of significant strategic
importance.

Threat:
The first threat is the constantly increasing rent in shopping centres, Zara has to bear high rental costs, which
means they have to increase prices or reduce other costs.
Zara's main competitors are H&M, GAP, NeXT and Uniqlo. These companies compete with Zara in a number of
categories: pricing, sales, financial ratios, and profitability. Additionally, there is competition with the Asian
clothing industry, which is launching brands that can earn higher prices than their competitors in this industry.
PROJECT DESIGN
Research design refers to the overall strategy we choose to integrate the different components of our research in a
coherent and logical manner, thus ensuring that we will approach the research problem in a coherent manner. It is the
blueprint for data collection, measurement and analysis.

DATA COLLECTION

TYPES OF DATA:

• Primary data is data collected by the researcher from direct sources, using methods such as surveys, interviews or
experiments. It is collected with the research project, directly from primary sources. We need to prepare questions
and interviews depending on the topic and as respondents to answer them.

• Secondary data is data collected from studies, surveys or experiments that have been carried out by others or for
other studies. It is cost-effective and fast because we only have to analyze the data collected by others.
METHODS:
 Qualitative method: The word qualitative implies an emphasis on qualities of entities and on processes and
meanings that are not experimentally tested or measured [if measured] in quantitative, quantity, intensity or
frequency. Qualitative researchers emphasize the socially constructed nature of reality, the intimate
relationship between the researcher and what is studied, and the situational constraints that shape inquiry.
These researchers emphasize the value-filled nature of the investigation. They seek answers to questions that
focus on how social experiences are created and meaningful. In contrast, quantitative studies focus on
measuring and analysing causal relationships between variables, not processes. Qualitative forms of
investigation are viewed by many social and behavioural scientists as a perspective on how to approach
investigating a research problem as a method.
 Quantitative Methods: Quantitative methods focus on objective measurements and statistical, mathematical,
or arithmetical analysis of data collected through polls, questionnaires, and surveys, or by manipulating
statistical data in advance using computer techniques. Quantitative research focuses on collecting digital data
and generalizing that data across groups of people or to explain a particular phenomenon.
QUESTIONNAIRE:
A questionnaire is a research tool consisting of a series of questions (or other types of prompts) intended to
collect information from respondents. The questionnaire was invented by the Statistical Society of London in 1838.
For this project, we used a questionnaire method in which we ask closing questions to understand consumer
behavior towards the Zara brand. This is a method of quantitative data collection where we prepare Google forms
and randomly send questionnaires to people and collect their responses. we then quantitatively represented this
data through a graphic representation to better understand the project.

AREA OF SURVEY:
We circulated the questionnaire via Google Forms among people and gathered their responses and carried out this
project based on the responses received on the questionnaires marked by them.

SAMPLE SIZE:
• In this research project, a descriptive design was used.
• Convenience and judgment sampling method will be used to obtain information about Zara.
• Sample size: 35 Respondents
• Sampling method: Random sampling.

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