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Zara marketing case study
Zara marketing case study
Cultural values in business ethics
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Zara is one of the world-known fashion retail companies, which founded by Amancio Ortega and Rosalía Mera in 1975. Zara’s first store was located in Spain and start expanding their company in different countries, like the United Kingdom, Hong Kong and Korea. Now they have around 4,400 stores in 73 countries worldwide. Recently, Zara has been criticized for stealing other artists’ designs. According to the news posted on the guardian, an independent designer come from Los Angeles named Tuesday Bassen has argued that Zara using her pin and patch designs without any inquiries. She sent a legal letter to Zara but they have rejected her claims with the reason, saying ‘Bassen is not famous enough and her designs are lack of individuality. In the …show more content…
Is ‘Steal Art Thief’ happening because of their organizational structure or organizational culture? And how Zara evade the law and overcome this situation when customers found out parts of their products are …show more content…
Business culture contains values, belief and norms that shared by group of people within the organization. Schein (2010), addressed that there are three levels of organizational culture, including artefacts , espoused values and assumptions. It is important to examine does Zara’s daily operation match with its faith, what is Zara’s strong culture and weak culture. The mission statement of Zara is put customers at the first place, give them an exclusive choice of clothes by providing a quicker turnover of new stock than other fashion retailers. (Zara, 2016) Zara also builds up a good relationship with its customers, it is an important channel of getting feedback and suggestion from a wide range of people from different cultures and generations, to know what people desires and
Zamzows could pursue the idea of selling their own product in their stores and seek legal advice to understand the laws of competition. They already have the distribution organized to start marketing their own product. In order to avoid potential law suits they need to understand the laws that protect our market of sales.
Zara sources fabric, other inputs, and finished products from external suppliers. It has purchasing offices in Barcelona and Hong Kong. This gives Zara a competitive advantage towards the costs of goods sold, as it can purchase from both Europe and Asia according to prices. Buying more from China in the future might reduce even more the costs of goods sold.
While the Federal Trade Commission has data security guidelines there is some significant room for improved regulations. The one regulation that is relevant to all companies is that they must meet cyber security compliance requirements. The FTC has the ability to charge companies for poor security practices, especially those that put consumers in danger. In order for Zara to prevent a FTC cyber security action lawsuit they must enact this incident response plan. The components of this plan include all of the compliance measures, which can avoid lawsuits similar to those faced by Zara’s competition. Retail companies are at risk to cyber incidents just as much as other industries. The size of Zara puts even more employees and customers at risk.
Business strategy and model: Zappos.com had a differentiation strategy with which they had differentiated themselves from the rest of the market. They had use a unique corporate culture in their company which was one of the major competitive edges of the company. According to the CEO of the company, Tony Hsieh, that everything that they had done at Zappos such as their relationships with 1,200 to 1,500 brands, policies and website style could be copied, however, the only thing that no one could copy from them was their unique culture. Zappos had 10 unique core values as a basis of their company’s culture, employee performance and their overall operations. They were hiring and firing people on the basis of their abilities that whether they were living up to these core values or not.
The business model that sets Zara apart from other clothing retailers is how rapidly the company changes stocks and releases new product lineups. The company averages 12-16 collections annually which equates to more than one lineup a month. Due to stock being limited and the rapid production Zara brings forth, their items are viewed as exclusive promoting further business. Their customers are happy knowing that their specific article of clothing is more “rare” due to only having an average of a two-week window to purchase the clothing. The company specifically targets current trends and has them in the store within 30 days. This maintains the brand’s uniqueness and relativity in fashion.
b) Zara can focus on expanding and increasing the number of outlets in Asian countries such as China and India. The scope of development is very high and the demand for fashionable clothes is increasing at a very fast rate. But it will have to focus on other local competitors who provides the latest fashion at a cheaper rate. As Zara is a known brand, so it would be easy to increase awareness among the consumers through advertisement, promotions and celeb endorsements.
The fundamental business strategy of Zara is very simple which is linking customer demand to manufacturing, and liking manufacturing to distribution. Zara has been running their business in fashion industry which is susceptible to seasons and quick changing customer tastes. Zara has been approached to and considered their business as a perishable commodity business just like a fresh baked cake or bread to be consumed quickly.
Zara was founded in A Coruña, Galicia, Spain in 1975 by Amancio Ortega. In the beginning Zara clothes offered affordable replicas of expensive designer clothing. In the 1980s Zara’s founder Ortega began to make adjustments to Zara’s manufacturing, distribution, and design strategies to help create a responsive supply chain. These adjustments to Zara’s supply chain proved to be successful and allowed them to open retail stores in more than seventy three countries. Today Zara is the world’s largest fashion retailer which is due to its vertically integrated value-chain and responsive supply chain.
There is a saying: “Monkey see, Monkey do.” In today’s world, it seems that it’s only natural for humans to imitate what they see works in society. Though there are beneficial facets for imitating, there are also damaging consequences. Counterfeit is a strong word that describes companies that forge bills or create fake fashion goods, electronic items, and even pharmaceuticals. For the purpose of this research, the focus will be on the different aspects of counterfeiting goods in the fashion industry. Though fashion has continuously changed, been reinvented and some even being dubbed ‘classics’, one thing will always remain: a designer’s ability to express creativity. Fashion is mainly dictated by trends whether they are past, present, or future, making counterfeiting in the fashion industry is a very lucrative, multibillion industry. The current economic climate allows for luxury to be almost ludicrously unaffordable. With high demands for low cost items, the market thrives on consumers’ obsession with spending while saving at the same time. With the 21st century’s expectations and having the need to be worth something, it yields an unstoppable industry. This is especially prominent among women because they are predominantly image-based and willing to hunt for the perfect equilibrium between trend and price. The desire to appeal a certain way induces counterfeiting. Fashion savvy shoppers long for that moment when they can afford Christian Louboutin, Louis Vuitton, Hermes, and other rare or out of reach goods. The more unobtainable the product, the more desirable it is. It is not a surprise that many are willing to purchase the counterfeit than the authentic due to its resemblance and price. Counterfeiting affects the industry be...
store managers and frontline personnel, play a critical role in the context of Zara’s business model. Using customised PDAs, store managers constantly communicate customer feedback, either hard data such as orders and sales trends or soft data like customer reactions to a new style or the “buzz” around a new design, to Zara’s HQ where the feedback is used by designers to quickly develop new garments based on customers’ wishes (Ferdows et al., 2004). Frontline employees assist their superiors in collecting the feedback. Zara’s store managers and shop assistants thus close the communication loop between shoppers and Zara’s HQ (Ferdows et al., 2004) and therefore contribute hugely to Zara being able to first understand what customers like and then design and produce it (Buck, 2014). Accounting for their key role, Zara pays store managers an above-average salary and up to 100% of their salary in bonuses if they hit sales targets (Ruddick,
This paper describes the various aspects of the Zappos case. The objective is to evaluate the depth analysis of the Zappos strategy. It enables to determine the Zappos strategy, business model & marketing strategy, and smartness of the Zappos acquisition.
Organisational culture is one of the most valuable assets of an organization. Many studies states that the culture is one of the key elements that benefits the performance and affects the success of the company (Kerr & Slocum 2005). This can be measured by income of the company, and market share. Also, an appropriate culture within the society can bring advantages to the company which helps to perform with the de...
It is said that people are the greatest assets to an organization and it is their beliefs, customs, perspectives, attitudes, and values that constitute to the culture that prevails in an organization. Culture, a very common word in today’s world, plays a very vital role in organizations and it not only affects an employee’s professional development but also their personal harmony. Culture gives a sense of belonging to people, a sense of who they are and how productive they are at their work place. It helps in interacting with each other at a work place.
In the Fashion, Design and Luxury world, the protection of the intellectual property, especially brands, logos, and trade dresses are of the highest importance. This topic is regularly discussed in the daily life of business in this sector, and is unfortunately usually a source of problems or at least, of risks that need to be addressed. Since we plan to work in the fashion industry, it is of utmost importance to know and be aware about these issues.
Corporate culture is the shared values and meanings that members hold in common and that are practiced by an organization’s leaders. Corporate culture is a powerful force that affects individuals in very real ways. In this paper I will explain the concept of corporate culture, apply the concept towards my employer, and analyze the validity of this concept. Research As Sackmann's Iceberg model demonstrates, culture is a series of visible and invisible characteristics that influence the behavior of members of organizations. Organizational and corporate cultures are formal and informal. They can be studied by observation, by listening and interacting with people in the culture, by reading what the company says about its own culture, by understanding career path progressions, and by observing stories about the company. As R. Solomon stated, “Corporate culture is related to ethics through the values and leadership styles that the leaders practice; the company model, the rituals and symbols that organizations value, and the way organizational executives and members communicate among themselves and with stakeholders. As a culture, the corporation defines not only jobs and roles; it also sets goals and establishes what counts as success” (Solomon, 1997, p.138). Corporate values are used to define corporate culture and drive operations found in “strong” corporate cultures. Boeing, Johnson & Johnson, and Bonar Group, the engineering firm I work for, all exemplify “strong” cultures. They all have a shared philosophy, they value the importance of people, they all have heroes that symbolize the success of the company, and they celebrate rituals, which provide opportunities for caring and sharing, for developing a spiri...