Case Study of Zara: A Better Fashion Business Model

Zara is one of the most well known brands in the world and is also one of the largest international fashion companies. They are the third largest brand in the garment industry and are a unit of Inditex. It their flagship range of chain stores and are headquartered in Spain. Zara opened its first outlet in Spain in 1975. The headquarters of the company is based in Galicia. There are more than 2600 stores across 73 countries in the world. The Zara clothing line accounts for a huge bulk of its parent group’s revenues. There are other clothing brands owned by Inditex such as Kiddy´s Class (children’s fashion), Pull and Bear (youth casual clothes), Massimo Dutti (quality and conventional fashion), Bershka (avant-garde clothing), Stradivarius (trendy garments for young woman), Oysho (undergarment chain) and Zara Home (household textiles). Inditex owns all Zara outlets except for places where they are not allowed ownership of stores (that’s where Franchises step in).

Zara is renowned for coming up with products on a short timescale instead of taking forever. They are known for taking around 2 weeks to develop products and have been known to come up with around 10,000 new designs every year (which is an industry record). They have bucked the trend by making productions in Europe instead of shifting their entire production to Third World or Developing countries. However some of their clothes are manufactured in parts of Asia due to the fact that they have a longer shelf life. They make most of their own products inside Spain or other European Countries as they own a large number of factories in both Spain and Portugal.… Read the rest

Case Study: The Decline and Fall of General Motors

Failure to innovate is the key reason to the downfall of Old General Motors. Innovation is the process whereby the management team of an organization is charged with the responsibility of introducing something new, which might be a new idea or a methodology or rather, a contrivance to facilitate the operational concerns and production. The Old General Motors failed with innovations in the company. These innovations were needed to ensure that the Old GM able remains competitive, and the company was able to manufacture cars that are in line with the client’s demands. This is related to the Old GM’ field of business to ensure that the organization do continue to produce the respective consumer centered product. The manufacturing industry such as the General Motors, innovation ensure that the output they deliver to the consumer do meet their needs, and expectations in a way that is realistic and makes their product to have a preference by the consumers against other same need satisfying product.

The fall of the Old General motors’ in this context was initially by the lack of personal innovation. The Organizational management was desperate for people who could see things in a different perspective. This would quickly size up the problems and come up with creative solutions to pinch the organization was facing. The failure of the “Old GM” to innovate made the organization less indispensable to consumers of the company products and other key personalities, who preferred the company output. This was both in the organization and outside its walls.… Read the rest

Porter’s Five Forces Analysis of Hewlett Packard (HP)

Hewlett-Packard is categorized in the Diversified Computer Systems industry of the Technology sector. Within the Computer Systems industry Hewlett-Packard has many high profile competitors such as: Canon, Dell, IBM, Apple, and Cisco Systems. The Computer Systems industry contains a large range of products including but not limited to: desktop computers, personal notebooks, printers, scanners, cameras, and different software programs. Most companies, such as Dell, Apple or Gateway, tend to be limited to a small product range. Compared to other industry competitors, Hewlett-Packard has a wide variety of consumer products. This gives HP a competitive advantage in the consumer market due to their brand name coverage in the technology industry. Hewlett-Packard offers desktops, notebooks, handhelds (pocket PC’s), monitors, home networking, televisions, digital photography, printers and printing supplies. Hewlett-Packard does not specialize in just one product line. With new technology innovations, some of their previously lesser known lines have grown to be some of their largest. In the past five years, Hewlett-Packard’s imaging and printing division has grown substantially due to the popular home photography printing.

Porter’s Five Forces Analysis Competitive Force 1: Rivalry among Existing Firms

Competition among existing firms is one of the biggest threats for Technology Industry companies. There are many large companies with a strong foothold in the technology industry, making each competitor’s revolutionary idea a factor in the consumer’s decisions. In the past ten years, the technology industry has grown exponentially. The size, quality, functions and appearance of all technological devices and software are continually improving. A good example of the technological revolution is the ever changing photography world.… Read the rest

Starbucks Porter’s Five Forces Analysis

Starbucks Coffee Company’s success in the coffee business echoed resoundingly across the globe. Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 16,635 stores in 49 countries, including 11,068 (6,764 Company Owned, 4,304 Franchised) in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company’s products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks marketed itself as the “Third Place” – a place where people can go aside from home and the workplace. The rapid growth of Starbucks has become a success story in the business world and many people are bewildered by the company’s business strategy.

Porter’s Five Forces Analysis of Starbucks

Michael E. Porter provided a framework that models an industry as being influenced by five forces. The Porter’s Five Forces analysis presents a clear view of the external conditions and the contending forces within a specific business industry. It also allows strategists to create a strategy in order to gain competitive advantage or sustain the same for a longer period of time.

Industry Rivalry

The dynamics of the industry rivalry within the specialty coffee industry has changed dramatically since 1987.… Read the rest

L’Oreal SWOT Analysis

Prior to the establishment facial cosmetics, L’Oreal can be identified as a hair-colour formula which has been introduced by a French chemist known as Eugene Schueller in 1907. It was then known as”Aureole”. Schueller formulated and manufactured his own products which were sold to Parisian hairdressers. It was only in 1909 that Schueller registered his company as “Societe Francaise de Teintures Inoffensive pour Cheveus”, the future L’Oreal. Scheuller began exporting his products, which was then limited to hair-coloring products. There were 3 chemists employed in 1920. In 1950, the research teams increased to 100 and reached 1,000 by 1984. Today, research teams are numbered to 2,000 and are still expected to increase in the near future. Through agents and consignments, Scheuller further distributed his products in the United States of America, South America, Russia and the Far East. The L’Oreal Group is present worldwide through its subsidiaries and agents. L’Oreal started to expand its products from hair-color to other cleansing and beauty products. The L’Oreal Group today markets over 500 brands and more than 2,000 products in the various sectors of the beauty business. Such includes hair colors, permanents, styling aids, body and skincare, cleansers and fragrances. Indeed, the L’Oreal Group have reached the peak that all cosmetic brands sought after. Many factors contribute to the success of the Company. Since L’Oreal was known to be France’s leading beauty company, it was international presence was so limited that many believed and had a conception of Parisian beauty as being expensive and high culture.… Read the rest

Ansoff Matrix Analysis of Adidas

Adidas is one of the leading companies in the world that specialize in the production of wide variety and high quality sportswear and sports equipment. The head office of the company is located in Germany and has good brands through which it promotes its products. The company is carrying on its operations by using the three brands names of Adidas, TaylorMade-adidas Golf, and Reebok. The company is widely operating in Europe, North America and Asia. Adidas has a strong work force of around 39,000 employees working in different parts of the world. The company has its operations in Europe, US and Asia in more than 150 subsidiaries and are purely focused on manufacturing.

Adidas focuses on sports and the brand specializes in footwear, apparel and accessories. Adidas is very popular with the sports division where the brand image of the company is promoted in sports like running, football, basketball, tennis etc. Reebok is mainly focusing on the style and its products are related to sports, fitness and casual footwear, apparel and equipment. The brand TaylorMade-adidas Golf offers products related to golf clubs, accessories, footwear and apparel. Majority of the goods of Adidas are manufactured by other companies. In order to minimize the cost of production, Adidas has outsourced its major portion of manufacturing to a different company situated in Asia.

Ansoff Matrix Analysis of Adidas

The Ansoff matrix has four strategies based on the products and customers. Along with the strategies and their positive implications, there are also few negative factors for these strategies.… Read the rest