Strategic Perspectives Essay Example | Topics and Well Written Essays - 4000 words

Strategic Perspectives - Essay Example The paper also reveals the strengths, opportunities, weaknesses and threats of the Company. The value chain analysis and the resource capability analysis of Zara reflect the systematic and effective management of the products and services which has helped the company to achieve a successful position in the retail industry. This paper also provides insights on the current issues regarding the violence of the CSR activities by the company. It has been identified that the company should plan for an effective cost structure to overcome the recent problems. Recommendations have been provided using porter’s three generic strategies and Ansoff’s matrix to help the company make suitable strategies for achieving competitive advantage through market penetration and product differentiation. Table of Contents Table of Contents 3 Zara: A Company Overview 4 External Analysis 4 PESTEL Analysis 4 Industry Analysis: Porter’s Five Forces Analysis 6 Value Chain Analysis 7 Resource Capability Analysis 9 Issues related to the PR crises of Zara 10 Strategy Recommendation 11 Strategy Evaluation 15 Conclusion 16 References 17 Appendix 20 Zara: A Company Overview Zara is a well known Spanish clothing and accessories retailer. It’s headquarter is located in Arteixo, Spain. The company was founded by Amancio Ortea Gaona. It is one of the renowned brands of Inditex which was founded in the year 1975. The company had a slow growth in its initial years of operations but expanded to a great extent after the 1990’s. Zara is successfully operating in more than thirty different countries. Presently it is one of the leading fashions designing as well as manufacturing companies successfully providing services to the customers. External Analysis The environmental scanning of Zara will be done using the PESTEL Analysis. Pestel Analysis helps in analysing the issues related to the macro environmental factors (Lorat, 2009). PESTEL Analysis Factors Analysis Political UK is presently facing various problems related to high public debt, high unemployment etc. The government has taken important measures like cutting down the budget to an extent of 23 percent for media department, 22 percent for sports and culture department in order to reduce the overall financial deficit caused due to the sovereign debt crisis and the economic recession (Lynn, 2010). The Government has also planned to decrease the corporate tax rate in order to facilitate the companies operating in the country to recover from their financial crisis condition. Economic The economic recession has affected the European countries including United Kingdom. This recession has resulted in the increased unemployment rate for UK. Economists have also forecasted the future rise of the unemployment rate in the coming years. The recession has resulted in the decrease in the purchasing power of the customers as well. Thus the fashion retailers will have to face a situation of demand crunch du e to their operation in UK. Social The sovereign debt crisis along with the budget deficit in UK has decreased the purchasing capacity of the individuals and has also created a challenge in maintaining a standard life style. The working age population in UK is rising. The fashion retailers should focus on bringing a change in its product portfolio in future in order to satisfy the needs of the aging population of the country. Technological The retailers in UK are

Debenhams Strategy of Consumer Buying Behavior Essay

Debenhams Strategy of Consumer Buying Behavior - Essay Example Cultures keep on changing, and marketers need to be aware of cultural changes. Core values are the values that are most pervasive in a society. They must be enduring, and with respect to marketing, they must be consumer-related so that marketers can use them to understand consumption (Luna and Gupta, 2001, P.50). Culture is manifested by society in different forms and includes heroes, rituals, symbols and cultural values. Values are integral to the expression of culture. This stems from the verity that values are collectively shared by most people in a certain society. One of the noteworthy organizations that have a British heritage and with operations in the United Kingdom is the Debenhams. Debenhams has a global presence in more than twenty-five nations and operates more than 200 stores across the globe. Debenhams is known for its wide-ranging and unique brands that offer an immense deal of gratification to its customers. The corporation has diverse business ranging from clothing w ear, electric products, beauty products, as well as health products. This diversification has made Debenhams a market leader with yearly earnings surpassing the ?2 billion mark. To further its operations, Debenhams has embraced the concept of e-commerce through its online presence across nations. The online presence has attracted many online shoppers, ranking the corporation among the largest online retailers in the UK. The Company has over the years invested in British design through its portfolio of brands. This paper explores the cultural aspect of consumer behavior evaluating ways in which Debenhams can use them in its marketing mix (About Debenhams, 2013, para2). 1.2 Analysis of Debenhams’ strategy of incorporating culture into its marketing mix The aspect of culture is indispensable in any marketing endeavor as it heavily influences consumer buying behavior. Hofstede; a culture researcher held that culture refers to the social glue that keeps people of a certain group t ogether. Every culture has its manner of doing things, and this is what distinguishes in-group and out-group people. Culture provides a lens through which people shape reality. Culture acts as a reference guide when one intends to take a certain course of action such as buying a product (Luna and Gupta, 2001, p 50). Heroes In every culture, there are some behaviors and attributes that are highly regarded as role models. Individuals who observe and portray those behaviors to society are considered as heroes. One of the strategies that Debenhams uses in assimilating culture into its marketing operation is using such cultural heroes to influence consumer behavior. This is done by associating cultural heroes with certain brands or products (Arnould, Price and Zinkhan, 2005, P.76). Debenhams recently launched an ad campaign starring paralympian amputee Stefanie Reid in an effort to show diversity in its advertising. The campaign also features three models over 40, an elderly lady and a s ize 18 swimwear model. The company aims to turn the industry standard of young thin models. The company argues that the campaign is a reflection of its customers and demonstrates a broad range of body and beauty ideals. The company spokesman asserted that the company’s customers are not the same size or shape and thus the new lookbook celebrates diversity. The campaign aims to make people more comfortable with their bodies.