Zara Fast Fashion From Savvy Systems Coursework

Zara Fast Fashion From Savvy Systems - Coursework Example BBC in a business article described Zara’s advancement into the global market as beating expectations in each quarter (BBC, 2010). Tiplady described the rising of the company past the former leader in the industry, H&M (Tiplady, 2006). She dramatically expressed the rise as beating off the pants from the leader and everyone else. Fox described it as a global achievement story (Fox, 2011). The company’s innovativeness has been hailed as the spine of the Spanish success story (CNN, 2001). The image of the firm has looked incessantly looked up in the global stage. This is convoyed by a steady elevation of revenue indexes. The company’s size trebled from1996 to 2000, and then jumped from $2.43 billion in 2001 to $13.6 billion in 2007. By August 2008, sales overtook Gap, making Inditex the global leader in apparel retailing (Hall, 2008). The growth of the company has been proped by seven other brands, and Zara is unquestionably the firm’s crown jewel and growth engine, accounting for roughly 2/3 of sales (Murphy, 2008), opening a store a day and entering new markets in 68 countries so far. The chain’s profitability is among the highest in the industry (Sull and Turconi, 2008). The growth of the company is deemed to emanate from three innovating characteristics. All analysis reviews cite short lead times, lower volumes and more styles, as the drivers behind the company’s achievements. ... Additionally, the company strives to respond with swiftness to the demands of the market. The company’s visions are to be a part of the customer’s life, achieve a customer’s experience inside its shops and achieve a social action perception. Additionally, the company aims to contribute to the sustainable development of the society and the environment. Situational Analysis The apparel industry is a very dynamic industry. What is in demand today may be junk tomorrow. Unlike other industries, apparel manufacturing is work intensive rather than resource intensive. It is highly subjective to political factors; laws are passed which significantly affect the industry. Other dynamics include changing social trends, market development and global economic trends. Environmental Analysis The environmental analysis utilizes the PEST model. This evaluates the political, economic, social and technological factors affecting the apparel industry (Thompson & Martin 2005, p. 86). T he labor-intensive nature of the industry makes it dependent on such factors as employment laws and consumer protection. The employment laws are significantly complicated in developed countries. Regulations within this law which have hit the industry include the minimum wage and health protection laws. Coupled with globalization, this has led to companies shifting their production to developing nations. Investment in PPE has reduced across the industry. Developing countries have in turn opened up their countries in an attempt to boost FDI. There has been an improvement in the nature of international commerce laws which has attracted many companies to offshore production. One of the most devastating economic factors to the industry is demand. In 2007, demand in the