ALFORQUE, GRACE PUA, PEARL VERSOZA, SHEILA

History & Background .

Current Competitive Situation • China currency policy • Focus on global expansion • Fast fashion & Customization • Technological advances & E-Commerce • Global Sourcing .

Problem Identification How is Zara going to expand successfully all over the world with the same level of speed and instant fashion? .

External Environment • Growing apparel retail market in Asia • Growing online sales opportunity • Rising Labor cost in European region .

Internal Organizational Environment • Differentiation • Unique Marketing Strategy • Materials Management • Strong distribution network • Zero advertising • Overdependence on the European market • Reliance on local designers .

India. Malaysia. Taiwan and Indonesia) Growing online sales opportunity THREATS Rising Labor cost in European region China currency policy Focus on global expansion of other retailers .Strategic Factors Analysis STRENGTHS Differentiation Marketing Strategy Materials Management Information Systems Strong distribution network Zero advertising WEAKNESS Overdependence on the European market Reliance on local designers OPPORTUNITY Growing apparel retail market in Asia (China.

Such elements are: Speed in Design and Production Strong Logistics Customer Service/Response Stores’ Visual Merchandising 25% 25% 30% 20% .Critical Success Factors CRITICAL SUCCESS FACTORS: Behind the success of Zara are four strategic key elements that are always considered by the company.

Production and distribution shall be done in each hub.” .Alternatives Alternative #1: “Create production and distribution hubs in strategic regions to serve the stores or outlets in neighboring countries.

and strengthening the communication facilities. but retain their production center in Spain.Alternatives Alternative #2: “Outsource the distribution for fast delivery of stocks to stores in other countries.” .

thereby decreasing manufacturing costs  ensures fast design and product development  fast turnover and delivery of products to retail outlets .Recommendation Alternative #1: “Create production and distribution hubs in strategic regions to serve the stores or outlets in neighboring countries. Production and distribution shall be done in each hub.”  maximize production by saving costs on shipments. labor and raw materials.

Determine the expansions or manufacturing hub location.Implementation. Evaluation & Control 1. .

Evaluation & Control 1.Implementation. . Headquarter which is in Spain will need to delegate Officers and workforce teams to be placed in each hubs but some staff and labor needs will be outsourced from the nearby regions where Zara’s manufacturing hubs are placed to minimize cost.

Technological trends will be exploited. Evaluation & Control 1.Implementation. expansion of online stores . Each hub will be treated as Business Units 2.

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