Posted: February 20th, 2017

Describe and evaluate Zara’s strategic issues around the need for a new distribution warehouse outside Spain and make recommendations regarding what it’s strategic decision should be with regards to opening the new distribution warehouse, or not.

Describe & critically evaluate Zara’s Business Strategy-    Start with PESTEL (scan the external environment)-    Porter 5 forces-    Changing dynamics in the developed market(Target 2nd to 1st world countries)-    Internal analysis from case study (SWOT)-    Talk about change of leadership issues-    Analyze resources and capability-    Value chain analysis (low support services and cost)-    Vertical integration in manufacturing-    Manufacturing based on customer flexibility-    IT system (RFID, EDI)-    Try to show that Zara created and maintain competitive advantage(An advantage that competitor cannot copy)-    Michael E Porter (Generic strategies), Ansoff Matrix, Bowman strategies-    Zara’s business model establish with western Europe (Advantage) (Manufactured in Portugal)** No need to explain what is the different strategies. But rather explain how to use it for Zara.2.    Describe and evaluate Zara’s strategic issues around the need for a new distribution warehouse outside Spain and make recommendations regarding what it’s strategic decision should be with regards to opening the new distribution warehouse, or not.-    Use Porter’s generic strategic model-    Analyze using Ansoff Matrix and BCG matrix-    May use other theories to discuss global structuring and operations (i.e. Bartlett & Ghoshal)