Zara Strategy Essay Example | Topics and Well Written Essays - 3250 words

Zara Strategy - Essay ExampleEconomicIn spite of the eurozone crisis and economic recession, UKs GDP has reduced to a mere 0.2 % compared to the boilers suit industry growth, which has dropped by 0.6%.N According to eminent economists, the unemployment rate will increase to 9% in the coming two years. Around two million mickle will remain unemployed.The retail clothing market of UK is constantly increasing. According to Key Note report (2012), the UK market showed a 3.3% increase in 2011, and gross revenue reached 43.1 billion pounds. Womens garments were the largest sector in terms of sales revenue followed by men and childrens sector (Chakrabarti, Subramanian, Meka, & Sudershan, 2012).SocialThere has been a 7% rise in age group which represents the working population. Because of this, more people are now including formal clothing as their daily cod. This means that in future, Zara may also be required to change its portfolio, in order to match the growing needs of this ageing po pulation.Due to the current economic crisis and calculate deficit, the purchasing capacity of the consumers has reduced. Now, realizeable and normal living standard has become a challenge for the local people. To get rid of the difficult financial condition, the UK government activity has taken the policy of managed migration.... Technology Latest technological advances such as RFID, electronic data exchange and ERP, are used by most of the retailers in UK to decrease operation costs and enhance the value chain process (Pettigrew, 2006). According to the Science and Innovation Investment Framework (2013), there has been only 2% increase in investment in technological advances. This has made the investment condition in UK very inflexible Environment In order to pile up the environmental norms, set by Kyoto Protocol, the industries need to reduce the percentage of carbon emission to a minimum of 9% from the present rate. According to the government protocol, the unlike countries in UK need to decrease their Carbon footprint to a minimum of 20% in the coming two years (Unfccc, 2013). Thus, in order to sustain in the market, Zara will have to follow the protocol in its value chain. Legal According to the economic freedom journals index, UK has been ranked ordinal in terms of free economy (Index of Economic Freedom, 2013). It has also been praised by Wall street Journal for its business and economic sustainability. To solve any mash related issues, the country strictly follows the rules and regulations of European Union Labour Law. This indicates a necessary change in the HR policies and regulations of Zaras business process to come the EU Guidelines. Porter Analysis The major categories of apparent industry in UK are mens wear, childrens wear, and womens wear. The industry value bottom be calculated by using Retail Selling Price (RSP). Total Revenue of the Industry CAGR Womens wear Mens wear Children swear $54,495 million (2011) 2.1% 59.2% 26.9% 13.9% (So urce Marketline, 2012b) Growth potential of