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Competitve Advantage & Global Strategy Analysis of Zara

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A complete analysis of Zara’s global strategy and competitive advantage

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BPP Business School
Coursework Cover Sheet



Module Name Global Strategy and Sustainability
Student Reference Number BP0271709
(SRN)
Assessment Title Competitive Advantage and Global Strategy Analysis of ZARA



Declaration of Original Work:

I hereby declare that I have read and understood BPP’s regulations on plagiarism and that this is
my original work, researched, undertaken, completed and submitted in accordance with the
requirements of BPP School of Business and Technology.

The word count, excluding contents table, bibliography and appendices, is 2349 words.


Student Reference Number: BP0271709 Date: 30/5/2023




1

,Table of Contents

Introduction 3
External & Internal Analysis 3
Strategy in the Global Environment 8
Corporate Strategy 9
Conclusion 11
Reference………………………………………………………………………………………………………………………………………12
Powerpoint Presentation……………………………………………………………………………………………………………13




2

, Introduction
Zara is one of world’s largest fashion companies which belongs to Inditex group. It was
founded by Amancio Ortega in Spain in 1975. Gradually the brand became popular and later
by 1990 Zara was expanded to countries like Portugal, USA and France. Currently Zara is
being operated in 96 countries and has nearly 3000 stores across the globe (Wikipedia, 2023).
We will be discussing about the external & internal operating environment of Zara in this
case study including it’s global strategies.


Task-1| External & Internal Analysis
Porter’s five forces

Weak Power of
Suppliers
Low dependency on
suppliers
High alternative of
suppliers




Low Threat of New High Industry
Entrants Rivalry Low Threat of
High capital Strong & high Substitute
requirements competition Less attractive
Uneasy access to Low product More time consuming
distribution channel differentiation




Weak Power of
Buyers
High number of buyer
& purchase volume
Low alternative due
to rare business model




Figure-1
Threat of New Entrants
High capital that is required for a company to come up with across all the function to match

3

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