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Zara Case Study (Stakeholders (Inditex, International Suppliers, Lorena…
Zara Case Study
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Key Problems
Market Expansion
Why?
This is a problem because Zara tened to use franchises in countries that were small, risky or subject to significant cultural differences. When instead they should have been looking to develop franchises in countries that are already steady.
Zara has been offered to acquire foreign chains but denied them due to overlapping store networks. This causes a lost of business and more competition.
Management
Why?
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Prices were high is Northern European countries due to management's marketing mix that they could not handle.
Relevant Facts
Inditex
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Net income of 34 million euros on revenues of 3,250 million euros
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Possible Solutions
Marketing
Using the internet, which would tie into IT for product managment
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IT Services
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Set up integrated ERP, CRM AND SCM
Proposed Solution
Online presence really pulls both the needs of marketing and Zara's technology together. Advertising that connects, and inventory that is accurate and customer comments and feedback on their online platform could really transform their brand. These things also effect the stakeholders directly in positive ways.