Past, Present, and Future

Ashley Cardounel |Andrea McDonald | Sophia Barnhart | Meagan Buckley | Shara Bromberg

Agenda

Zara Overview

Past/Present: Industry and Company

Future Outlook

Questions

Inditex Global Market Cap

$94.3bil

10.8bil

2013 Global Revenue

Unique Value

Proposition

Introducing Zara

€ 2,350

Stores worldwide

€

Past and Present Future Questions Overview

Introducing Zara

Past and Present Future Questions Overview

The Competition

Threat of Substitutes: Medium

Substitutes

Buyer Power

Supplier Power

Rivalry New

Entrants

Porter’s Five Forces

Past and Present Future Questions Overview

Substitutes

Buyer Power

Supplier Power

Rivalry New

Entrants

Porter’s Five Forces

Competitive Rivalry: High

Past and Present Future Questions Overview

Substitutes

Buyer Power

Supplier Power

Rivalry New

Entrants

Porter’s Five Forces

Threat of New Entrants: Low

Past and Present Future Questions Overview

Substitutes

Buyer Power

Supplier Power

Rivalry New

Entrants

Porter’s Five Forces

Buyer Power: Very High

Past and Present Future Questions Overview

Substitutes

Buyer Power

Supplier Power

Rivalry New

Entrants

Porter’s Five Forces

Supplier Power: Medium-High

Past and Present Future Questions Overview

Highlight: Zara’s Supply Chain

Zara Traditional Retail Model

Outsourced less Outsourced more

More Vertical Integration More Purchasing from Third Party Sources

Kept formal contracts to a minimum

More of a necessity of contracts because of more outsourcing

Past and Present Future Questions Overview

Highlight: Zara’s Supply Chain Advantages Disadvantages

Shorter Lead Time Lost profit - out of stock garments

Less commitment Low potential in economies of scale

More Unique Items Less potential for volume discount

Quick response to trend changes Vertical integration risk

Reduced warehouse need

Extremely high production rate

Past and Present Future Questions Overview

S W

T O

Analysis

Past and Present Future Questions Overview

S W

T O

Analysis

Past and Present Future Questions Overview

W

T O

Analysis

Past and Present Future Questions Overview

T O

Analysis

Past and Present Future Questions Overview

T

Analysis

Past and Present Future Questions Overview

Going Forward

Past Present Overview Future

High Fashion

Low Fashion

Cheap Expensive

Past and Present Future Questions Overview

• But of course, we can’t forget a critical component of the future of marketing overall…

Past Present Overview Future Past and Present Future Questions Overview

Past Present Overview Future Past and Present Future Questions Overview

Thank you

QUESTIONS

Past Present Overview Future Past and Present Future Questions Overview