The conditions that the economy environment included, that is, the inflation, employment, monetary and fiscal policy… in a specific sector or region. The macro environment is closely linked to the general business cycle, as opposed to the performance of an individual business sector.
-Physical factors: municipalities growth, population go to the regions are more developed, so we have to considerer what are these areas to create there our business. Climatic diversity, Zara knows this diversity so the clothes that it produces will be linked with the climatic of the region, for example, the North is cold, so the winter´s season arrives before.
-Economy factors: world economic crisis that resulting in a change in the consumer income, if the
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One advantage of this globalization is the possibility of creating international fashion chains accompanying consumers wherever they are. Inditex took advantage very well that factor.
• MICRO:
It is formed by forces close to the company that affect its ability to satisfy customers, the business, consumer markets, marketing channels used, competitors and public.
Zara 's main competitors are: Sfera, H & M, GAP, Mango, Pull & Bear and Stradivarius.
In the graph we see as Zara drink market both national and European business. Where in the domestic market, its main competitors in terms of volume stores are the same Iniditex group, Pull & Bear and Stradivarius. Although Sfera and Mango can also be considered great rivals. Moreover, in the European market, Zara 's main competitors, GAP and H & M. Mango and Sfera and they were in the domestic market, they cease to be European.
Rivalry between competitors
The number of competitors is high (and are distributed locally, nationally and internationally)
The textile sector has a slow growth (because it is a mature sector)
And that exit barriers are high in production, but low distribution
Barriers to
The majority of the population could no longer have strong consumer demands, causing the producing
Mustafa Salkic Ms. Barton ELA 2, 1st hour 8/27/15 The Great Depression The great depression was one of the worst things ever witnessed in this country. So what caused all of this
Argument against Minimum Wage Claim: Raising the minimum wage could lead to bigger problems. Support: The US would lose 500,000 jobs (Congressional Budget Office report, Economist and public policy experts ) Increased consumer prices, driven by companies offsetting increased labor cost (Econo-mist and public policy experts). A possibility higher minimum wage would attract more experience workers that would stay in a low paying wage longer, which makes young people and other people with lim-ited work experience not land entry-level jobs (Economist and public policy experts).
That is how detrimental the economy was and how the rich got richer and the poor stayed
Thus, the middle class is under quite pressure which is still likely to increase and the middle class would have not spent more money in other consuming, which is bad for cycle of
Easy accessibility to goods and services allow productivity to flourish, which in turn bolsters our economy. However, in order to keep up with the ever increasing demand for
This stock market crash along with overproduction and decreased consumer
Their main competitors are Macys, Nordstrom and even range to smaller departments like Sephora, Bath and Body Works, and other drug stores. They also compete with bigger companies who offer mass products like Walmart and Target. (2009/17) Ulta Beauty is affected by their competitors in a vigorous battle to offer the cheapest prices and best products. For example, Macy's is one of Ulta's biggest competitors and they can cause dips in Ultas stocks.
In spite of that, barriers to entry in an oligopoly market are high. The prime barriers are economies of scale, access to costly and sophisticated technology, patents and tactical measures by existing dominating firms devised to hinder new firms from entering the market. In addition, other sources of barriers include government regulation favoring incumbent firms making it difficult for nascent firms to
EXECUTIVE SUMMARY Zara can be identified as one of the largest international fast-fashion organizations which is owned by the fashion group Inditex. Their first store was opened in 1975 and from that point of time, they have had an unstoppable growth throughout the years as up to now. After 42 years of operations, today Zara has been able to expand themselves with 2169 stored over 82 countries all over the world. Rather than they were a high fashion brand in the country, Zara has focused themselves as a fast fashion brand where they will change their fashions at a great pace where no one can reach them. Also, the most attractive thing is that all those latest fashion designs are introduced to the public at an affordable price.
In terms of differentiation, ZARA’s “fast fashion” philosophy is unique, which create demands and lead the trend in the garment market. They respond very quickly to the demands of target customers and focus on young fashion. In production, they design quickly, production quickly and update quickly.
Apple products so popular, it makes a lot of money. The economic environment of apple that affect consumer buying and spending and affect the wealth of an area include income distribution inflation, recession and spending patterns. A business cycle is the pattern of the level of business activity. Business activity can move from prosperity to recession to recovery.
(BARNAT, "Concurrent Control") As fashion trends tend to change every now and then, Zara could use this control to work on latest trends and future trends. This to ensure that employee work activities produce the correct results without any major wastage and unacceptable services. This also allows Zara to be up to date with its fashion knowledge and also sustain its position in the
1. In order to understand the success of Inditex’s best brand, Zara one has to understand their strategic choices, and at its core this revolves on having a good understanding of who Zara targets, and what makes this brand attractive. Zara’s most important target market can be understood by the use of demographics, they target young (18-40 year old) women, who are price-conscious with a mid-range income, and very sensitive to fashion trends.
Crisis: good vs. bad The statistic of crises that occurred after the WWII is tremendous: 139 financial crisis occurred in the period between 1973 and 1997, while just 38 crisis occurred in the period between 1945 and 1971. According to (Dicken, 2011), 255 recessions disrupted 17 western economies in the period from 1870 to 2006, while two-thirds of them lasted less than one year, and 33 of them endured over two years. After the “golden age” and economic growth period from the early 1950s to the early 1970s, the world economy´s patter was uneven with lots of growth (1950s to 1960s, 1994-1995, and 2000s) and recessions (1990s, 1998-1999) (Mitra, 2012). Moreover, the collapse of the banking system in 2008 has been the biggest global economic crisis