Essay Strategic Management for Zara

3093 Words Nov 17th, 2010 13 Pages
Ramla Shahid

Strategic Management

Part 2- Company Strategic Analysis

Submission Date: 18th March 2010



Introduction 3

Current & Future Macro- Environment of the Retail Industry 4-7

Zara’s current position within the competitive marketplace 8-10

Strategic options and recommendations for Zara
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However this represents a slowing down of annual growth and with operating costs and the cost of credit set to rise, The retail sector faces challenging times. Almost 8% of the Gross Domestic Product (GDP) of the UK is generated by the retail sector.

But the global economic downturn, tight credit saw the country slide into recession in the back half of 2008, which resulted in one of the lowest quarter-on-quarter growth rates since the last recession in the early 90s. This resulted with people with less spending power which effected on the sales in retail. But since the middle of 2008, people started to save/pay off debts more and spend less even. Those circumstances might benefit the cheap fashion sector. Less money will be spend on designer clothes as well as accessorises.

These changed present both opportunities and threats or constraints to strategic managers. The gross national product (GNP) of economic growth for the retail industry has a moderate and consistent growth GNP generally produces a healthy economy in which business find increasing, demand for their outputs because of raising consumer expenditure.

Currency exchange rates, however, can also be affected by international economic conditions. The increase in interest rates and unemployment has made a steady retail sales growth. Unemployment has climbed consistently since mid-2008, reaching 7.8% by 2009 and it could rise to over 10%

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