Zara is a U.K. based fashion company cum apparel that tasks itself with designing, producing, distributing apparel and accessories through its extensive retail network. The Company hitherto renders women, children, and men wear (Bui et al. 2019, pp. 46). Some of these wears include coats, dresses, skirts, shoes, handbags, jackets, suits, jeans, and jewelry. The CompanyCompany ranks were high among firms that deal with various fashion products. Inditex, which is the largest fashion group in the world are the known owners of the firm. Zara has a major objective of ensuring its products are peculiar from those of other firms. The differentiation criteria are a major marketing strategy for the Company (Ivancic et al. 2017, pp. 55). Zara firm has mastered the market segmentation process. It has a perfect way of analyzing the target market. It enhances the competition process through demographic statistics, locational aspects to ensure that they cater to the specifications of the target market. The following analysis takes the form of the S.O.S.T.A.C. model, analyzing the move to establish a new market condition in Kenya. It includes analyzing the situation, objectives, strategy, tactics, actions and the final control of the new business venture. The P.E.S.T.E.L. model is an essential factor that helps in analyzing the macro-environmental factors that will affect the business in the new country.
Analysis of the External Business Factors for the New Venture
The consideration must be focused on securing a stable political atmosphere where business activities can thrive. Owing to the heightening global political temperature, Zara should ensure the efforts to improve its market are not thwarted by the political objectives of the new country. Political instability often leads to poor customer response and low market. It should, therefore, be made a core factor as the business planning takes place.
It is also important to consider the economic considerations in Kenya before Zara opens new stores in the country. The growth indicators should be able to reflect a positive economic environment with a moderate per capita income and an increasing G.D.P. If the factors are not made considered. People may fail to have the purchasing power, and the business may lag in terms of attaining profits.
Social and Technological Factors
The social environment is also important in the business world. Zara should focus on the social needs of the social class. If the majority comprises of the youthful population, then the models that appreciate good fashion will have a positive effect on the market. The technological factor should also be included because most people are up to date with the modern technological revolution practices. The products should thus be up to date with the latest technologies.
Various factors in the natural environment may also affect the operations in the new country. Such include the climatic conditions. In warm areas, light clothing will make more sales. In cold areas, heavy clothes will be in high demand. The CompanyCompany should thus consider the natural factors that may influence normal operations. Constantly rainy or flood areas may have low customer turnout as compared to an area with fair weather conditions.
The legal environment is also key to business performance. Zara should establish various regulations in the new country that may influence business performance. Such includes taxes and licensing procedures. Some countries have very demanding and expensive regulatory frameworks. The firm should, therefore, ensure that their performance is not affected by the legal factors in the external environment.
A move to introduce an outlet in Nairobi, Kenya, a country foreign to Zara's operations calls for a cautious and well planned out approach and strategy. That is geared towards safeguarding its profit margins and meeting its customers' needs. Kenya, a fast-developing country in the African Continent, is regarded as one of the most varied lands on the planet, the country is home to 53.77 million people ranking 27th in the world (Bui et al. 2019, pp. 46). For Zara to woe the customers and gain their loyalty, a lot has to be done, bearing in mind that the country has a particular preference for wear and often dress conservatively. The urge to stand out and be exquisitely dressed will be a plus for Zara in its bid to establish a branch in Kenya. The target market is diverse in this case, being that the products offered range from the young to the elderly. The textile and clothing sector in Kenya is among the most promising industries that can boost the spirit of industrialization. With the increased national population, the industry has a great potential to boost the economic sphere of the country (Olson et al. 2018, pp. 68). Challenges are facing local fashion designers and small tailoring houses in their bid to integrate the clothing to Fashion Value Chain (F.V.C.).
Various challenges affect the operations of the company. They include a lack of proper policies that are in harmony with the goals and the institutions of the company. The weak external business environment increased production costs and many more. With these said challenges, there is need for an urgent, vibrant and holistic approach to the current financial and situational of the Kenyan market bearing in mind the flaws above, Zara's entry in the market will be appropriately timed and using the evident challenges as reference points can help Zara improve and outdo the Kenyan local fashion houses and companies. The Kenyan market, thence, being a vibrant one, is in dire need of services that can match up to their expectations, taste, quality, and convenience of services rendered.
Advertising and Strategic Store Location
A strategic business location is one of the factors that promote business success. The location should take into consideration the demographic factors and the marketing of the region (Rezaei et al. 2017, pp. 147). Marketing is important to help in enhancing the publicity of the Company'sCompany's products. For Zara, meeting the customers' expectations will not be an uphill task since there is an evident void left with regards to the customers' satisfaction. Opening a company or store in Nairobi, the country's capital city will be a sure path to rendering timely and convenient services since there is a ready and available market in addition to being a centralized hotbed of business ventures and investments. With Zara's high quality and pocket-friendly products, high are the chances that customers will be attracted to its services.
The Company's achievements have been endowed to the specialization of various units of productions. Each is done in a separate chain, thus enhancing perfection in the way the business products are produced. There are various stations involved in dyeing, printing and stitching, weaving, and other functions. The factor has been an essential attribute to the day to day operations of the firm. Zara's mission states, "Z.A.R.A. Textile is devoted to achieving consistent improvement in the system of providing products & services to the customers through On-Time Delivery & Enhancing Customers Satisfaction using Quality and Value." Zara also has a vision in which the Company'sCompany's prospective developments and plans are highlighted in a nutshell, "To attain market leadership through unmatched quality, a diverse and unique product mix, empowered employees, world-class systems, and the highest ethical and professional standards." These statements keep Zara as an enterprise conscious of the competition in the industry, intact and on the market radar. The Company'sCompany's day to day strategies and services are pegged on the mission and vision since they are regarded as the driving force behind their services.
Zara can use a Turnaround time (T.A.T.) in line with its aims and desires, more so, on its time delivery policy, to make its products available in its stores earlier. This means approximately two weeks before the launch. The average T.A.T. is usually considered at around 3-6 months. That will ensure that the customers' agitation to possess new products is satisfied. In conjunction with that, Zara can also introduce enticements such as offers and gift hampers for its customers, and this will create a liking for the CompanyCompany by the customers since they will feel appreciated and considered by the company. Initiating a service response program can also help in retaining the customers (Chaffey and Smith 2017, pp. 77). That is to say that the customers' opinions, suggestions, and evaluation of the Company'sCompany's services will be considered. That, in turn, will help the Company'sCompany's marketing and strategic team in resolving, bettering, and ensuring that possible voids are filled, and customers' needs are met.
These are well thought, planned and laid out tactical measures in any given firm or CompanyCompany aimed at governing its operations and rendering of services to the customers while at the same time ensuring that the CompanyCompany stays ahead of its competitors. The strategies employed in marketing are usually significant because they help in speaking to the intended audience who are the target market (Chaffey and Smith 2017, pp. 77). Various specifications can be considered during the choice of a marketing strategy. It should always be a measure that can help speak to the target audience in the most appealing manner.
The targeting strategy involves the identification of the market size and the specification involving the specific group. The adoption of different strategical measures of handling the issues involves understanding the goals and the aims of the Company. It also involves the segmentation of the target market (Fedato et al. 2017, pp. 300). The market can be decided in the form of populational statistics. Such helps in identifying the popular age group and their demands in the form of the products produced by the Company (Hayati et al. 2018, pp. 629). If there are many youths, then producing attires that suit youths best will be the best decision to take. Other ways in which the target market can be identified and analyzed include the study of the location and the climate around it and cultural aspects. The cold regions will not purchase revealing clothes.
Similarly, hot regions cannot purchase heavy clothes. Joint incorporation of other industries will be an added advantage in Zara's provision of services (Bui et al. 2019, pp. 46). Companies with courier services, namely: G4S, Fargo Couriers, among others, will ensure that products are safely parceled to customer destinations efficiently and timely.
Tactics are important. Zara should include the best formulation of ideologies to make sure that they penetrate the new market in Kenya. Tactics help in developing an appropriate marketing mix and communication strategy. The strategic placement of the CompanyCompany is the country's capital city, which ensures that the customer-company contact is high since there is high and viable contact in terms of business ventures and needs to satisfy local customers in the supply chain (Smith 2019, pp. 44). Among the tactics that have seen many firms prosper is the implementation of digital marketing. The contemporary world has so many methods of reaching potential clients. That can always occur through interactive marketing where the firm interacts with the clients on social platforms, social media marketing such as Facebook, Google, Twitter, and many more. All these methods of marketing are important tools of business success and tactics that can help Zara increase their marke...
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