2. Why We Are Here?
• Highlight what are the Strengths,
weaknesses, opportunities, threats of
• Explain the target market and active
customers of Zara
• Focus on the potential customer’s Value
Proposition and the reasons why people
• Then, analyze of marketplace and
fashion industry and position of the Zara
among the industry by regarding
• Examines financial analysis of Zara and
• Determine the strategy the firm pursues
3. Customer / Market
• Young people who want be
fashionable but at a low
• All price sensitive fashion-
• young professionals
• university students
• high school teenagers
• Big Cities
• Istanbul, Ankara, İzmir, etc.
• Target Market
• 4-40 age
• Mid-range income
• interested in fashion
• located in big cities.
4. Customer’s Value
Why customers use our and our competitors’
• Why do you think fashion has importance among people ?
• Basic needs
• External conditions.
• Self expression.
• Looking good.
• Dress codes
5. Customer’s Value Proposition
• Fashionable, affordable clothes
• Fast-changing product variety
• Large choice of styles
• Prime locations
Why our products over our competitors ?
9. Marketplace Analysis
• Young population
• 0-14 (25.5%)
• 15-24 (16.8%)
• 25-54 (42.9%)
• Big cities
• Istanbul, Ankara, Izmir, Bursa, Adana
• Upper middle income
• Highest income group (46.6%) contribution
• Lowest income group (5.9%) contribution
16. Sales growth of Zara as follow so we can
say that now it is on the maturity stage
6.16% 13.39% 10.11%
17. ZARA H&M
• Smart casual style
• Branding style is
• Prices/quality ratio is
• Better brand image
• Target market much
• Practical life
• Quality lower than
• Price/quality ratio
low (is good)
• Sales growth higher
• Target market has
20. Strategic Group Map Of Turkey Textile Industry
28. Generic Strategies
• Cost Leadership Strategy
The company has to decrease their cost, and to achieve cost advantage below its
competitors in the market. By doing this, a company is able to lower prices and performs
above the average performer in its industry thanks to the fact that the cost for the company
will be less than its rivals.
• Differentiation Strategy
Customers look at the attributes of the products other than looking at the price. To apply
this strategy, the firm has to differentiate itself in terms of its products for instance by focusing
on the quality of the products or in terms of provided service by focusing on the delivery
system by means of decreasing the lead or delivery time.
• Cost Focus Strategy
This strategy has two variants which are differentiation focus and cost focus.
Differentiation focus aims at differentiating a segment or a group by satisfy their unusual
needs and the in Cost focus, the firm seeks to achieve low-cost advantage in order to
provide the products at cheap prices and the concentration is made only for a small
number of the market segments. However, the risk of these strategies is that competitors
can easily recognise the success and may copy them
29. Environmental Factors
Organic food products have become popular, it is inevitable that consumers will extend their scope of purchase to
the organic textiles and this trend is already started as some retailers such as Marks and Spencer introduced range of
clothes made with organic cotton. As a result of the pressure on environmental issues, Zara implemented a framework
called the Environmental Management System which is the pursuant to ISO 14001 standards. This is a good
opportunity for Zara because the company can now position itself as a socially responsible for environment. In
addition, emerging trend for organic cotton can be an opportunity for Zara to strength its image and help the company
to attract customers who prefer made with organic materials.
The social factors are one of the most important factors which affect the fashion industry. Culture of the society is
viewed as the most significant factor in terms of its effects in fashion since it is different from one country to another,
even it might be different in the same country. Moreover, culture changes as time passes and these changes affect
preferences in fashion. As a result, predicting changes become difficult since taste of consumes can be influenced by
several factors, such as weather, movies, or even footballers or pop stars.The impact of this would be a threat for Zara
if they company cannot be able to adapt themselves with ever-changing nature of tastes.
Threat of Entry
Threat of entry indicates the entry barriers to an industry. Since there is several numbers of clothing companies in
the Turkey, it is a highly competitive market. This makes difficult for the new entrants to compete in this market as
there are some barriers to enter and compete in the market. One of the barriers is the need for large sum of financial
resource to compete in the market as entering requires building both tangible and intangible assets which can be
achieved by investing in advertising, customer service to build a customer loyalty as well as investing in physical
facilities for stock holding and distribution.
30. Strategic Map
year by regarding
Factories for production
and regularly control
Focus on potential customers
and giving quick response to
their changing needs
Work with the fashion
professionals a introduce
Providing strong employee
31. Possible Implementations
• Cross functional business intelligence department could be
establish to give quick response for external changes.
• Collaborative network with a local firm could be conducted.
• Invest in R&D department for different type of organics cotton,
especially for long stable superior types.
• Find vocal people of influence who are within your target
market who can be brand ambassadors for your company.
• Host or be sponsor for an local Interactive Fashion Show