How can Zara learn from amazon ppt


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International Business Model


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By: dalmiro123 (114 month(s) ago)

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Presentation Transcript

How can Zara learn from, as it prepares to further growth online in Europe, even though Spain is one of the hardest hit economics in the current downturn. : 

How can Zara learn from, as it prepares to further growth online in Europe, even though Spain is one of the hardest hit economics in the current downturn. ZARA

Slide 2: 

The Plan Zara overview Zara’s business model and strategy Their current position in the market Zara goes online, why? When? How can Zara online shopping can increase Zara’s profit, even with the current downturn in Spain Amazon overview business model offers How can Zara learn from since it’s number 1 online retailer shop ZARA

Zara Overview : 

Zara Overview Zara Fashion Shop, owned by Business Man “Amanico Ortega” from Spain opened in 1975. Zara leadership brand of the Spanish clothing retail group “Inditex”. Inditex clothing retail group owns Zara, ZARAHOME, BRESHKA, PULL &BEAR and Mussimo Dutti. A very large design team based in a la Coruna in North West Spain The group designs and manufactures almost everything by itself, and new designs are dispatched twice a week to Zara stores.

Zara Business Model and strategy : 

Zara Business Model and strategy Zara as been since they launched focusing in its core fashion philosophy that creativity and quality design together with rapid response to market demands which will yield profitable results. Zara concentrate on 3 winning formulae to bake its fresh fashions: Short lead time More fashionable clothes. Lower quantities Rare supply. More styles More choice and more chances of hitting it right. = = =

Zara current position in the Market : 

Zara current position in the Market Inditex group - Zara now has over 4,400 stores in 73 countries, made net profit of 375 million euros July/ 2008. and had continued at the same rate in the period from Aug 1 to Sep 14. In 2009 Zara parent company – Inditex recorded a 9% increasing in sales to 2.22 Billion euros in the first quarter of its financial year, they benefited from the strength of the euro, so Zara planned to expand overseas in spite of the economic downturn in Europe. Zara now consider as the biggest clothing retailer in Europe.

Zara goes ONLINE WHY? WHEN and HOW? : 

Zara goes ONLINE WHY? WHEN and HOW? New stores opening internationally helped inditex to go rapidly especially in Asia, Zara increased total share from 9% to 11% due the strong profit Zara reported in Asia although at the time Spain faced sales declining, which accounts for about the one-third of the company’s sales. (This decline in Europe gave Zara the idea to go online) Zara will start operating online for winter/2010 season, Inditex has realized that online is “an important Strategic step” Zara will be operating online in winter/2010 collection, in Germany, Portugal, Spain, UK, France and Italy.

Vs. : 

Vs. What can Zara learn from amazon as it’s number 1 retailer shop online

Slide 8: an e-commerce online shopping started in 1995, founded by Jeff Bezos Now Amazon one of the leadership online retailer shop, selling all kind of brands and items with over 76 million active customers’ accounts and order fulfillment to more than 200 countries. Large number of online offers everyday business model : business model Amazon followed a very obvious strategy by focusing on very important elements such as: Price value Achieving customer loyalty Providing easy to use functionality Fast and reliable fulfillment Items feature rich content Trusted transaction environment A number of offers daily.

What Makes that special? : 

Amazon provides a Varity of offers everyday: Recommendations  customer who bought X bought Y Free shipping offers are used to encourage increasing the basket size, if the total reached a certain amount Video presentations of latest inventory availability informant Wish list offer, buying guides, Amazon wedding planner and baby register creditcard, gives a number of offers and discount rates 1-Click technology secure payment system which makes payment fast and simple What Makes that special?

What Makes that special? : 

High effective customer satisfaction and effective marketing communication are the main reasons of amazon success. This customer experience created a word-of-mouth promotion which is effective in acquiring new costumers and may also encourage repeat customer visits. In order to achieve success in global marketing amazon hires local employees in foreign countries to help them gather more information about the local market and demand the local potential customers. What Makes that special?

Comparing Zara online to : 

Comparing Zara online to

How can Zara learn from : 

How can Zara learn from

Zara online Future : 

Zara online Future Zara made a logical decision to go online, this strategic move online is a welcome development for Zara outlook that will help boost group sales, making Intedix-Zara less reliant on new space to drive sales growth. Zara has no worries in going online and believes that online will fully complement it’s bricks and mortar stores.

Slide 16: 

Thank you Done by: AMAL SANAD

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