Sample Essay

The opportunities that are present for the company pertain to progressing into the Italian fashion market which is highly developed, competitive as well as profitable. The company is planning to expand with 15 stores toItalyby 2013 while also increase its presence in theUKandFrance. The company also has the opportunity to increase its presence in the Japanese market as there exists a high demand by consumers for fashion and fashion based products and services. Furthermore the company can also expand into the French footwear market.

The threats that are faced by the company pertain to the decline in the CPI for apparel in the region of Spain. Spain previously enjoyed a high CPI in this category which lead to much of the profitability for the company. However the decline in this segment could bring down the sales and the revenues for the company. Other threats that are faced by the company include the company’s own expansion strategy. The company is rapidly expanding in the local and the international markets which can create staffing problems as well as problems pertaining to lack of proper integration. Lack of proper management of stores as well as the proper training of the staff at the stores, this could lead to the compromise of the company image and that of its brands like Zara. Other threats include the new avenues for fashion which are being utilized by competitors pertaining to manufacturing, distribution and the overall management of the supply chain.

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Essay: Opportunities and Threats of Zara’s Store
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