Discuss Porter’s Five Forces on Zara’s industry. Identify Zara’s core competencies and competitive advantages, map Zara’s value chain, and conduct financial analysis.
How specifically do the distinctive features of Zara’s business model affect its operating economics? Specifically, compare Zara with an average retailer with similar posted prices. In order to express all advantages/disadvantages on a common basis, you may find it convenient to assume that, on average, retail selling prices are about twice as high as manufacturers’ selling prices. What external macro trends (PEST) could impact Zara?