The University of Lahore

Lahore Business School

Case Studies
Strategic Management
Master of Business Administration

Submitted to: Miss Fizza

Submitted by: Maryam Khushbakhat

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 Case 1: Fast Fashion
1. How is strategic management illustrated by this case story?

According to the case, Zara’s plan ‘involves a clear and focused understanding of fashion,
technology, and their market, and the ability to adapt quickly to trends.’ Inditex is practicing
strategic management and it is evident starting in:
1) Setting goals –the owner’s goals to produce ‘fast fashion’
2) The formulation of strategy –to use technology to produce designs within two weeks
3) The implementation of strategy –building the design processes to take advantage of
computer aided technologies
4) The evaluation of results –the constant evaluation of designs to see which are successful.

2. How might SWOT analysis be helpful to Inditex executives? To Zara store managers?

SWOT is a basic strategic tool that helps decision makers understand the environment and their
own company’s abilities. In this case, a SWOT would point out the opportunities and threats
that exist in the garment industry and Inditex’s ability to take advantage of those opportunities
and minimize threats (i.e. from competition).For Zara store managers a SWOT is not particularly
useful unless they are able to contribute to the firm’s strategy or they have latitude to
implement strategic decisions at the store level.

3. What competitive advantage do you think Zara is pursuing? How is she exploiting that
competitive advantage?

Zara is implementing a differentiation strategy. By using technology and just-in-time production,

they are seeking to gain a competitive advantage by being faster to market and more responsive
of company needs. The key for Zara is bringing products to market quickly, so they are not
pursuing a low-cost strategy. They are also not pursuing a focus strategy, in that they are not
focusing on only one side of the industry.

4. Do you think Zara’s success is due to external or internal factors or both? Explain.

Students should recognize that successful companies are attuned to both internal and external
factors –this is the premise of the Open-System Model. Zara would not be successful if they did
not match their internal strengths to opportunities in the external environment.

5. What strategic implications does Zara’s move into online retailing have? (Hint: think in
terms of resources and capabilities.)

Zara’s strength lies in their ability to use technology to monitor changes in sales and then
respond by producing new garments in a quick time frame. This responsiveness to customer
preferences would be a good match to the demands associated with internet retailing.

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