Question

• Evaluate the strategy of a multinational business organization

Using your interpretation of the course material on strategy and the strategic management process submit a response to the following:

• Identify the elements of the strategy of a multinational corporation of your choice.
  • Is the strategy of this organization successful?
  • What is the evidence?
• Identify and state the name of a close competitor (i.e., a company in the same industry) of your chosen company.
  • How is the competitor’s strategy different than that of the company you selected?
• Which company’s strategy is more successful and why?
• What initial conclusion about strategic management can you draw based on your investigation?

Answer 1

The strategy of multinational corporation Zara International is differentiation strategy.

The company has a vertically integrated structure and efficient supply chain management system to distinguish its offerings in the market. The company is into fast fashion segment that tracks the popular fashion trends and converts them into apparels that are shipped to its stores worldwide in a short period. The company does not places any discounts or markdowns on its merchandise and its design team closely works with stores to collect feedback and do any changes to the collection for generating more sales.

The strategy of the organisation is successful as the company is popular for its fast fashion and customers buy the products often as the collection is fast changed in the stores. The company operates its business in different parts of the world and is known for its trendy fashionable styles.

The name of a close competitor is H&M. The competitor strategy is different from the company selected as it designs its line with longer lead times, manufactures and sells at more competitive prices.

Zara's strategy is more successful because of the differentiation in the product offerings of the company.

It can be concluded about strategic management based on the investigation that the strategy of the company should be made based on the needs of the target market.