5.1 The StrategiesA. Integration StrategiesZara applies the Forward Integration. Since Inditex demands a high integration between the headquarters and all branches across the globe, therefore Inditex controls its retailers and distributors all around the world in order to standardize the overall business performance. In addition, Zara also performs some horizontal integration through its acquisition of Massimo Dutti from the Massimo Dutti group and the acquisition of Stradivarius. B. Intensive StrategiesAs an aggressive expander in global market; hence, Zara practices the Market Development strategy in which they are entering new market with Asian-developing countries being their first targets. Countries include China, India, and Indonesia. That is why nowadays, almost in every new shopping malls in Jakarta, you can find Zara store in it. Currently Zara is targeting the Asian market, hoping it will generate much profit from this promising market.Not only that it applies the Market Development, Zara also applies the Market Penetration strategy, especially in European and American markets. Their techniques of doing this strategy are by improving its online store and increase customer service in all retail stores.C. Diversification StrategiesTo complete its product lines, also as a form of their differentiation, Zara sells accessories to complement their main product which is apparel. This kind of strategy is called the related diversification. Further, Zara also has the unrelated form of diversification which is the Zara Home. Zara Home is a retail store which specializes in home fashion and decoration. Zara Home, similar to Zara, emphasizes exclusivity in all f its products and it is also relatively more expensive than its competitors. Zara Home is available in 55 countries including Indonesia. However, in Indonesia we can only find

D. Defensive StrategiesZara has no defensive strategy because the company is in good condition, not in any kind of jeopardy. Therefore, it does not need any defensive strategy at the moment.

5.2 Michael Porters Five Generic StrategiesAccording to Porter, strategies allow organizations to gain competitive advantage from three different bases: cost leadership, differentiation, and focus. Porter called these strategies the Generic Strategies. The following is the framework of Porters Five Generic Strategies and the position of Zara in this classification.

SIZE OF MARKETGENERIC STRATEGIES

Cost LeadershipDifferentiationFocus

LargeType 1Type 2Type 3

SmallType 3

Type 4Type 5

Zara is categorized as the Type 3 because it is aimed to the industry-wide, in which the size of the market is large. Moreover, Zara also has some strong differentiations that make them the leader in the industry. Differentiations such as the concept of fast-fashion (which was pioneered by Inditex), that is supported by its excellent and integrated supply and value chain.