current system. Opportunities knock at the door once but not at Zara’s door because they have many opportunities. First on the list is the demand for high fashion at a low price relative to its competitors. Zara can also expand its operations worldwide by opening more branches and outlets. Zara could try online transactions that would enable them to penetrate new market segments. They could also try to widen the range of their product line. Given the opportunities that might help Zara improve their operations, there are also various threats that might hinder its improvements. Like any other established companies, Zara
also faces fierce competition from other companies, especially those who are developing a newerand more effective OS system. In addition to the existing markets, emerging markets are also becoming threat to Zara. Furthermore, due to the increasing technology and knowledge spilling, Zara’s design and business model might be adopted or even copied by other companies. And lastly, the unpredictable nature of the economy could also pose a threat to Zara.2.10.BrandingBranding in general is considered a distinctive approach to creating recognition and differentiating an organisation from its competitors (Aaker, 1991; Doyle and Stern, 2006), e.g. creating the brand name, sign, symbol, design or any other feature for a product or service that reflects the brand’s values, mission and personalities associated with them (see also Aaker, 2012;Sullivan and Adcock, 2002).According to Elliott et al. (2011), a brand is a label, which has designated ownership by afirm that a consumer experiences, evaluates and has feeling towards, developing associations with the perceived values. Elliott et al. (2011) also explain that developing brand values that reflect the brand image is important in terms of the impact it has on the consumer’s perception. In part, this is because brands exist in the minds of the consumers, and as a consequence, the management of the brand is all about the management of perceptions and associations (Elliott et al., 2011; Kapferer, 2008). Accordingly, the values and emotions symbolised by the brand become the key elements of differentiation strategies, allowing retail brands and wholesale brands to build brand trust and loyalty towards the product and service (Aaker, 1991; Keller, 2002; Sullivan and Adcock, 2002).
2.10.1. Definition of a BrandAccording to Littler (2006) and Millman (2012), a brand is described as the unique label or mark of a manufactured product, and is derived from the old Norse word ‘Brandr’, meaning ‘to burn by fires’. The concept of branding first came from the Ancient Egyptians, who marked their livestock with hot irons in order to express ownership and differentiate them from others, but the process then spread widely across Europe. As a consequence, this developed interest among many organisations from a variety of different industries, such as service-profit chains (e.g. Chang and Liu, 2009; Gummesson, 2012; Melewar and Alwi, 2015), the hotel industry (Kayaman and Arasli, 2007; Kam et al., 2013), social media (Kim and Ko, 2012) and the luxury fashion industry (Li et al., 2012), embracing satisfaction, loyalty and profitability. Kapferer