Jennifer North has asked you, as a potential consultant for Wearable Wishes, to prepare document that summarizes your preliminary evaluation of how and why Wearable Wishes can compete with the threat Zara poses to its U.S. market base?

Should Zara succeed in taking over most or all of the market share in the US, this would negatively impact Zara whilst strenghtening Zara to compete against WW in other markets. All they need do is modify their strategy to suit the demographics and psychograhics of the other markets where WW is present.
Zara's US market is huge. Besides, if it's accepted there, the chances are that it will be accepted in other markets globally.

Therefore, WW's interest in the US must be preserved by initiating and sustaining strong competition against Zara for the US market.

HOW The best place to start from would be to execute a SWOT analysis for both companies if possible. WW should be concerned about how it can leverage a combination of its strengths and opportunities to outsmart Zara and woo the market over to its side whilst reducing or minimizing its weaknesses.

Another tool that will be very relevant in the above excercise is the Potters 5 Forces Framework/Analysis.

The above tool looks at competitive rivalry from the following perspectives:

The ease with which potential competition can enter the market
The influence of suppliers in the industry
Substitute goods
The influence of buyers in the industry

One key advantage that WW has over Zara is that Zaras offerings are limited to: Men, Women, Kids, Shoes and Bags. WW, on the other hand, provides all the above and more. Their include: Toys, threats and even animal items.

Cheers!