Amancio Ortega and Rosalia Mera founded Zara under the Inditex Group's umbrella, a Spanish clothing and accessories retailer. Inditex consists of almost 10 companies that specialize in apparel and is a large multinational conglomerate. According to Wlodzimierz (2012), Zara accounts for 80% of Inditex Group's revenue. In the apparel industry, Zara has become a market leader due to its unique way of tracking and involving the preferences of customers. With more than 2,200 stores around the world and an online store, Zara offers products for women, men, and children. Sara offers quality products with affordable prices and modern designs that the public needs. It has been described as the most devastating retailer in the world by fashion director Louis Vuitton. It has been called the Spanish success story by CNN. Zara case study Swot Analysis assignment help by BookMyEssay can help you hype your grades very easily.
To understand the market potential of Zara internally and externally, a Zara Pestle analysis and Zara Swot analysis are conducted. We will analyze Zara's internal and external market environments and share a few suggestions that the company may consider to continue its success. The data used for this study comes from numerous published sources and case studies that have been conducted on Zara. Zara's business frameworks were reviewed using two market analysis methods: SWOT and PESTLE. You can also get the assignment help for Turabian Referencing Style to get your assignment done.
Approximately 90% of Zara's stores are in 88 countries, including United States, Europe, Asia, Australia, Middle East, and many others, and the remainder are joint ventures or franchises. Within the vicinity of its headquarters are in-house production facilities (Hill, Jones & Schilling, 2014). It allows the company to be self-sufficient at every point in the supply chain: selection of raw materials, production, distribution, etc.
Being an Imitator and not a creator
There are also some weaknesses associated with the Fast Fashion strategy. In the fashion world, Zara will never be considered a premium luxury brand since it is considered as a fashion imitator rather than predicting seasons' trends (Hansen, 2012). While its designers provide its customers with high-end designs, they play a smart trick by copying the fashion week designs instead of coming up with their own original designs.
Globally, Zara has a strong presence. All four major continents are served by the company. Yet, Africa and Asia remain untapped markets. Egypt, South Africa, Morocco, Tunisia, Algeria, and Morocco are the only countries with stores in Africa. This region offers more potential for growth for the company. The continent holds great potential for this company. Similarly, in Asia, the number of stores in China and Japan exceeds the number of stores in India, Singapore, UAE, and Saudi Arabia, despite the fact that these countries also have a high number of wealthy citizens.
Globally and locally, Zara faces fierce competition. The company faces competition locally from H&M and its own brands, such as Massimo Dutti and Stradivarius, however, on a global level it is up against international brands such as GAP, which is based in the US.