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  • Essay / Swot Analysis of Zara - 985

    IntroductionZara is a fashion clothing store owned by the Spanish fashion group Inditex. The first Zara store was opened in La Coruña by Amancio Ortega in 1975. The main consumers were young, fashion-forward people who resided in the city and whose trends and demands were difficult to predict. Working in the clothing industry, he believed that retailing and manufacturing needed to be closely linked to meet consumer demands. What differentiates Zara from its competitors is the fast turnaround time and the use of the physical store as a source of information. The company has been hugely successful and the Zara chain has opened an average of one store per day worldwide since 2003 and currently has around 550 stores. AnalysisZara has many strengths as a company. With stores located all over the world, they have established a brand well-loved by customers. Consumers generally prefer branded products over generic products, and Zara makes this possible by keeping prices low, while still offering the latest fashionable designs. This is possible by following a vertically integrated system, maintaining their business operations at a relatively low cost. Even though Zara seems to be doing well, its current weaknesses could be the lack of promotional activities. Advertising is necessary in every business to reach and attract more customers. Some opportunities include expanding into new markets where they have not yet reached, such as China, Japan and India. Another huge opportunity would be to offer their products online. With technological advancements, shoppers are moving away from physical stores and into the online world. Some observed threats extend to a region where fashionable clothing does not matter, a fall in an economy leading to potentially higher costs,...... middle of paper ..... .come from Europe, the main focus should be to maintain its current market position and penetrate deeper into European regions. Zara needs to ensure that its brand is strong and well recognized to stand out from its competitors. If the CEO of Zara chooses to expand internationally, he will need to implement a combination of new strategies to continue his actions. Detailed observations should be made before entering a new region as the fashion market is constantly changing and without proper assessment it could lead to undesirable results. A strong research and development team should study the customs, norms and values ​​in a different field. Customer preferences need to be taken into greater consideration when seeking growth in a foreign region. Leaders must consider potentially increased business risk and security when entering new countries..