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Zara Case Study Analysis

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Zara Case Study

Zara is a Spanish apparel retail company. The company is based in the city of Arteixo, which is located in Galicia in Spain. The speciality of the company is that the company deals in fast fashion. This includes a large variety of products that include clothing, accessories, beauty, shoes and perfumes. There are also a large variety of other products that are being retailed by the company. The company is also considered to be one of the largest in the group of the Inditex that is considered to be the largest as the apparel retailer.  You can get study help.

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Background

The first Zara store of Zara was opened in the year of 1975 by Amancio Ortega. Initially the store was named Zorba by Ortega after the movie Zorba the Greek. After knowing the fact that there was a bar that was located a few blocks away from the shop. On knowing this, the owner changed the name to Zara. Initially the shop sold the look alike of the high end fashion garments at a low price. The plan was an instant hit and therefore, there were many alternative shops that were opened all across Spain. In the year 1980, Ortega planned for certain changes that were executed in all the spheres of business that included the designing, the manufacturing process and the process related to the distribution of the case study so that there was a development of instant fashion that was noticed. In the year 1985, there was a patent company that was set up by the founder and from the year of 1988, there was a strategy of expansion that was taken by the company through the countries of Portugal, France and the United States of America. There are also other developments that were introduced by the company like their online boutique in the year 2010, and using the RFID technology in the various stores of Zara.

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SWOT Analysis of Zara

Strengths 

Designs that are unique

The designs that are made by the brand are unique. This can be considered to be a very important strength of the company that can help them to grow strong in the market. The designer team of the company have some of the best designers who are working in the company who portray a high-quality design and a fine touch in all their products.

High Brand Value

The brand value of Zara is typically very high. It is ranked at 57 by Forbes. There is a set of customers who are extremely loyal towards the brand and therefore, the company has a very good market. 

Excellent Supply Chain

The supply chain of the company is one of the important strengths for Zara. It is often said about Zara that the marvellous fashion that is created by them is also supplied very easily to the stores within a very short span of only 2 weeks. In contrast the competitors of Zara take almost 6 weeks approximately to deliver the same. This makes Zara the trendiest store as the fashion and the designs that are launched by them are in advance of the competitors. 

Trendy Designs

The designs of the various products of Zara are considered to be really trendy and unique. Also, the company has a reputation of launching approximately 1000 new designs every year all across the globe. Therefore, the footfall of the customers in the stores of Zara are naturally higher than that of the other competitors in the market due to the everchanging and fresh fashion that the store has for them.

Higher level of profit

There are rare incidents where Zara is seen to advertise its products. The company mainly depends on the image and the loyalty of the customers. The trendy image of the company automatically attracts a lot of customers to their stores. Therefore, there are a lot of savings on the operations. However, the products are high end providing a lot of profit to the company.

Weaknesses

Lack of specialized collection

There is no specialization of Zara on any of the products that they make. Therefore, often there are chances that the focus of the customers shifts to a brand that has specializations in products. 

Inadequate advertising

Advertising is considered to be very important for the promotion and business of a brand. However, Zara does not essentially invest much in advertising. As a result, there are less than expected footfall in the stores.

Low Inventory

Low inventory is practiced by Zara stores on purpose so that there is fresh stock for the customers. However, at certain times this causes a big weakness for the brand as often there are no emergency restocks that are available. 

Opportunities

Online Marketing

  In this age, there is a trend of online marketing that can be seen. Online marketing is very important for the companies. This can be a great opportunity for companies like Zara to promote and increase their business. If you want to know how we work, take a look at our project management assignment who helps in managing your marketing analysis.

Growing potential of the market

Zara is a famous brand that is related to fashion and other activities. It is becoming more popular with each passing day. This is a great opportunity for the brand. If they promote their brand more through some flagship designs or advertising there is a huge chance that the company will excel.

Expansion of Markets

Expanding the markets is also a very good opportunity for the brand. New markets will mean that there will be more customers for the products of the brand. This is a golden opportunity for Zara.

Threats

Strong Competition

Zara faces a lot of competition in the market. It is not the only brand that is making a chic clothing design. The brands like Vero moda and Mango are also famous for making chic designs in clothing. This can be a big threat to Zara.

Lack of Advertisement

Lack of advertisement is a very big threat to Zara. Zara usually does not pay much attention to the concept of advertisement. This can be a threat for Zara because the brand usually has a lot of changing designs that the customers can stay aware of through advertisement.

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PESTLE Analysis

Political

Trade Agreement in Europe

The various trade agreements in Europe are a very important factor for Zara's business. Zara is by nature a Spanish company. Therefore, the company has the benefits of committing trade outside the European Union. This is very effective for Zara because Zara can easily import the necessary raw materials for the products at a very cheap rate. Also, the cost of producing the products and exporting them is also very low as there are no extra agreements that are to be followed by the brand.

Economic

Cost of Labour is low

Amongst the European countries, the percentage or rate of unemployment is relatively high in Spain. This can be a very big advantage for Zara. The reason is that the company can easily get the desired labour at a very low cost. Since a majority of the products of the brand is manufactured in Spain itself, therefore, there are chances that the company can improve the level of profit.

Relatively Affordable

Zara is famous for the chic fashion that it promotes. Therefore, there is a natural instinct in people that the brand is expensive. However, Zara is relatively less expensive than the other high street fashion brands in Europe.

Social

E-commerce

This is considered to be the age of online shopping. The people in the countries in which Zara administers its business rely more on the online shopping options than that of visiting the stores. This is extremely beneficial for Zara as the brand has a separate webpage which is also extremely popular.  However, Zara should always look after the improvements on the online store. 

Technological

Big Data 

This is the age of technology. The countries where Zara usually sells its products are full of consumers who heavily depend on the technology. Therefore, using the latest technology for fashion by Zara is extremely beneficial. 

Legal

Rules and regulations

There are various rules and laws that are associated with trade in different countries. These laws are very important for the companies to follow. Zara is a brand that practices trade in various countries. Therefore, there are many laws that the company is expected to follow especially in the various parts of the world. Our law assignment help services will help you in legal problems.

Environmental

Fast Fashion 

Zara practises fast fashion. But there are certain problems that are associated with it. There are usually more waste that is produced. This can be a very big problem for the company as the laws related to the environment are different in different countries. This can be a very big concern for Zara and it must be taken care of by the brand.

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Conclusion

Therefore, to conclude, it may be stated that Zara is a leading brand in the name of fashion. In this case study, there is a detailed background of the company provided. Also, the various internal and external business environments of the company are understood. As you can see, when you avail our Zara  case study assignment help service, you get all-round assistance. Thus, if you want to stand out from the rest of the class, you can contact us.

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