Zara Case Study | SWOT and PESTLE Analysis | Total Assignment Help [In-Depth Review]

Zarah case study analysis as you know there are endless options to choose from when it comes to clothing in fashion accessories this is why to be successful a clothing brand needs to be on their toes all the time to catch the consumers eye zara is a world-renowned brand in the clothing and fashion industry zara has placed itself among the best of the best by offering the latest and trendy clothing with top-notch quality at affordable prices making it the most profitable clothing brand among all of its competitors this is total assignment hope and in this video we will provide you an in-depth review and case study analysis on the success of the multinational clothing company zara zara is a part of its parent brand Inditex which is a company based in spain whose founder is mr. Amancio Ortega he also happens to be one of the wealthiest people in Spain in Detex owns multiple fashion brands and it is the biggest clothing company in the world having over seven thousand four hundred ninety stores and operating in 202 markets worldwide zara was founded by mr. Ortega as a flagship of indy tex in 1974 in spain under the name Zorba later changed to Zara Zara is the most profitable among all the other brands owned by Indy Tex and it contributes an estimated eighty percent of the total revenue of Indy Tex the industry the public and even mr. Ortegas competitors have often appreciated him for his board in strategic business decisions which has led to the success of his company the most prominent reason for the accomplishments of Zara is that it keeps up with the rapidly changing trends in fashion and offers quality clothing at reasonable prices it has proven itself since the beginning and has earned the trust of the customers through some bold entrepreneurial decisions by introducing new designs into the markets every two weeks in contrast it's a other brands at least six months to incorporate new designs in their arsenal effectively mr. Manchu Ortega shared his unique viewpoint by calling clothes a perishable commodity implying that people always want fresh clothing choices soon after this the phrase freshly baked clothes was adopted for the clothing range by the brand to signify the changing nature of the fashion world such poor decision making for a business requires extensive external and internal analysis in the form of SWAT and pestle to ensure feasibility and to set objectives and goals the mission and vision of a company plays a wider role in telling the world about the long-term goal and social practices of the company zara is recognized as one of the most eco-friendly companies in the world its headquarters in Spain produces most of its energy through the use of solar panels and wind turbines it is also one of the only few clothing brands that produce clothes that are hundred percent free of toxins Zara presents itself as a complete environment friendly company through their mission statements and business policies and this has enabled them to gain the reputation of being a more responsible and rational company towards the environment and community welfare concerns another impressive feature of Zara is that they have always relied on word-of-mouth marketing from satisfied customers they have only used the marketing tactic of displaying their latest designs in the windows of their stores to attract new customers to present an analysis of the external influencing factors of Zara let us now have a quick look over a special analysis the political conditions for Zara in Spain are quite favorable and allow for a smooth business transactions since the beginning Zara has always dealt a single currency thus it has been successfully getting its market share and is unaffected by the recession Spain has a rich artistic and designing heritage thus it has a significant influence over Zara due to the peaceful social environment and vibrant cultural events tourism has enabled Zara to attract more customers along with their various collections and low prices Zara has adopted environmentally sustainable technological approaches in its sales and manufacturing process by making it stores eco-friendly and using a mix of labour and automation in its manufacturing by having its assembly done by the employees the rules and regulations of the Spanish government support the industrial development of the country therefore allowing Zara to flourish environmental sustainability has always been a priority for Zara therefore the company is looking for new ways to adopt more eco-friendly business processes the sort analysis presents the internal influencing factors of the company as per the SWOT analysis the major strengths of the company are its motivated and committed employees and the setting of attainable objectives through rational and practical decisions which gives Zara a competitive edge the absence of new marketing approaches and promotional efforts is one of the major weaknesses of Zara as it can lead to a communication gap between the consumers and the company Zara still has various potential markets that have previously been untapped by the company by expanding in new markets and segmenting their product line into a specialized range is an excellent opportunity for Zara Zara faces a threat due to the over saturation of the market because of the different companies and fluctuating exchange rates after analyzing the internal and external factors a few strategic options present themselves in front of Zahra to increase their productivity in the future in the past Zahra rejected employing cheap outsourcing concept in efforts of ensuring quality but the company must now allow the process to explore new areas and conquer the global market while the environmental achievements of Zahra and the indie text group have been rewarded the benchmark said by the company have also been targeted by their competitors therefore in efforts to increase communication between these stores through customer feedback and the designers in Spain sales persons have been allotted personal digital assistants to make this process more fluent and address the market needs it is now high time that Zahra now brings evergreen fashion choices in its arsenal as there is a large population of consumers in the market who are looking for quality clothes that stay in fashion for a long time and are always available in stores Zara has been performing all its business operations through its headquarters in Spain there is an enormous potential of human capital to be explored in new regions as well which could widen the product range of the company therefore Zara should divide its business into new complementing countries it will bring them new ideas and help them understand different cultures and trends to increase their consumer base Zara could face severe challenges while implementing any of the previous strategic options which are available to them to execute any of the available opportunities Zara will need firm management with skilled individuals as the company has expanded to a larger scale the founder mr. Ortega has successfully implemented many business decisions however while when Turing into new markets Zara needs a unique team of killed members for effective human resource management Zahra needs to address its workforce diversity among its employees to avoid any aggravation in the future Zahra does not have many distribution channels which could lead to supply chain management issues while entering a new market in conclusion to this analysis we can say that Zara has been able to beat the competition and attain leadership through these strong and bold choices made by their founder this provides Zahra a reliable foundation using which they can build further strategic initiatives to maintain growth which is the most urgent need for the company the company can implement any of the mentioned strategic options in an organized manner however extensive research and analysis of the options will be required to be performed by the company before execution so with this we would like to end the Zahra case study analysis you can find the sources - all the information present here in the form of an academic research article on our website in the link below our expert writers prepared this analysis at total assignment head comm we have experts specializing in different academic fields and subjects to provide guidance and support to students we also offer comprehensive solutions to the economic problems faced by students while maintaining complete confidentiality do subscribe for more such academic related content and let us know if there is any other topic you would like us to cover

Channel: Total Assignment Help

Views: 94,299

Keywords: Zara Case Study, Zara Case Study Swot Analysis, Zara Case Study Pestle Analysis, Zara Strategy Case Study, Assignment Help, zara

Id: TtBTvg_QyCY

Length: 10min 45sec (645 seconds)

Published: Sat Mar 07 2020