Pest Analysis

Topics: Inditex, Zara, Economics Pages: 2 (625 words) Published: January 25, 2013

The global apparel market is a consumer-driven industry. Also, globalization and new technologies have allowed consumers to have more access to fashion. As a result, consumers are changing, competition is fierce, and companies are evolving to meet these demands. The company was founded in 1975 by Amancio Ortega in Spain. Trendy clothing brand Zara is known around the world for dressing men, women and children in a sexy retail environment that feels a lot more expensive and exclusive than it is. Truly a global brand, Zara has hundreds of retail locations everywhere from Abu Dhabi to Uruguay and is the largest division of Inditex, one of the largest fashion retail groups worldwide. It is claimed that Zara needs just two weeks to develop a new product and get it to stores, compared to the six-month industry average, and launches around 10,000 new designs each year. Zara has resisted the industry-wide trend towards transferring fast fashion production to low-cost countries. So far, the company has satisfying progress towards completion of defined goals. Inditex as a group has been recognized more co-friendly than competitors and now has gained a repute of being sensitive and rational towards the community and environment welfare issues. 1) 2)

PEST analysis is a business analysis model. It examines the external environment and the global factors that may affect a business. The PEST Analysis is done under the following headings:

  Government is the major and silent factor in a business; in form of policies they may support an industry. Zara has been in Spain till now and only one more major distribution centre for Europe. For expansion of business in more countries, political support provided should be evaluated critically. Zara has options to expand its business in European countries because of their safe and predicable...
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