Zara's Swot Analysis

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Submitted by: Fatemeh Hashemi 093014007 Mojdeh Radkani 083016009 Farshid Zamanirad 093014012 Mehdi Ebrahim zadeh Namvar 093010232 Abdul Mukhtar Ghafarzoy 103014016 Polina Martsyanova 093016001

May2011

5/31/2011

2

Company Overview

Zara is a Spanish chain store of Inditex Group, one of the world’s biggest retail store in the world.

• Founded by Amancio Ortega, in 1975 in Spain, where it’s still home to it’s headquarters today. • At the beginning Zara sold low price Then he changed the design, manufacturing and distribution so he could make clothes quicker, and that way react to trends faster.

The Zara BrandIndustry Anlysis
5/31/2011

Product Development Consumer Analysis Market Analysis
3

5 Keys of the Zara BusinessModel
“Teams with vast sales knowledge geared to towards the customer.” Make the stores a pleasant environment. “Meeting point between the customer and the Zara fashion offer.”

New products introduced twice a week. Top locations :17 visits / year / customer Lead role in: •  Store design •  Production •  Logistics •  Team

“Inspiration comes from the store.” Immediate reaction to trends. 1,186 suppliers,200desginers

Designed with maximum flexibility. Customer oriented. 24H – receiving order to store delivery

.
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Business Mission

“ZARA walks at the pace of society,
dressing ideas, trends and tastes that society itself has matured.” Zara’s mission statement itself shows that: • The business is in clothing industry. • Its market is all society members. • Zara’s value and goals are related to satisfaction the customers matured tastes.

The Zara BrandIndustry Anlysis
5/31/2011

Product Development Consumer Analysis Market Analysis
5

5/31/2011

6

Ext. Audit- Micro Envt. Market Analysis
women (60%) and men (25%), 15 to 45& children (15%).. fashionconscious ,Educated and relatively middle-class. 2005 = 3.3 billions 2005 till 2012 = 38% which is equal to 4.5billion

Market Summary

Market Needs

Market Trends

Market Growth

• Exclusivity • Affordability • Differentiation • Experience

• Population trends • An increase in the level of concentration • Internationalization in the clothing sector. • E-commerce and Tele-shopping. • New sense of style/fashion

5/31/2011

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Target Market
Plus size, full shape body women
Clothes that fit their body shape and make them look beautiful

Main segment

Demogra phics

Psychogra phics

Benefits sought

Aged 18-40 Work in big cities pursuing Higher-level education / Mid-range income

Interested in fashion trends Conscious about their looks Enjoy shopping and socializing Hectic lifestyle

5/31/2011 5/31/2011

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8

Ext. Audit- Micro Envt. Market Analysis
120

Market Share
15% Petite 25% 60% Plus Size Normal

100

100
76

80
60

40
20 0

Size
2006 2012

Segment Growth: 40% increase by 2014. Only 5% of retail space is dedicated to the +size products The Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 9

Ext. Audit- Micro Envt. Competitors

1
2 3 4

Hennes & Mauritz Gap Benetton

The Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 10

Ext. Audit- Micro Envt. Manufacturing &Distribution

is a vertically integrated retailer

Unlike similar apparel retailers, Zara controls most of the steps on the supply-chain: It designs, produces, and distributes itself.

5/31/2011

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Ext. Audit- Micro Envt Consumer Analysis
Today’s fashion consumer:

More choice,

more

educated, more

savvy

& demanding

“New breed of shoppers”
Loyalty, variety, freshness
The Zara BrandIndustry Analysis Product Development Consumer Analysis Market Analysis 5/31/2011 12

Ext. Audit-Macro Envt. PESTEL Analysis
Zara would need to know the trade system of importing the good in the country and Governmental policies. Zara would have to work according to the trend...
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