Preview

zara SWOT

Satisfactory Essays
Open Document
Open Document
352 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
zara SWOT
Strength

Brand

Zara is one of the famous national costume brands. There are about 2000 chain store at about 50 countries, and it be evaluated the most research value brand in the Europe. Zara has big potential development ability in the future

Amount of clothing styles

Zara always produced about 20 thousand kinds of styles clothes every year, so it gives some selections to different customers. Zara always give a fashion and strange feeling to customers. More selections and follow fashion step closely lead Zara to become more attractive and charming.

A few amounts of one style

Zara produces a few amounts of one style, and they will not fulfill the clothes in one store when the store sells out. If customers are not buy the clothes during a period time, maybe Zara will have no inventory, so it helps Zara to build loyal customers.

A big and strong designer team

There are around 500 fashion designers in Zara, and they always take part in some fashion shows around the world, it can help them to get inspiration on the clothes.

Weakness

There are lost of younger designer in ZARA, however lack of high class and more experience designers.

Lack of promotion

Opportunity

Technological development

Nowadays, progressing in technological development, the transmission of information become faster and faster. People can know a lot of information through the Internet and other channels (television, radio, et.) without go out

Consumption ability improvement

Nowadays, people’s life has improved. Some people have ability to afford the

clothes. So it is pushing forward Zara’s development.

Threats

Competitor: there are lots of famous and fashion couture in the world such as H&M, UNIQLO,Gap,etc. Zara must solve and face a lot of challenge and then outstanding in the industry.

The cost of Raw material

Zara do not put the producing flow in some low cost countries, they used centralized production mode to produce the product and

You May Also Find These Documents Helpful

  • Best Essays

    Airline and Zara

    • 2445 Words
    • 10 Pages

    ZARA has well known for its fast and low cost fashionable clothing. The success is built from its huge design team and information system linked the designers with the suppliers. ZARA has a more than 200 designers for its product development. They have to identify trends in fashion industry and design accordingly. Moreover, there is an effective information sharing system between Zara’s headquarter, its shops and its suppliers. In this way, all the three parties can gain the information, manage the inventory and make payment.…

    • 2445 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Zara Case Write-Up

    • 1277 Words
    • 6 Pages

    The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence and judgment of common employees who enjoy a great deal of autonomy. Second, its marketing, merchandising and advertising strategy. Zara does not spend on virtually advertising, while it spends heavily on stores, and no selling online because of the nature of its DCs and complication of online selling. Also, Zara has clear positioning that its clothes are always in style and not for durable use. Third, Zara has lots of stores and large scales, which has promising financial achievements as well as potential growth point. In general, Zara has a business model of preferences for speed and decentralized decision making.…

    • 1277 Words
    • 6 Pages
    Good Essays
  • Good Essays

    La La La

    • 1074 Words
    • 5 Pages

    ZARA is the flagship brand under the Indetex Group, which is known worldwide by its fast fashion products. Their core competitive strategy is developing the new product and getting it to stores within 15 days. The uniqueprocessing model ensures ZARA occupied the market advantage among the fashion industry.…

    • 1074 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    zara case study

    • 670 Words
    • 3 Pages

    Zara has a highly flexible tool for producing close to its customers and an efficient and quick chain information system. Zara designers are constantly listening to advice and comments from store managers. During their regular contact, the store managers give suggestions, advice and criticisms on products and on the choice that should be taken thanks to the retail experiences with customers. .It allows to Zara to be the first company to offer the new fashion garments, Zara create a sort of rareness. To control his production, Zara produces a lot in Spain with exclusive suppliers, it give to Zara a great reactivity and a good control.…

    • 670 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Zara Swop

    • 474 Words
    • 2 Pages

    Zara has established itself successfully over the course of five years since the opening of its first retail store in Spain in 1975. We must now consider further opportunities of growth with a sole purpose of gaining further international recognition in order to maintain our mark as a top leader in the retail industry amidst the competition of the fashion industry.…

    • 474 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Zara Case Memo

    • 1034 Words
    • 5 Pages

    Let us first consider Zara 's main competitive advantage before analyzing how current and potential future strategies will affect this competitive advantage. Zara currently employs a "design-on-demand" retail model allowing the company to bring the latest fashion trends from conception through production and into the stores in less then 15 days. This advantage is harnessed through Zara 's high degree of vertical integration. Zara is involved with almost every aspect of the retail clothing value chain, from fabric cutting and dying through distribution and sales. Integral to Zara 's competitive advantage is its strong and distinctive culture, both at the production facilities and in the stores. This unique boutique-style culture entails a minimalist store design centering attention on the clothes, as well as very high throughput rates resulting in customers returning to Zara stores an average of 17 times annually.…

    • 1034 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Zara brand has been said to be ‘synonymous with the cutting edge of fashion at affordable prices.’ (123helpme.com, 2008)…

    • 4530 Words
    • 19 Pages
    Good Essays
  • Good Essays

    Zara: Fast Fashion

    • 733 Words
    • 3 Pages

    Zara is the largest and most internationalized of Inditex (Industria de Diseno Textil) chain based on Spain. Zara had built up their business in the Spanish market by 1990, and started to expand their business into global market. At the same time, according to the case, they started to make major investments in manufacturing logistics and IT, including establishment of a just-in-time manufacturing system, a 130,000-square-meter warehouse close to corporate headquarters in Arteixo, outside La Coruna, and an advanced telecommunications system to connect headquarters and supply, production, and sales locations. Since Zara’s business system is consist of Design, Sourcing & Manufacturing, Distribution and Retailing under one umbrella, such an investment could add more value on their unique system. Based on this system, Zara takes only 4 to 5 weeks to design and a week to produce it. On the other hand, other competitor such as Gap, H&M, and Benetton usually takes approximately 6 months to design and 3 months to produce it. This is the core competency of Zara, since Fashion industry changes its trend so fast like daily product which easily turns bad. As minimizing the time to deliver their fashion item, they also can reduce a risk, just in case of misleading a trend or any mistake. In other words, Zara could take a competitive advantage, as they do concentrate on controlling over entire process from design to distribution. Another interesting fact is that Zara only spent 0.3% of revenue compared with other company in the fashion industry spent on 3.5%. They believed that store window in Europe play an advertizing role.…

    • 733 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Zara Pos System Case Study

    • 1323 Words
    • 6 Pages

    Zara has a unique and very effective business model; it operates with a philosophy to give customers what they want faster than its competitors. It produces “short life span” apparel and can quickly adjust its supply and designs to meet current customer demand, contrary to traditional fashion retailers, who design season-long apparel and then promote it through heavy advertisement. Zara introduces around 11,000 new items per year while investing only 0.3% of its revenue on marketing, compared to industry competitor averages of just 3,000 new items per year with a heavy 3.5% marketing expenditure.…

    • 1323 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Zara occupies an unusual niche in that it targets and appeals to a mid-market segment in its different operating territories. However, it also appeals to high and low end customer who enjoy the fashionable and easy to wear orientation of…

    • 2558 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Zara Case Study

    • 1846 Words
    • 8 Pages

    Zara created a new product which wasn’t in the market. Then they analysed the market segmentation and considered the companies competitive advantages and market opportunities. This was done by taking buyers’ preferences into consideration and then compared the organizations’ strenghts and weaknesses. So they realised that the market needs good quality but low cost products. That’s why they created affordable and trendy clothing.. “According to Castellano, Zara-unlike its competitors- focused more on…

    • 1846 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Zara Case Analysis

    • 513 Words
    • 3 Pages

    First of all, Zara has a special planning and design cycle. Zara hires 200 designers and make 11,000 styles of apparels every year, which is about 5 times as many as comparable retailers produce each year. Zara’s production is based on small batches, and this reduces the throughput time. Zara’s timeline began one year in advance of the start of the corresponding year, which means designers start working on the initial ideas for 2013 Spring/Summer collection since 2012. After finishing the initial design collection, the company produced only 50-60% of in-season apparels in advance, with the rest being manufactured on a continuous basis after they are available to the public. Competitors like H&M and Gap, on the other hand, has 80% of its apparels produced in advance, which lead to great amount of inventory in warehouse and high probability of leftovers. This will hurt the companies’ bottom line as the leftovers are usually heavily marked down at the end of the season. Because of its continuous manufacturing method, Zara does not have high amount of inventory and has significantly less leftovers that need to be discounted and would result in loss. Zara can focus on manufacturing only popular collections and thus maximize its profit.…

    • 513 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Zara and H&M

    • 4554 Words
    • 19 Pages

    Zara is a very big clothing chain from Spain. The chain was founded in 1975 by Mr. Ortega, and it now has more than 1.000 stores in approximately 63 countries – so it is a very big chain. However Zara has its biggest market in Spain, where they have 364 stores in total. They sell fashion clothes of a fairly good quality to reasonable prices – this also means that they have a broad target group, which we believe to be from kids to adults younger than 50, both men and women. Over the years Zara has expanded their product line heavily, so now they also sell accessories, cosmetics, furniture and perfumes. They have made a whole new store called Zara Home where they…

    • 4554 Words
    • 19 Pages
    Powerful Essays
  • Satisfactory Essays

    Swot Zara Analysis

    • 665 Words
    • 3 Pages

    Zara needs just two weeks[1] to develop a new product, launches around 10,000 new designs each year. Its design team produce an incredible 11,000 different designs a year.…

    • 665 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Logistics H&M Versus Zara

    • 1499 Words
    • 6 Pages

    Zara launches about 12.000 collections each year (1000 each month)! Most other clothing stores try to predict the trends in fashion, because they need 6 months to one year to develop a clothing line. Zara on the other hand, only needs a month to create a new clothing line. Their store managers are continuously monitoring the trends they see on the streets and in their stores and pass on critics from clients to their superiors. This gives Zara the accessibility to a constant flow of new ideas. Above that This means that logistics makes out a crucial part of the Zara company.…

    • 1499 Words
    • 6 Pages
    Good Essays

Related Topics