Zara, the Story of Global Apparel Industry

ZARA, the Story of Global Apparel Industry

CONTENTS 1
Introduction 2
External environment 3
  2.1 Overview 3
  2.2 PESTLE analysis 3
      2.2.1 Political and Legislative 3
      2.2.2 Economic 3
      2.2.3 Socio-cultural 4
      2.2.4 Technology 4
      2.2.5 Environment 4
  2.3 Porter’s five forces 4
      2.3.1 Potential new entrants 4
      2.3.2 Industry competitors 5
      2.3.3 Suppliers and Buyers 5
      2.3.4 Substitutes 5
Porter’s value chain 6
  3.1 primary activities 6
      3.1.1 Inbound logistics 6
      3.1.2 Operations 7
      3.1.3 Outbound logistics 7
      3.1.4 Marketing and sales 7
      3.1.5 Service 8
  3.2 support activities 8
SWOT analysis 9
  4.1 Strength 9
      4.1.1 Strength of supply 9
      4.1.2 Strength of product 9
      4.1.3 Strength of service 9
  4.2 Weakness 10
      4.2.1 Bad quality 10
      4.2.2 High cost of labor 10
      4.2.3 Europe centric model 10
  4.3 Opportunities 10
      4.3.1 Rising of income 10
      4.3.2 Online sales 11
  4.4 Threats 11
      4.4.1 Natural disaster or power outage 11
      4.4.2 Large numbers of competitors 11
Conclusion 12
Appendices 13
Reference: 14

  Introduction


This report will analyze ZARA Company from three aspects — external environment, Porter’s value chain and SWOT analysis. By analyzing the problems which ZARA faces, the report will give recommendation in final.
With development of times, people began to have more access to fashion. So the apparel industry is rising fast. ZARA was a small dress shop started by Amancio Ortega Gaona at a remote town in northwest part of Spain in 1978 (Lopez & Fan, 2009). Now, the little-known shop has grown into one of the largest international fashion companies owned by Inditex. ZARA relies on its own unique strategies arising in the fashion industry with an astonishing pace and now it has already had 1557 stores in 78 countries (Lopez & Fan, 2009). Although the... [continues]

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