Zara swott

Topics: Inflation, Gross domestic product, Price index Pages: 4 (1058 words) Published: October 9, 2013
 Swott Analysis
Zara’s product is very fashionable due to the strong team of design and there is a strict control over the supply chain since design till produce and deliver, which the company will ensure that it meets the customers’ satisfaction at the end. Zara’s product cycle is much better than competitors, the brand is able to come up with the new design in very short amount of time and have finish goods ready in store within 24-48 hours. Zara produces up to 11,000 items per year while its competitors produce only 2,000 items approximately, this ability able Zara to replace undesirable goods with the preferred one in short notice. According to the short product life-cycle strategy, Zara create the sense of scarcity, which lead to the customer’s awareness about purchasing the goods right away after it is launched. The finding shows that Zara shopper visits the chain 17 times a year compared with 3-4 times a year for Zara competitors and their customer. Furthermore, Zara is designed to be one stop shop. The customer can enjoy the variety of the product available for every generation and activity. The location for the shops is located in a prime area where the brand can meet the target customer group and attract new purchasers at the same time. In addition, Factor that help Zara fascinate consumer is how it displays its product. Impressive layout and attractive window display are ones of Zara’s strength.

Zara has been invested a large amount of money on research and development in order to monitor fashion trend, analyze and predict what is coming next attraction. The company has centralize distribution center only in Spain, therefore Zara must invest heavily on logistic to delivery the fashionable goods in fast manner. Plus, any weather, labor or terrorist disruption to the area will affect the sales revenue directly and significantly. Another weakness of Zara is that the budget for marketing is relative low at only .3% of its...
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