Swot Analysis: SWOT Analysis Of Zara

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Introduction
Today’s world with perfection always search for new in their look. In the world with a necessary habit of fashion, Zara makes a well-known place in the people’s heart. When fashion is the new phenomenon until the mid-19th century Armancio Ortega the founder of Zara (Inditex) comes with an idea of starting the business (in 1963) with making housecoats and robes in La Coruna, as he was the son of railway worker. While in 1975 he took his business to a little bit advance level by opening the first store in the town and he call it zorba, after the 1964 film “Zorba the Greek. But the name does not work at all so he comes with the new name called Zara (SUZY HANSEN). After the store was opened in a very least time in 1983 Zara spread
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http://www.nytimes.com/2012/11/11/magazine/how-zara-grew-into-the-worlds-largest-fashion-retailer.html https://www.inditex.com/about-us/our-story ZARA SWOT Analysis
STRENGTH
Accessible prices with high-end fashion clothes
Efficient, highly centralized operation
Fastest logistic system in the industry
Strong and large designer team
Continuing sales gain and gross margin increase
Rapid expansion
Low advertising spending
Just-in-time small batches production, low inventory
Worldwide brand name
Big business scale
Using technology
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Firstly, Zara has a high intensity of rivals, such as H&M and GAP. Take the net margin in 2001 as an example, Inditex’s got 10.5%, while H&M got 9.5% and GAP got almost 0 (Gallaugher,2008). These fast fashion competitors shared a large portion of market with Zara. Moreover, the traditional fashion brands are also considered competitors since they all have similar products to Zara. However, due to Zara’s business model, it helps the company survived and even expanded during the competition. According to the textbook, zara tend to have an advantage in management comparing with

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