ZARA
1. Introduction
In this essay we will be introducing Zara and its general environmental analysis such as technological, environmental, social and legal factors. We will also be talking about their competitive environmental analysis also known as porter’s five forces. For example, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of new substitutes and competitive rivalry. Finally, we will talk about the strategies that Zara can make to fully utilize the opportunities and counter the threats that they are facing. Zara is second in place in the top 10 apparels category in the world and 37th in Brandz top 10 most valuable global brands 2014 (E.edim.co, 2014). They are a Spanish flagship store …show more content…
(Company | ZARA Singapore, 2010). They have effectively demonstrated themselves as a leading organization that is successful in providing positive service to their customers. Inditex themselves have 8 brands under them such as pull & Bear, Bershka, Massimo Dutti, Stradivarius, Zara home and Oysho making them the one of the biggest fashion retailers globally. They started up in 1974 by Amncio Ortega and Rosalia Mera in Artexio. Zara has taken on a distinctive method to approach the market via a disruptive business model such as using concentrated action which empowers them to move a dress, slipover, or cover from the drawing board to the shop floor in only two weeks, a quarter less than the average industry. Zara’s most unorthodox strategy was their policy of zero advertising. Their advertisements are their stores as their company would rather save their money and invest a proportion of their revenues in opening new stores in high-end areas such as Fifth Avenue, Tokyo's Ginza, Rome's Via Condotti, and the Champs-Elysées in …show more content…
Zara has high threat of substitute. Duplicating any fashion designs can be considered as a substantial threat in the realizing of revenue in markets such as Indonesia, India and China. Products that are substituted come from an unknown factory in the clothing industry as this is due to better alternatives that are unavailable on the other hand expensive but poorly made. Zara’s products are more economical and made with quality eco-friendly materials that are exceptional high quality and thus substituting it will be a