ZARA: SWOT and PESTLE Analysis

Presentation
ZARA

Table of Contents
INTRODUCTION...........................................................................................................................1
SWOT Analysis......................................................................................................................1
PESTLE Analysis...................................................................................................................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
ZARA is a company which has a well renowned position in the fashion retail sector and
has its roots of origin in Spain. The organisation began from a very small store in Galicia, Spain
by famous modern business tycoon Amancio Ortega. It was started as a garment store with a
view to provide the high brand quality products at the price of locally made apparels. Thus in
present state ZARA does business in more than 96 countries all over the world owning to more
2259 stores (Bah and Fang, 2015). It significantly deals in all types of clothing styles of men as
well as women and the other segment named as ZARA kids, with a high sense of fashion trends
of market and being a quality good provide ZARA influences its customer segment effectively as
the bigger proportion of its customer segment belongs to the young generation. That is attracted
towards its brand image and quality products in suitable prices.
SWOT Analysis
The Strategic planning in a firm to achieve its goals and objectives is formed by
considering the major strengths, weaknesses, opportunities and threats which impacts on the
business internally (Nohria, 2017). It can be prove as a vital tool for the ZARA to understand and
critically assess the magnitude of the inner forces and balancing all the negative as well as
positive factors.
Strength Weakness
 The Strong distribution network –
Over the years Zara has built a reliable
distribution network that can reach
majority of its potential market.
 The firm gains advantages by its
influential designs, and physical
evidences within the stores
(Charfeddine, 2016).
 It gets a higher rate on the capital
investments as the operational cost on
products is too lower than the actual
market price criteria. Thus how it
 The product portfolio faces a wide gap
in between the current stock of apparels
and latest consumer taste trends.
 The current profitability ration and net
ratio are not effective as per the
standards of earning of the organisation
as they are even below of the industry
level.
 The organisation is not performing
efficiently in the acquisition and
integration with smaller firms.
 There is an improper management of
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