Challenges and Strategies for Zara in Fashion Retailing

Table of Contents
INTRODUCTION...........................................................................................................................3
Introduction to company.............................................................................................................3
PESTEL analysis of Zara............................................................................................................3
Porter five force of Zara-.............................................................................................................5
Suggest and discuss strategies and tactics that could be used.....................................................6
Recommendations.......................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Retail is the termed out as procedures of selling consumer good and services to customer
with use of multiple channels of distribution in order to earn profit (Phelps, 2020). In addition to
this, retail sales can be called out as purchase of finished goods and service by businesses and
consumers. Retailer has to perform the dual functions of buying and assembling goods within
enterprise. Thus, present report is based on the activities is fashion retailing.
However, fashion retailing can be termed out as section business that act as intermediary
among manufactures and customers. This can be defined as process that work as buying clothes
from the manufactures and to sell them to the customers. However, retail merchandising
inclusive of selling commodities to customers. In addition to this, fashion firms looks over to
design market and sells apparel merchandise.
Introduction to company
The present report of business activities is based on Zara, this is Spanish retailer brand
that engaged in fast fashion product and services. It is entity that is engaged in offering
commodities such as clothing, shoes, accessories, swimwear, beauty and perfumes etc.
Therefore, the chosen entity needs just one week to develop a new product and get it to stores,
compared to the six-month industry average. Therefore, it launches around 12,000 new designs
each year. In addition to this, Zara has zero advertising policy.
Henceforth, this enables the firm to establish business model that allows self containment
throughout the stages that is inclusive of the materials, manufacture, product completion and
distribution to worldwide within few days. Therefore, the chosen entity has also online stores and
this render the better services to customer at online platform.
PESTEL analysis of Zara
PESTEL analysis is basically the framework which is being used by organizations for
analysing the external factors which impacts their operations as well as functions.
Political factors
These factors consists of political stability, tax rate, trade restriction etc.
Positive impact- The restrictions on trade in UK has been relaxed and thus tax rate has been
reduced which has affected company in positive way. It has allowed Zara to trade the fabrics as
well as dresses freely (Alexy, Anklam and Sokull Kluettgen, 2020).