Zara Business Strategies: SWOT and PESTLE Analysis, Leadership Style and Corporate Social Responsibility

BUSINESS

TABLE OF CONTENTS
BUSINESS.......................................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT Analysation of Zara.........................................................................................................3
PESTLE Analysation of ZARA...................................................................................................5
Leadership style from Daniel Goleman’s ...................................................................................6
Corporate Social Responsibilities of ZARA................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In general, a business or an organization requires numerous strategies and theories to
implement on the occupation from which they can obtain the higher success. Choosing an
organization named ZARA which is a Spanish apparel and mainly deals in fashion-clothing,
accessories and footwear located at Spain. The parent organization of ZARA is Inditex company
which is a multinational clothing organization(Green, 2020). The company has 2,270 stores in
the entire world and providing the best clothings and products. Here, the report is illustrating the
ZARA company business strategies from which they can gain competitive advantage and
develop themselves at higher peak. Along with this, is also mentioned the leadership style which
also influence the business and its result. In this report, it has also mentioned the importance of
corporate social responsibilities which can influence the business.
MAIN BODY
SWOT Analysation of Zara
The SWOT refers to the strengths, weaknesses, opportunities and threats to the firm. The SWOT
helps in examine the internal environment of the company. The elements of the internal
environment can be managed within the company. In order to understand this with clearance,
here is the SWOT Analysis of Zara.
Strengths of the company- The strengths determines those factors that adds glory in the
performance of the firm. Here are the strengths of the Zara.
Pioneer advantage- The company has been proven effective enough in producing the
fashionable products. This is one of the strength of the firm as the customers are highly
influenced by the fashion. And the products of the firm is providing the complete assurance of
the latest fashion.
Online platform- The firm is highly active on the online platform as the large number of
customers prefers the online shopping (Teoli, Sanvictores and An, 2019). Now days, the
consumer has been shift towards the online shopping more. It has been found from various
studies that, the online growth of the firm has resulted in gaining large number of customers in
the favour of the firm.
Designer team- The organization has been proven highly effective in terms of converting the
desires of the customers into the latest designs. The firm has approached the various designer

team. And all of them working effective in order to add those designs in the clothes that has been
demanded by the customers.
Weaknesses of the firm
Sustainability- The company is keeping their head high with maintaining the fashion trends in
the market. At the same time the fast-fashion concept of the company acting as a barrier in
managing the concept of sustainability. The company is producing large number of fashionable
products but, this is somewhere affecting the sustainability concept of the firm.
Changing taste of customers- Fashion industry is one of that industry that keeps changing as no
fashion lasts for a long time. Therefore, it has been considered as one of the weakness of the firm
(Vlados, 2019). It is hard to immediately adopting the changing demand of the customers.
Therefore, the company has approached the designer teams.
Opportunities to the firm
Adopted the eco-friendly environment- In order to change the weakness into the strength the
company is focusing on performing the corporate social responsibilities towards the
environment. As a result, this leads to increasing the goodwill of the company in the market.
Customers and investors are getting attracted towards the company.
Rapid delivery cycle- The customers visit the Zara stores at online and offline platform numerous
time. The company never fails to deliver their product on time. This creates the opportunity in
relation of increasing the sales (Vlados and Chatzinikolaou, 2019). As a result, the company
makes more sales at both the platform and earns high profit.
Threats to the company
Competition- Shein is the biggest competitor of the Zara. The company has a threat from the
competitor firm as the Shien also ensures the latest fashionable brand to the customers. But,
rapid delivery style along with adopting the effective designer team enabling the firm to face this
threat.
Price war- As the company has its brand value in the market. The company is assuring quality
product along with including fashion (Abugalia and Mehafdi, 2018). Therefore, the prices of the
firm is high. This act as a threat to the firm. But, the trust of the customers towards the firm helps
in maintaining this threat.