Report on Inditex: Service Marketing Challenges, SWOT, and Threats

This report provides a comprehensive analysis of Inditex, a leading clothing brand in Spain, focusing on its service marketing challenges. It employs a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats. The report delves into key service marketing challenges Inditex is expected to face over the next three years, including marketing challenges, the impact of pandemics, physical presence limitations, market competition, and regulatory pressures. Furthermore, it analyzes these threats through the lens of theoretical principles of service marketing, offering strategic recommendations to overcome each challenge while leveraging the company's strengths and opportunities, such as skilled workforce and technology advancement. The report concludes by emphasizing the importance of SWOT analysis in achieving organizational goals and highlights strategic suggestions for managing and improving organizational performance.

INDIVIDUAL WRITTEN
REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1- Analysis of strengths, weaknesses, opportunities and threats facing the organization...........3
2- Determining organizational key service marketing challenges for the next 3 years, based on
research and analysis....................................................................................................................4
3-Analysing threats through theoretical principles of services marketing and
recommendations.........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing is defined as procedure of promoting ventures and their products or services in
the market, where potential customers are accessible in the bulk (Das and et.al., 2021). The
current assignment will be based on Inditex, which falls under the category of leading clothing
brands in the Spain. The study will explain strengths, weaknesses, opportunities and threat facing
the company and will also define the key service marketing challenges for the next 3 years.
Furthermore, it will also specify the threats through lens of theoretical principles of service
marketing and strategic suggestions to overcome each challenge within constraint of
opportunities and strengths.
MAIN BODY
1- Analysis of strengths, weaknesses, opportunities and threats facing the organization.
The strengths, weaknesses, opportunities and threats are addressed as important they help
in analysing the key aspects of the organization which is taken as Inditex. Inditex is the company
which deals in the retail sector and this helps in channelizing the basis through which the
company is operating in the sector at large scale. The SWOT analysis is done in the tabular
format through which all the four factors are explained appropriately -
Strengths
 High degree of integration in sales and
production process is the key strength
of chosen company, which may affect
positively upon further growth and
success in the market or across national
boundary (SWOT Analysis, 2022). It
may enable firm to maintain high
extent of integration in each phase of its
sales and production procedure.
 Skilled workforce is the major strength
of Inditex, which enable organization to
take pleasure of increasing productivity
and profitability as well as improving
organizational performance level.
Weaknesses-
 Lack of focus on marketing &
promotion is the main weakness of
Inditex, which affect negatively upon
organizational growth in the
competitive market in term of
decreasing sales and customer base. It
may affect profits and sales of
company, which is not suitable for its
brand image in the market.
 Another weakness of Inditex is low
physical existence in the emerging
markets that affect buying behaviour of
consumers, especially those who may
existing in the new market. In the Asian

market, including Thailand, Malaysia
and other it may have few open e-
commerce platform that is not suitable
for competitive growth of venture.
Opportunities-
 Technology advancement is the best
opportunity that each and every
organization, either small or large tend
to grab in appropriate manner.
 With advanced technologies such as
digital marketing channels, Inditex may
reach desire outcomes in form of
overcoming the weakness that it may
have and that is lack of digital
existence.
 Another opportunity that organization
may grab is backward integration,
which may help firm to reduce its costs
and maximize profitability, more than
the rivals. By acquiring some
production and supply chain may aid
firm to eliminate costs and assure rapid
supply of raw materials.
Threats-
 Pandemic, regulatory pressure and
intense competition in the fashion
industry, are those threats that put the
adverse impact on Inditex.
 Each threat may affect business
performance and productivity as well as
profitability, for which organization
work harder than ever.
 Pandemic and other threats may
increase work pressure upon candidates
who are working in the organization
from longer time ago and also hired by
the human resource management few
weeks or months ago.
 It may lead to decrease operational
effectiveness or efficiency, which is not
suitable for its rapid growth in the
fashion sector.
2- Determining organizational key service marketing challenges for the next 3 years, based on
research and analysis.
The success and growth of any venture might be impacted due to some threats and their
own weaknesses that work as key challenges. In case of Inditex, lack of concentration related
to marketing, physical presence, pandemic, competitive and regulatory pressure are key
service marketing challenges that may put the adverse impact on organization for the next 3
business years.

Marketing challenge-
It can be said that each form of challenge affect organizational performance, including
current and further negatively (Malesev and Cherry, 2021). For example, without having
effective marketing and promotional activities, organization is unable to sustain in the upcoming
three years in the overall industry.
Pandemic-
Based on secondary research, it can be said that COVID-19 has also impact on Inditex, as
it lead to increase work pressure and stress level among employees (Meyer, Prescott and Sheng,
2022). Due to this challenge, organization may tend to improve or increase its performance,
which it may put pressure on employees to contribute in the context of same which is not good
for their mental as well physical health, in varied manners.
Physical evidence or presence-
Another challenge that firm may face related to marketing is lack of physical presence
that unable marketer to promote venture appropriately, where individual customer may reach
easily. In the world there are different nations accessible where Inditex may not have any
existence, which may create complications for marketer section to promote venture and its
products successfully. It may lead to increase issues and decrease the profits, sales and success.
For example, it may plan to enter into Indian and other developing or emerging market, where
growth factors are accessible in bulk.
Competition in the market-
Along with above challenges, the current one may also determine throughout secondary
research and internal business environmental analysis (Turkcan, Imamoglu and Ince, 2022). In
the recent time, due to increasing competition level in the fashion industry firm may face critical
challenge for the next 3 years, which drive its attention toward strategic formulation and then
implementation in appropriate manner. The activities and practices of rivals may affect Inditex
venture performance negatively, which is important for management to mitigate by developing
key plans and strategies.
Regulatory pressure-
In today's time, political and legal regulation of fashion sector where Inditex exist may
increase high pressure on organizations regarding compliances and driving their operational
price high, in which marketing operation is also included (Todaro and et.al., 2021). It may affect

current planing and process of company related to advertising in term of driving marketer
attention toward complying laws and regulations changes which consumes a lot of time and
efforts as well.
3-Analysing threats through theoretical principles of services marketing and recommendations.
Theoretical principles of service marketing encompasses different terms such as features,
function, effects, and significance. Each principle may drive the attention of management in the
Inditex toward conducting strategic practices. Throughout these principles, they may analyse and
determine key threats and over budgeting, and lack of strategic directions. These two threats may
put negative impact on company in term of decreasing the effectiveness related to advertising,
which is crucial in the market where competition level reach high. In the context of each threat,
organization can take strategic action in form of considering essential and effective suggestions
that provide a lot of benefits. Each recommendation to overcome challenge may constraint of
strengths and opportunities that organization have and capable to utilize the same.
 Inditex and its management can utilize their key strengths to overcome the impact of
threats in effective and appropriate manner. They can take approach to utilize skilled
workforce among which expert candidates are performing who have capability and
competency to work under budget and guide other to do the same, without making any
mistake that directly impact marketing and other plans of company. In the recent time
with skilled and knowledgable candidates organization can grow rapidly and obtain
unpredictable success, which is essential for the next 3 or more years of progress in the
fashion industry, from national to international market.
 Technology advancement and backward integration are those suggestions that
organization and its stakeholders can take into their consideration, which enable them to
overcome the negative impact of each challenge that analyse through lens of theoretical
principles of services marketing.
 By using advance technologies firm can direct people or employees appropriately, in
term of providing them directions via using video calls and other smart digital
technologies that contribute to increase their performance and productivity level. By
considering the current suggestion Inditex can gain competitive advantages in bulk in
form of generating revenue, increasing profits, and improving organizational
performance level, even better than last few years or months.

 Along with above suggestions, organization can consider more like workforce
development and team building tactic (Sulbout and et.al., 2022). It drives its attention
toward building strong teams of players, among which each candidate is able to reach
desire outcomes as they have better understanding related to achieving aim by conducting
number of practices.
 With talented people organization gain reach desire outcomes as it can give tough
competition to other brands that operating in fashion industry and taking initiative to
achieve target goals, which is not that easy for any company to do that appropriately.
CONCLUSION
On the bases of above discussion, it has been concluded that utilization of SWOT
analysis, has enabled organization to achieved target aims and objectives. As it have determined
those factors that impacted negatively upon its growth. The strategic suggestions have drives its
attention toward managing organizational performance and increasing the same.

REFERENCES
Books and journals
Das, G and et.al., 2021. Pandemics and marketing: insights, impacts, and research opportunities.
Journal of the Academy of Marketing Science. 49(5). pp.835-854.
Malesev, S. and Cherry, M., 2021. Digital and social media marketing-growing market share for
construction SMEs. Construction Economics and Building. 21(1). pp.65-82.
Meyer, B. H., Prescott, B. and Sheng, X. S., 2022. The impact of the COVID-19 pandemic on
business expectations. International Journal of Forecasting. 38(2). pp.529-544.
Sulbout, J and et.al., 2022. Are skilled contingent workers neglected? Evidence from a cross-
sector multiple case study on organizational career management practices. European
Management Journal. 40(3). pp.429-440.
Todaro, N. M and et.al., 2021. The influence of managers' awareness of climate change,
perceived climate risk exposure and risk tolerance on the adoption of corporate
responses to climate change. Business Strategy and the Environment. 30(2). pp.1232-
1248.
Turkcan, H., Imamoglu, S. Z. and Ince, H., 2022. To be more innovative and more competitive in
dynamic environments: The role of additive manufacturing. International Journal of
Production Economics. 246. p.108418.
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