Zara: A Comprehensive Strategic Analysis Presentation

This presentation offers a detailed strategic analysis of Zara, a prominent player in the fashion retail sector. It begins with an introduction to Zara, tracing its origins and growth. The core of the presentation lies in its SWOT analysis, which examines the company's strengths, such as its robust distribution network, and weaknesses, like the gap between current stock and consumer trends. It also explores opportunities, such as leveraging AI, and threats, including low-quality products and outdated fashion trends. The presentation then delves into a PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors influencing Zara's operations. The political factors include government policies, while economic factors address market conditions. Social factors cover cultural aspects, and technological factors focus on advancements. Legal factors encompass adherence to laws, and environmental factors address sustainability. The conclusion emphasizes the importance of business environment scanning, and the presentation concludes with a list of references, providing a comprehensive overview of Zara's strategic positioning within the fashion industry.

PRESENTATION ZARA

• Introduction
• SWOT analysis
• PESTLE analysis
• Conclusion
• References
TABLE OF CONTENT

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.
INTRODUCTION

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.
SWOT ANALYSIS

• Strength: The Strong distribution network – Over the years Zara has built a reliable
distribution network that can reach majority of its potential market.
• Weakness: The product portfolio faces a wide gap in between the current stock of
apparels and latest consumer taste trends.
CONTINUE….

• Opportunities: The organisation can use the emerging techniques of Artificial
Intelligence in its stores for the better customer experiences and gaining the attention of a
wide segment of potential market share.
• Threats: The low quality product and obsolete sense of fashion trends makes it
threatening for the ZARA.
CONTINUE….

A firm's background is wholly responsible for the growth and failures of its functions. Thus
the external environmental factor of a firm impact on certain procedures and survival of
organisation within the respective boundaries of the nation where it is currently performing
or it is supposed to do the effective trading.
PESTLE ANALYSIS

• Political Factors: All those elements in the environment of business that are comprised
of the respective governmental policies, mind-set of the ruling party, principles and
regulations that are imposed by the existing political powers within the nation.
• Economical Factor: The economic factors are those elements which are directly and
indirectly related to the financial conditions of a respective market place wherein the
company operates its business.
CONTINUE….

• Social factor: The social factor can be understood by all those aspects of different
society and culture in the political boundaries of a respective nation.
• Technological factor: This constitutes the progress as well as advancements which take
place within the domain of technology.
CONTINUE….

• Legal factor: This factor is concerned with the legislation and laws that an entity needs to
adhere to, to ensure its long term sustainability within market place.
• Environment factor: This aspect of macro environmental analysis is concerned with
sustainable practices and environmental laws (Charter, 2017).
CONTINUE….

On the basis of above discussion, it can be said that scanning the business environment is
important for an organisation. In this regard, it is analysed that the environment within
which an entity functions consists of internal as well as external factors.
CONCLUSION

• Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and
productivity in Africa. Journal of Development Economics.114.pp.159-171.
• Brown, R. A., 2018. Chinese business enterprise in Asia. Routledge.
• Chang, J. F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
REFERENCES