Zara UK: PESTEL Analysis Report - Marketing Module, Semester 1

This report presents a PESTEL analysis of Zara UK, examining the external factors influencing its business operations. The analysis covers political factors such as free trade agreements, economic factors including inflation and consumer income, social factors like changing consumer preferences, technological advancements in online shopping, environmental considerations regarding sustainable development, and legal aspects like copyright laws. The report highlights how these factors impact Zara's market strategies, brand awareness, product lines, and overall business performance in the UK market. It also references relevant academic sources to support the findings.

Zara UK

Zara UK
Zara is considered as one of the leading fashion clothing brand. From the coastal areas of
Spain to now being successfully operating in all over the world has proved the potential of
company. This was founded in 1975 by Amanicio Ortega and Rosalia Mera, since then it is
consistently serving faithfully to the customers. In UK the store is situated in Mayfair, London.
Objectives: The main objective of the company is concerned with the sustainable
development of society. With the wast range of product line, needs of men, women and kids are
met. Several new innovations such as strictly avoiding the use of toxic elements while
manufacturing has created goodwill for the company.
Marketing objectives: Conquering the markets of UK, zara established several
marketing objectives like increase the awareness about brand, additional changes in clothing
segment. In order to attain these goals strategies have been developed by management.
Launching campaigns on social media and use of popular faces in the advertisement has led to
the popularity of brand. With regards to the clothing segment, measures like use of high quality
material and inclusion of different sizes (Tsimonis and Dimitriadis, 2014).
PESTEL analysis Zara
Political factors: Changes in the political structure in Europe has helped in improving
the position of Zara. Like free trade agreements in which no interference of government in the
form of restrictions is made in business. Sales of the company grew by 17% due to the
introduction of this policy. More benefits can be availed if the company consistently explore the
markets of Europe (Thompson and McLarney, 2017).
Economical factors: Favourable economic condition in Spain allowed the company to
grow, but the exit of British from European union has affected the business operating in UK. The
increase in the inflation rates and reduction in the income of consumers this causes became
hindrance in the profitability as customers not being able to buy expensive clothes offered by
Zara.
Social factors: Change in the purchasing behaviour of customers are the result of the
trend, belief or values. Impact of this factor on the business of Zara is positive as increasing
preferences of people regrading making fashion as a priority has allowed the company to further
expand its bases. In several countries the brand is altering the product line in accordance to the
culture followed by the people.
1

Technological factors: The technology has influenced the operation of business. In UK
increasing amount of consumers preferring online shopping has led to building virtual stores of
ZARA on Internet. The website contains special features such as sensor through customers are
presented with wide variety of clothes.
Environmental factors: With Go Green agenda the government of UK is ensuring
business being performed without harming the environment. As ZARA specified the objective of
sustainable development, the clothes are prepared without the usage of toxic elements.
Techniques have also been developed that ensures efficient use of energy.
Legal environment: Use of copyright laws has protected the rights of companies like
ZARA. In case the the products launched by the company is recreated by other business entities
legal action can be taken.
2

REFRENCES
Books and Journal
Tsimonis, G. and Dimitriadis, S., 2014. Brand strategies in social media. Marketing Intelligence
& Planning. 32(3). pp.328-344.
Thompson, J. and McLarney, C., 2017. What effects will the strategy changes undertaken by next
Plc have on themselves and their competition in the UK Clothing Retail
Market?. Journal of Commerce and Management Thought. 8(2). p.234.
3