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SWOT of ZARA Index

The company has many strengths such as its recognized global brand, low production costs, and the ability to respond quickly to customers. It presents opportunities like new markets and online sales channels. Its weaknesses include little advertising, products aimed primarily at women and teenagers, and an inability to see required changes. The threats are new competitors, market saturation, and increased fixed costs when expanding.

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9 views3 pages

SWOT of ZARA Index

The company has many strengths such as its recognized global brand, low production costs, and the ability to respond quickly to customers. It presents opportunities like new markets and online sales channels. Its weaknesses include little advertising, products aimed primarily at women and teenagers, and an inability to see required changes. The threats are new competitors, market saturation, and increased fixed costs when expanding.

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Perform a complete SWOT analysis of the company

SWOT Analysis: Strengths


Company recognized as a prestigious brand worldwide for the
manufacturing and sale of clothing.
New marketing approach where a space is made in the mind of the
consumers.
They have over 1000 stores located in more than 60 countries in Europe and Asia.
and America.
Application of Just in Time in order and delivery control, implemented in
all the departments of the company.
Production costs much lower than those of other companies.
Able to respond to its clients' needs in less than 24 hours and in
any establishment.
Offer quality products with innovative designs at low prices.
With Just in Time, no clothing is stored, so no money is lost.
with the inventories.
The same strategy is followed worldwide, each store is similar regardless
its location.
Use of spacious premises to distribute the products effectively.
spacious and allowing customers to stroll comfortably.
Use bright displays with light backgrounds to attract attention.
consumer.
In design, the company produces a collection twice a week and the
they distribute to each store.
Her collections are small and sell out quickly, creating a feeling of
product exclusivity.
Vertical integration increases the power of the company and allows for the creation of barriers.
of entry to new competitors.
Control the entire value chain and react more quickly to what is requested by the
clients.
It maintains an inverse value chain, fully oriented towards the customer.
It uses pointer systems such as robotics.

SWOT Analysis: Opportunities


Opening new markets, with the implementation of new trends in
fashion at a global level.
Reach the customer through new channels such as selling through a
online store
Diversification into new sectors such as banking, construction companies or
vehicle dealerships.
Subcontracting 2000 workshops for manufacturing, which allows for cost reduction.
a lot the costs.
Instant purchase culture, where people acquire products with the
fear of not finding them again.
By becoming a world-renowned company, the media
they promote their brand.
Disposition of a lot of information in commercials, nightclubs, universities and
more, to know what the trend is in the consumer.
With vertical integration, they have access to new distribution channels.
in addition to new access to intangible assets.
Access to new technologies for the manufacturing of their products.
Acquisition of raw materials from abroad to initiate the process
of production.

SWOT Analysis: Weaknesses


Does not advertise in front of the competition, so its brand has less
visibility to their clients.
Due to their low prices, it does not allow exclusivity in its brand; anyone can...
any economic level can wear the brand.
The company has not expanded into the wholesale sector, it only makes its sales
minority in its own stores.
Having several chains with the same products and targeting the same sector, one
they compete with each other.
The centralized distribution makes transportation costs high.
The store staff is not oriented to better perform their work as they do not
receives specific training.
Having stores with so many floors, people do not have the confidence to
explore it, since clothing stores generally are not like that.
The products they offer are more aimed at the female and teenage audience.
With small quantity collections, price reductions are prevented.
products demotivating the customer.
Vertical integration reduces the flexibility of the company.
Inability to see the required change in the product or in marketing
for having the attention fixed on the cost.

Threats
Entry of new competitors into the market, who adopt the same system as you.
sales.
By allowing the customer to change or return products with such flexibility, it
they can generate economic losses due to the opportunistic culture of people.
Competing stores that open their doors near where one is already located.
company store.
Failing to enter a market where other brands already exist.
renaming.
Market saturation, where consumers have so many products from the
they choose another from the same brand.

They invest many resources in products that may not have value over time.
market.
Fixed costs, coordination, and management increase as the company becomes
more complex as its structure increases.
They cease to be innovative due to the increases in costs in the structure of the
company.
To continue innovating, it has to reinvest in modern equipment and discard
unrelentingly the obsolete assets, spending more.

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