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ZARA CASE STUDY

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ZARA CASE STUDY

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  1. CASE STUDY B Y - G L O B A L A S S I G N M E N T H E L P A U S T R A L I A

  2. INDEX World's No. 1 creative fashion brand. Founded in Spain & now serves worldwide About Us Company Journey SWOT Analysis PESTLE Analysis Porter's Five Forces Global Assignment Help Services

  3. ABOUT US ZARA is a Spanish apparel retailer. It specialises in fast fashion, and their products include clothing, accessories, shoes, swimwear, beauty, and perfumes. Competitors H&M, Uniqlo, Mango, Benetton, GAP USP It focus on high end fashion by imitating the latest trends. Follows 4E approach- experience, exchange, evangelism and every place strategies for the customer Target Audience All young fashion lovers with high or medium spending power Stores 6829 stores across the world

  4. TIMELINE Opened online stores in USA & Japan. In 2012 it revamped its image. Opened new high-profile stores It introduced the new distribution hub in Spain & Zaragoza Going really great with the profit of $812 million 1975 2002 2003-2010 2011-2013 2014-2017 PRESENT Opened First store in Spain in 1975 then expanded to New York & Paris ZARA opened its first outlet in 2003. Expanded globally to 56 countries. First online store in 2007. Till 2010 it expanded to 77 countries Reached 7000 stores milestones. The company started selling through Zara.com in India

  5. STRENGTHS WEAKNESSES Stores Supply Chain Design Team Brand Awareness Pioneer Advantage Short Lead Time Fast Fashion Reliance on Physical Stores AI Enabled Prediction W S THREATS OPPORTUNITIES Threats of new entrants Competition Price War Government Regulation Uncertainties like Covid-19 O T Eco friendliness Re-Sale Variations in designs Expanded online market Increased stores

  6. P European Trade Agreement- it enjoys all of the benefits of operating a business out of the European Union. Low Cost of Labour-low cost of labour in Spain is a positive for the brand Relative Affordability- Considered affordable in comparison to other expensive brands E S Fashionable Brand-Zara is a fashionable name for most shoppers. Online Shopping Trend T L Use of Big Data- ZARA is using big data to reach and appeal to consumers. PESTLE ANALYSIS Copyright Issues-For all fashion brands, copyright law is one of the scariest legal branches out there. E Fast Fashion Impact Sustainability PLedge

  7. THREAT OF SUBSTITUTES BARGAINING POWER OF CUSTOMERS BARGAINING POWER OF SUPPLIERS COMPETITIVE RIVALRY THREAT OF NEW ENTRANTS Zara faces stiff competition with major retailing brands like H&M, GAP, UNIQLO, Mango, Forever 21 etc. Product substitution in retail industry is very high. In the fashion industry, all "substitution" is just competition. Upcoming brands are major threat to ZARA who provide products at affordable prices Bargaining power of customers/Buyer is moderate. Bargaining power of suppliers is low and almost insignificant.

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