Zara SWOT Analysis

Zara SWOT Analysis

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Strengths

Vertically Integrated System in One Geographic Area Helps Speed Up Products
Fast Fashion at Zara They can get fashionable products to market much quicker than rivals.
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Latest fashion trends
Many stores around the world
Strong Distribution Channels at Zara
Each Store Wants Customer Comments and Opinions
Bigger Than the GAP
Deals With Mostly the Supply Chain
Each Style of Clothing Relates to a Specific Trend
Clothing for Men AND Kids
Unique Clothing
Low Inventor Assures that Items Sell Out Quickly This system helps to reduce costs and increase profits by turning over more clothing.
Point of Sale System Allows Zara to Monitor Trends At Each Store
Gather Customer Comments and Opinions At Each Store They send these comments to headquarters in Spain, which produces clothing to supply their stores.
Saves Time to Market By Not Outsource the Manufacturing of Products
Monitors Fashion Trends Versus Guessing At Trends Zara doesn't try to predict the trend, they simple monitor trends and produce clothing quickly to...
Low Cost, High Quality Supply Chain This advantage allows Zara to have higher quality while still maintaining low costs.
Strong Distribution Network at Zara
Inexpensive But Fashionable The clothing is fashionable, but it's also affordable. This allows zara to undercut rivals and still...

Weaknesses

la force de zara
Clothes are plain
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low in-store inventory (including low safety stock)
centralized production
Similar to H&M
Customer's have to travel far in order to get to Zara
Euro-Cetric Model
Online Presence at Zara is Weak
Advertising
bad quality

Opportunities

Online markets offer huge growth and a chance to expand
Growth in the USA
Emerging Market Offer the Best Growth Opportunities for Zara India, China and Brazil offer the best opportunities for Zara to expand long into the future.
Growth in the United States Has Huge Potential
International Expansion Especially In Emerging Markets

Threats

C&A TAKES THE MARKET
no advertising campaign
Higher price tag than major competitors such as H&M
Currency Value in Euro Hurts global competativeness
Potential Oversaturation in Europe
Currency Value In Europe Hurts Global Competitiveness
Natural Disaster or Power Outage Anything that can stop Zara's manufacturing base in Spain from producing clothing could hurt the...
Manufacturing Base in Spain May Become Expensive If rivals manufacture goods in China or other low cost areas, then Zara must match their prices if...
H&M is a Constant Competitor to Zara

Zara SWOT Analysis Profile

Click the edit link to start a description for Zara. (read full profile)

Additional Information

What is a SWOT Analysis? It is a way of evaluating the strengths, weaknesses, opportunities, and threats that affect something. See WikiWealth's SWOT tutorial for help. Remember, vote up the most important comments. Check out WikiWealth's entire database of free SWOT reports or use our SWOT analysis generator to create your own SWOT template.

SWOT Conclusion

Strengths + Opportunities = 26

Threats + Weaknesses = 20

Zara has far more strengths than weaknesses. … A history of overcoming weaknesses makes it difficult for other firms to exploit their difficulties. The ability to capitalize on opportunities get rewarded with higher profits and lower costs.

SWOT Analysis Survey

History of fixing weaknesses?

History of capitalizing on opportunities?

History of defending against threats?

History of maintaining strengths?
Page tags: _opportunity:capitalize _weakness:fix zara
page revision: 95, last edited: 23 May 2013 14:30
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