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Micro and Macroeconomic Outlook of Zara

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NasserAlhumali

This document provides an overview and analysis of the Spanish fashion retailer Zara. It begins with an introduction to the company's history and operations. It then includes sections on a SWOT analysis, Porter's Five Forces analysis, a PESTLE analysis, and a conclusion. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors that affect Zara. It finds that factors like trade agreements, labor costs, brand perception, technology use, sustainability efforts, and fast fashion impacts all influence Zara's business environment. The document concludes that Zara's unique supply chain and efficient operations give it a competitive advantage in the market.

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1 of 20
2MICRO AND MACROECONOMIC OUTLOOK OF 00 Presenters: Praveen C V Rashid Shadid Yadav Mathoorasing Nasser Suhail Rasheed
CONTENTS INTRODUCTION 01 SWOT ANALYSIS 02 PORTER 5 FORCES 03 PESTLE ANALYSIS 04 CONCLUSION 05
1. INTRODUCTION Overvie w  Founded in 1974 by Mr Amancia Ortega  ZARA is a Spanish clothing retailer based in Galicia, Spain  Part of and a flagship of its parent company Inditex  World renowned brand in the clothing industry  Operates 2,220 stores and present in 88 countries  Has long been regarded as a leader in fast fashion, owing to its very responsive supply chain  Presents itself as an environmental friendly company
02. SWOT ANALYSIS
STRENGTHS  Vertical Integration  Lower product prices  Unique and numerous design style  Highly efficient
Weaknesses  Low product quality  Overexpansion of scale  Bad reputation of plagiarism
Opportunity  External Factors that helps Zara rise  E-Commerce  Consumer Potential  Rapid Delivery Cycle  Growing Market Potential and Market Expansion
Threat  External Factors that pulls Zara down  Competition  Price battle with other competitors  COVID-19  Imitation
03. PORTER 5 FORCES About us CONTENT
04. PESTLE ANALYSIS Spanish lifestyle and retail brand Zara In Zara PESTLE analysis, we are going to take a closer look at this lifestyle and retail brand, and how its future may be affected by associated global changes. ZARA Political Economic Social Technology Legal Environment
Political Factors that Affect Zara • European Trade Agreements • Zara as a Spanish brand enjoys all of the benefits of operating a business out of the European Union. In a political context, one of the biggest pros of running a company in the EU is the country’s extensive trade agreements. Not only does this make it incredibly easy to import raw materials and export finished products within the European Union, but it also means that Zara can send its merchandise across the world with little effort and for a low cost • political disruption • Another major factor that affects the market is political disruption as it affects the economy and disrupts supply chain. Zara overcame this problem by limiting its supply chain operations in its home country and some neighboring nations.
Economical Factors that Affect Zara • Low Cost of Labor • Since Spain has one of the highest unemployment rates within Europe, this means that it has a relatively low cost of labor — especially in comparison to other Western European countries, such as France, Germany, and the United Kingdom. • Relative Affordability • Zara is considered a relatively affordable brand in comparison to other European highstreet fashion names. This allows the company to thrive even in poorer countries • Price discrimination • Due to different customs duties and level of tariffs in various countries, the prices of zara products vary in different countries, According to some research demonstrating pricing differences in various countries, 22% to 24% higher in France, Italy and Germany ,, big differences between the countries.
Social Factors that Affect Zara • Fashionable Brand • Zara delivers a good-quality product for not a lot of money. And thanks to the brand’s clever marketing efforts, it feels rather exclusive for buyers. Overall, this strong, positive brand presence allows Zara to collect healthy profit margins for its shareholders, while buyers still feel like they’re getting a great deal. • Sizes of clothes • Zara creates its products while keeping the basic factors like, geographical position, race and origin of the country population. So you can find clothes for someone who is very skinny or for someone who is heavy weighter. It gives the company a social advantage
Technological Factors that Affect Zara Role Just like a tech firm A nearly physical online experience Inference
Legal Factors that Affect Zara Ethics and sustainability Litigation Changes In Different Countries Copyright Issues Future
Environmental Factors that Affect Zara Environmentally sustainable business Fast Fashion Impact Environmental Disasters What lies ahead?
05. CONCLUSION Zara manages to stay up at the revenue growth due to its unique and strong model of the business. Unique supply chain infrastructure and efficiency of the business operation give the company the competitive advantage, which reflects in their sales and revenues.
• https://blog.contactpigeon.com/zara- ecommerce/ • https://www.diva- portal.org/smash/get/diva2:1312256/FULLTEX T01.pdf • https://www.ukessays.com/essays/marketing/ the-international-growth-of-zara- marketing-essay.php • https://retailtouchpoints.com/features/tre nd-watch/why-is-zara-sprinting-away-from- the-competition • https://www.scirp.org/journal/paperinforma tion.aspx?paperid=108440 • https://www.marketing91.com/swot-analysis- zara/ • https://www.ie.edu/insights/articles/zara- technology-and-user-experience-as-drivers- of-business/ • https://www.marketingtutor.net/zara- pestle-analysis/ • https://myassignmenthelp.com/case- study/zara-case-study-swot-analysis- solution.html • https://desklib.com/document/pestle- analysis-of-zara/ • https://www.mbaskool.com/pestle- analysis/companies/17975-zara.html REFERNCES
• Q. Tian, Research on the Marketing Strategy of Spanish Brand ZARA in China. Dalian Maritime University,2019. DOI: 10.26989/d.cnki.gdlhu.2019.000349 • W.C. Li, Research on the Marketing Strategy of Fast Fashion Brand ZARA in China. Jilin University of Finance and Economics, 2019. DOI: 10.26979/d.cnki.gccsc.2019.000483 • L.Y. Guo, Analysis of the Supply Chain Management Model of Fast Fashion Apparel Industry. Chinese and Foreign Entrepreneur, 11(2019) 224-225. • K. Ning, The Way of Cost Management of "Fast Fashion" Brands - Taking Spanish product ZARA as an Example. China Business Review, 18(2020) 24-25. DOI: 10.19699/j.cnki.issn2096- 0298.2020.18.024 • https://www.businessoffashion.com/organisations/zara • https://toughnickel.com/industries/Business-Operations-of-Clothing-Retailer-Zara REFERNCES
Micro and Macroeconomic Outlook of Zara

More Related Content

Micro and Macroeconomic Outlook of Zara

  • 1. 2MICRO AND MACROECONOMIC OUTLOOK OF 00 Presenters: Praveen C V Rashid Shadid Yadav Mathoorasing Nasser Suhail Rasheed
  • 2. CONTENTS INTRODUCTION 01 SWOT ANALYSIS 02 PORTER 5 FORCES 03 PESTLE ANALYSIS 04 CONCLUSION 05
  • 3. 1. INTRODUCTION Overvie w  Founded in 1974 by Mr Amancia Ortega  ZARA is a Spanish clothing retailer based in Galicia, Spain  Part of and a flagship of its parent company Inditex  World renowned brand in the clothing industry  Operates 2,220 stores and present in 88 countries  Has long been regarded as a leader in fast fashion, owing to its very responsive supply chain  Presents itself as an environmental friendly company
  • 5. STRENGTHS  Vertical Integration  Lower product prices  Unique and numerous design style  Highly efficient
  • 6. Weaknesses  Low product quality  Overexpansion of scale  Bad reputation of plagiarism
  • 7. Opportunity  External Factors that helps Zara rise  E-Commerce  Consumer Potential  Rapid Delivery Cycle  Growing Market Potential and Market Expansion
  • 8. Threat  External Factors that pulls Zara down  Competition  Price battle with other competitors  COVID-19  Imitation
  • 9. 03. PORTER 5 FORCES About us CONTENT
  • 10. 04. PESTLE ANALYSIS Spanish lifestyle and retail brand Zara In Zara PESTLE analysis, we are going to take a closer look at this lifestyle and retail brand, and how its future may be affected by associated global changes. ZARA Political Economic Social Technology Legal Environment
  • 11. Political Factors that Affect Zara • European Trade Agreements • Zara as a Spanish brand enjoys all of the benefits of operating a business out of the European Union. In a political context, one of the biggest pros of running a company in the EU is the country’s extensive trade agreements. Not only does this make it incredibly easy to import raw materials and export finished products within the European Union, but it also means that Zara can send its merchandise across the world with little effort and for a low cost • political disruption • Another major factor that affects the market is political disruption as it affects the economy and disrupts supply chain. Zara overcame this problem by limiting its supply chain operations in its home country and some neighboring nations.
  • 12. Economical Factors that Affect Zara • Low Cost of Labor • Since Spain has one of the highest unemployment rates within Europe, this means that it has a relatively low cost of labor — especially in comparison to other Western European countries, such as France, Germany, and the United Kingdom. • Relative Affordability • Zara is considered a relatively affordable brand in comparison to other European highstreet fashion names. This allows the company to thrive even in poorer countries • Price discrimination • Due to different customs duties and level of tariffs in various countries, the prices of zara products vary in different countries, According to some research demonstrating pricing differences in various countries, 22% to 24% higher in France, Italy and Germany ,, big differences between the countries.
  • 13. Social Factors that Affect Zara • Fashionable Brand • Zara delivers a good-quality product for not a lot of money. And thanks to the brand’s clever marketing efforts, it feels rather exclusive for buyers. Overall, this strong, positive brand presence allows Zara to collect healthy profit margins for its shareholders, while buyers still feel like they’re getting a great deal. • Sizes of clothes • Zara creates its products while keeping the basic factors like, geographical position, race and origin of the country population. So you can find clothes for someone who is very skinny or for someone who is heavy weighter. It gives the company a social advantage
  • 14. Technological Factors that Affect Zara Role Just like a tech firm A nearly physical online experience Inference
  • 15. Legal Factors that Affect Zara Ethics and sustainability Litigation Changes In Different Countries Copyright Issues Future
  • 16. Environmental Factors that Affect Zara Environmentally sustainable business Fast Fashion Impact Environmental Disasters What lies ahead?
  • 17. 05. CONCLUSION Zara manages to stay up at the revenue growth due to its unique and strong model of the business. Unique supply chain infrastructure and efficiency of the business operation give the company the competitive advantage, which reflects in their sales and revenues.
  • 18. • https://blog.contactpigeon.com/zara- ecommerce/ • https://www.diva- portal.org/smash/get/diva2:1312256/FULLTEX T01.pdf • https://www.ukessays.com/essays/marketing/ the-international-growth-of-zara- marketing-essay.php • https://retailtouchpoints.com/features/tre nd-watch/why-is-zara-sprinting-away-from- the-competition • https://www.scirp.org/journal/paperinforma tion.aspx?paperid=108440 • https://www.marketing91.com/swot-analysis- zara/ • https://www.ie.edu/insights/articles/zara- technology-and-user-experience-as-drivers- of-business/ • https://www.marketingtutor.net/zara- pestle-analysis/ • https://myassignmenthelp.com/case- study/zara-case-study-swot-analysis- solution.html • https://desklib.com/document/pestle- analysis-of-zara/ • https://www.mbaskool.com/pestle- analysis/companies/17975-zara.html REFERNCES
  • 19. • Q. Tian, Research on the Marketing Strategy of Spanish Brand ZARA in China. Dalian Maritime University,2019. DOI: 10.26989/d.cnki.gdlhu.2019.000349 • W.C. Li, Research on the Marketing Strategy of Fast Fashion Brand ZARA in China. Jilin University of Finance and Economics, 2019. DOI: 10.26979/d.cnki.gccsc.2019.000483 • L.Y. Guo, Analysis of the Supply Chain Management Model of Fast Fashion Apparel Industry. Chinese and Foreign Entrepreneur, 11(2019) 224-225. • K. Ning, The Way of Cost Management of "Fast Fashion" Brands - Taking Spanish product ZARA as an Example. China Business Review, 18(2020) 24-25. DOI: 10.19699/j.cnki.issn2096- 0298.2020.18.024 • https://www.businessoffashion.com/organisations/zara • https://toughnickel.com/industries/Business-Operations-of-Clothing-Retailer-Zara REFERNCES