Preview

Swot Analysis

Good Essays
Open Document
Open Document
1263 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Swot Analysis
Mission of Zara 1. Response very quickly to the demands of target customers, who were young, fashion-conscious city dwellers and their tastes in clothing changed rapidly and hard to predict 2. Take advantage of intelligence and trust the judgment of employees throughout the company instead of relying on a small set of decision makers
SWOT Analysis
SWOT analysis analyzes current situation of organization and identifies factors that may affect desired future outcomes of the organization. The SWOT model is based on identifying the organization’s internal strengths and weaknesses, and threats and opportunities of the external environment.

Pic1.The Form of presented SWOT analysis Strengths | 1 | Ability to recreate fashion, ZARA had great discretion in deciding what clothes would be design and produced. Collection were created, extended and design over time by team of commercials and were based on garment availability in stores. | 2 | Some group of commercials traveled extensively, observing residents needs and tastes and try to learn what kind of clothes would sell if Zara made them. So clothes would be design and produced based on regional sales patterns. | 3 | Store manager could store-to-store transfers when they saw that garments selling slowly in one area were popular in another | 4 | Commercial function also exercised a great deal of autonomy. Commercials decisions were not typically reviewed by higher level managers. Zara trust the judgment of employees | 5 | Active use of stores, Zara spend relatively heavily on its stores. They are located in a city`s prime retail distinct, often on the best-known street, store layout were completely changed every four to five years. Zara has team to design the layout of the store | 6 | Zara has center that set and control the price of the products over the world | 7 | Small Quantity Production. Maximizing Product Scarcity, Push customers to buy their product immediately and Increasing the

You May Also Find These Documents Helpful

  • Best Essays

    Airline and Zara

    • 2445 Words
    • 10 Pages

    ZARA faced a huge sum of money on compensation of plagiarism. However, consumers seem to favor the ZARA because of its high imitation ability of brand-name products.…

    • 2445 Words
    • 10 Pages
    Best Essays
  • Good Essays

    Zara Case Write-Up

    • 1277 Words
    • 6 Pages

    The business idea of Zara is to link customer demand to manufacturing, and to link manufacturing to distribution. And based on this general idea, Zara has several essential elements for its business model. First, speed and decision making, which means that in the external level, Zara need to respond very quickly to demands of target customers, and always keep in style. While for the inside, Zara treasure intelligence and judgment of common employees who enjoy a great deal of autonomy. Second, its marketing, merchandising and advertising strategy. Zara does not spend on virtually advertising, while it spends heavily on stores, and no selling online because of the nature of its DCs and complication of online selling. Also, Zara has clear positioning that its clothes are always in style and not for durable use. Third, Zara has lots of stores and large scales, which has promising financial achievements as well as potential growth point. In general, Zara has a business model of preferences for speed and decentralized decision making.…

    • 1277 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Zara Good Response Example

    • 1341 Words
    • 5 Pages

    Zara’s preference for speed and responsiveness has been formulated since its inception. Zara tries to…

    • 1341 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Zara Corporate Strategy

    • 1209 Words
    • 5 Pages

    Capabilities of Zara, or the required resources needed to exploit the opportunities and execute this conceptual strategy, are numerous for Zara. Zara maintains tight control over their production processes keeping design and manufacturing in-house or with some strategic partnerships located nearby Headquarters. Currently, Zara maintains 80% of its production processes in Europe, 50% in Spain which is very close to La Coruña headquarters. They have strategic agreements with local manufacturers that ensure timely delivery and service. Through these strategic partnerships and the benefits brought by this proximity of manufacturing and operational processes, Zara maintains the flexibility necessary to design and produce over…

    • 1209 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Zara Global Strategy

    • 407 Words
    • 2 Pages

    Zara competitiveness as highlighted in number 4 managed to travel globally successfully. As 55% of Zara revenues coming from abroad, one can see that Zara was successful in migrating its competitiveness globally. By adapting to each culture, Zara has managed to position itself differently in different market. Zara strategy of opening one store for information gathering in the initial phase of entering a new market is one of its key strength points. By starting with such "information gathering" store, Zara manages to obtain insight of the local market and how best to adapt to it.…

    • 407 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Macro Environment of Zara

    • 926 Words
    • 4 Pages

    Zara is one of the most famous and popular high street brands in the world. It is a brand from Spain and it belongs to the Inditex group. Inditex group consist of seven different clothing chains of which Zara is considered as a fast fashion brand which aims at low inventory rule; just in time manufacturing; delivery and sales, flexible structure, low inventory rules and quick response policy.(Castellano, 1993). The first Zara store opened in 1975 in Spain. On product manufacturing basis, Zara strategizes by manufacturing majority of their clothes in Spain and Portugal unlike many other top brands, which outsource them to Asian counties such as China and India. (Castellano, 2002) One of Zara’s key marketing highlight has been in in zero advertising strategy, it instead markets its product by investing their percentage of revenues in opening new stores.. Zara is known to meet the customer demands and they are flexible in adjusting to the changing demands quickly. They are also variable when it comes to product design; as it keeps changing once in four weeks. (The Economists, 2005)…

    • 926 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Zara Fasion King

    • 1731 Words
    • 7 Pages

    At the heart of Zara 's success is a vertically integrated business model spanning design, just-in-time production, marketing and sales. The key to this model is the ability to adapt the offer to customers desires in the shortest time possible. For Zara , time is the main factor to be considered, above and beyond production cost. The group believed that vertical integration gave it more flexibility than its rivals to respond to fickle fashion trends. With the European markets becoming saturated, Zara had been looking at stretching its product line and furthering its global expansion.…

    • 1731 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Stp(Brief) of Zara

    • 288 Words
    • 2 Pages

    Zara strategy launches its outlets in high profile locations and provides customers with a turnover time of 4-5 weeks for its new collections made available at a fraction of the couture cost. This, along with the brand persona, the collection of the clothes and accessories and the marketing campaigns pulls the target markets to the Zara stores…

    • 288 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Capacity Planning In Zara

    • 385 Words
    • 2 Pages

    Zara is one of the famous brands of the Spanish retail group. It sells up-to-the-minute 'fashionability' at low prices, in stores that are clearly focused on one particular market. (Slack, Chambers, Betts, & Johnson, 2006)…

    • 385 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Zara Case Study

    • 1746 Words
    • 5 Pages

    Zara is known for its stylish designs, many with a resemblance to the offerings of famous Italian fashion houses and all moderately priced. Despite this very recent popularity, the novel business model of Zara has gone virtually unnoticed for over 30 years, allowing Zara’s parent company, Inditex, to grow from zero to almost $20B in revenues. Zara was founded in 1975 and its parent company, the Inditex group went public in 2001. Within the first 5 years of its founding, Amancio Ortega, the founder of Zara figured out the responsiveness and speed were key to dominance in apparel retail as opposed to costs. Zara produced in expensive locations and used expensive shipping modes to react to trends faster. Zara stores number 450 in 29 countries (220 in Spain). With new stores typically 1,200 square meters in size, the Zara stores sell 10,000 men’s, women’s and children’s apparel models created every year under Ortega’s watchful eye at Inditex at Arteixo-La Coruña.…

    • 1746 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Zara's Case Study

    • 1358 Words
    • 6 Pages

    Zara’s value proposition is that it offers its customers cutting edge fashion at very affordable prices. It actively seeks out what styles are “hot” in the fashion world. After Zara has identified the latest trend it can have the clothes on sale in their prime locations worldwide, this is achievable because it has full control (Vertical Integration) of almost the whole garment supply chain from design to retail within three weeks. A typical Zara customer visits the store 17 times a year compared to the average of 3 times per year for other retailers.…

    • 1358 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Supply Chain and Zara

    • 644 Words
    • 3 Pages

    Zara sells to customers at their own retail stores, each managed by a retail manager who gives feedback on fashion trends to the design team.…

    • 644 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Zara Case

    • 4334 Words
    • 18 Pages

    Today,over 650 Zara stores in some 50 countries attract wellheeled c ustomers in luxury shoppin g districts a roun d t h e…

    • 4334 Words
    • 18 Pages
    Powerful Essays
  • Satisfactory Essays

    Zara: Fast Fashion Case

    • 480 Words
    • 2 Pages

    Firstly, everything is connected through centralized hubs. Zara has its main operations in Spain, but with each expansion into a new country, that country has its own centralized Zara facility. This allows for local factors to be considered in each market, but gives Zara an excellent line of communication and ultimate control of all operations. The in-house designs are sourced this way, through representatives in each country bringing forth new fashion concepts for the upcoming season. These concepts are then whittled down by cost, feasibility, and market trends. Then the designs are prototyped and manufactured. The manufacturing is also mostly owned by Zara’s parent company, helping reduce costs and lead times. From manufacturing, products are then packaged and labeled back at headquarters for shipping. Most of the shipping is via trucks. Overseas shipping is by air, which means the prices are adjusted so that overseas customers bear this cost. The retail storefronts are setup so that products aren’t on the shelves for more than 3 weeks. This along with careful inventory control create the illusion of scarcity. The marketing is also related in that Zara only places ads twice a year, around the sales seasons. This helps to prevent over-exposure, so that the fashion-forward customers feel trendy. The scarcity factor also helps reduce loss. If a product bombs in one store, it’s pulled immediately, to either be sold in another location or discounted to local partners. This means that if a product isn’t doing well, it doesn’t sit forever in the store wasting space that could be used to display a profitable product.…

    • 480 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Zara

    • 317 Words
    • 2 Pages

    Zara is known for it fast paced fashion development by designing and producing products within a number of weeks to which they are then present in the store's and the products are allowed to be sold to the public. "Zara needs just two weeks to develop a new product and get it to stores, compared with a six-month industry average, and launches around 10,000 new designs each year" (ZARA, Business Week, 2006) Zara has a very different approach compared to other companies within the industry, one by zero advertising, the company believe that the do not need to advertise their company and products and by doing so so the company believed that opening new stores would allow them to become more successful and profitable. Another way Zara resisted the industry is by transferring fast fashion production to low cost countries.…

    • 317 Words
    • 2 Pages
    Satisfactory Essays