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Zara Sales Analysis Essay Example

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Zara Sales Analysis Essay Example
The Macro environment :

The macro environment of a firm is the external factors that concern directly the firm itself. In this environment, we can include the Social environment, the Legal environment, the Economical environment, the Political environment and the Technological environment.

-The Social environment:
With the huge numbers of store (one more is opening in Sydney, Australia), Zara has settled in many countries. Therefore, the firm must respect the culture of each kind of customers, wherever they are from. Zara must create clothes that fit to every kind of culture around the world. Moreover, Zara only employ people that live next to the store. By encouraging local employment, Zara helps the country to fight Unemployment.

-The Legal environment:
The great numbers of shops also explain the variety of their legal status. Among them, they are Franchise (Not that much in France according to the information we collected in the store) and Joint Venture.

-The Economical environment: Since 1975, Zara has opened 2692 stores in more than 60 countries and has an average Turnover of 10 billion US$. This economical situation put Zara in the most famous and powerful clothes brands in the world.

-The political environment: Because of its presence all around the world, Zara must face the laws and rules of each country that has a store. Just like the Social environment, Zara must adapt its way of selling to these rules

The Technological environment:
Zara is special in the fact that they do everything about the clothes: They design, create and sell it. For the production, even though it was created in 1975, Zara uses high technology machine to create the clothes. Then, to supply the stores, it has a well develop distribution system.

The Micro environment:

The Micro environment is all the factors close to the firm itself: The Company (in its general view), People who buy goods (Customers) and finally the other firm that compete with the

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