The company’s major weakness is the ever-changing trends that limit its ability to optimize the sales of particular brands. Below is the best-stipulated SWOT matrix adopted by the Zara Company.Ī SWOT analysis on Zara implicated the existence of significant strengths as increased customer loyalty to the company’s brand the loyalty highly enhances profitability. The company has a dedicated staff whose target is to improve and renew customer satisfaction consistently. Internal Analysisīased on strategic capabilities, Zara companies boast vast financial resources which have highly enhanced data collection as a strategy to improve the customer experience and satisfaction (Johnson et al., 2019). Further, continuous improvement in design and trends with the help of big data analysis will place Zara ahead of its competitors. Zara holds the largest segment of the global market hence the influence of the competitors will relatively be limited on a comparative basis. Being a component of stiff competition, Zara’s focus will lie on product improvement and effective pricing strategies to continue being the market leader ((Mahardika & Wayansantika, 2021). Strategically, the competitors of Zara have limited influence, particularly on the product.

Zara’s company is negatively impacted by its legal environment, particularly on aspects of copyrights. As the global most popular fashion reseller, the company boasts of its huge database and adequate funds to attain necessary data to improve operations. Technologically, Zara Company has adopted the use of big data to expand its reach. Under the external economic environment, Zara’s company is positively associated with a low labor cost. Being a Spanish brand Zara company is privileged to enjoy all benefits that include operating outside the European Union.

Firstly, Zara’s political environment is majorly associated with the European trade agreement. Comparatively, the highlighted aspects have been pivotal to Zara’s profitability which is also the fundamental element of its objectives.īeing the best-selling fast fashion brand, Zara was subsequently met with a list of external factors implicated by the PESTEL analysis below. Further, Zara has objectively aimed to make the production chain sustainable to meet the rising customers’ demands to achieve this, it has adopted a continuous improvement approach to its supply chain and production systems (Oliveira-Dias et al., 2020). Zara has established a customer-centric approach to avail products closer to their customer’s actions which have enabled the effective achievement of the company’s mission of producing 10,000 prices a year. For instance, Zara has incorporated a voluminous distribution approach to attain its vision. Zara’s mission is to ensure maximum production and a regular supply of clothing needs to customers. Recently, fast fashion companies have adopted a competitive strategy to attain their company’s vision. Currently, the business has a strategic focus on offering a higher number of quality products to its customers. Its emergence was majorly associated with the dressmaking business. The fashion company’s origin is traced to early 1963. It emerged in Spain and has spread globally, with over 10,000 stores distributed. Zara is one of the most recent successful fast fashion company brands globally.

Zara penetration pricing