Zara SWOT Analysis
Here is a detailed SWOT analysis of Zara covering strengths, weaknesses, opportunities and threats.
Zara Strengths
- Zara have more than 2000 stores all over the world
- Part of one of the most biggest Spanish retailers in the world
- Zara have a well established brand name worldwide
- Their supply chain management is extremely low cost as well as most of their processes like operations, manufacturing are all vertically integrated
- Strong online presence through their own website and other ecommerce platforms makes Zara a popular brand name
- Clothes are produced at a competitive price with the most innovative and fashionable designs
- Zara offers extremely trendy, well designed and fast delivery of new products
- Apart from clothes, Zara also offers handbags, shows etc.
Above are the strengths in the SWOT Analysis of Zara. The strengths of Zara looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
Zara Weaknesses
- Limited marketing and advertising as compared to some other brands
- High competition for Zara means limited market share and high brand switching
- Zara is perceived to be an expensive brand
- Zara is not very active in the online space though it is available through online channels with partners
These were the weaknesses in the Zara SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
Zara Opportunities
- There are more global markets which Zara can explore
- They can also enter into segments and expand those areas where they haven’t
- Online marketing and ecommerce is gaining importance which can be tapped by Zara
Above we covered the opportunities in Zara SWOT Analysis. The opportunities for any brand can include prospects of future growth.
Read more about Zara
Zara Threats
- The high end fashion merchandisers can be a major threat to them
- Economic downturn can also be a threat to their target segment
- There is a large amount of consumer switching taking place
- Fake imitations can decline the sale of Zara products and hurt business
The threats in the SWOT Analysis of Zara are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
Hence this concludes the Zara SWOT analysis.
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About Zara
The table below gives the brand overview along with its target market, segmentation, positioning & USP
| Zara Overview | |
|---|---|
| Parent Company |
Inditex Group |
| Category |
Apparel and Accessories |
| Sector | |
| Tagline/ Slogan |
Zara |
| USP |
Zara offers perfect combination of high end, chic clothing at premium prices |
| Zara STP | |
| Segmentation |
Clothes for people with a combination attitude of work and play |
| Target Market |
People with Medium to high purchasing power who love to look glamorous at all times |
| Positioning |
Zara offers classy high quality clothes based on consumer trends |
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