INTERNAL FACTORS

STRENGTHS (+) IMPORTANCE

Zara is one of the most efficient clothing

companies in the world when it comes to
all operational processes –
manufacturing, delivery, supply chain
and logistics. Reportedly, the company
1 needs just 1 week to develop a new
Efficient manufacturing & delivery –
product and get it to all 2,259 stores it has
worldwide, compared to an industry
average of 6 months. This gives Zara a
huge advantage when it comes to
delivering new designs in record time.

additionally, the company also offers a

2 Competitive pricing –
very competitive pricing for the variety
and amount of products it offers. Its
clothing is targeted to a middle class
audience, although it´s also true that
the pricing is adapted to the
characteristics of each market. For
example, the prices for Zara in South
Korea are 96% higher than the prices in
Spain, taking into account the exchange
rate of the study.

As we already mentioned, Zara has over

2,200 stores across 96 countries,
3 Strong global presence – positioning itself as a strong international
brand with a solid support (Inditex,
with over 7,000 stores).

the company is known for imitating high-

4 Fast reaction to new trends –
fashion trends, and it is extremely fast
when it comes to spotting and replicating
them for its own products.
The company´s strengths is what makes it
one of my favourite SWOT analysis
examples on this list. They are very well
defined, and definitely makes Zara stand
out from competitors.

EXTERNAL FACTORS
OPPORTUNITIES (+) IMPORTANCE
 currently, there is a growing demand for
clothing that looks high fashion, but don´t
cost thousands of dollars for a single
1 piece. This is a great opportunity for
Growing demand for high fashion –
Zara, which does precisely what people
want – selling high fashion style for
affordable prices.

as customer behavior is changing, people

get bored with everything faster than
ever. And this is true for fashion as well –
clothes that people would wear for
2 Fast fashion – months and years now get substituted
with new pieces much more often. Which
is another excellent opportunity for Zara
as the so-called “fast fashion is on the
rise”.

according to Statista, the growth of the

apparel market is steadily increasing by
3 Market growth –
5-6% every year, which is great news for
clothing companies like Zara.
ZARA Company
INTERNAL FACTORS

WEAKNESSES (–)

1 Zero policy advertising –

2 Limited product stock –

3 Controversies –

4 High fashion imitation –

EXTERNAL FACTORS
THREATS (–)
1
Growing competition –

2 Increasing costs –

3 Regulatory threats –
 IMPORTANCE

the company is famous for its zero policy

advertising. This means that, instead of
investing in Marketing and Communication
actions, they use the money for opening new
stores. Although this policy has some
awesome benefits, I think that it´s also a
very big weakness. The heavy digital
advertising done by competitors can
completely overshadow Zara in the long
run.

Limited product stock – because Zara

delivers fashion pieces in record time, they
don´t produce as much stock as other
companies would. Which is not great news
for customers who often love a piece, and it
is already out of stock – or simply not in the
size they need.

additionally, the company is also involved in

multiple controversies revolving child
labour and paying under minimum wage.
As people are getting more and more
conscious about these topics, these
controversies is doing a lot of harm to the
company´s reputation.

as we already mentioned, Zara is known to

imitate fashion trends. Which means that
they are not a trend setter, and they do not
offer a lot of unique and creative pieces
designed exclusively by them.

IMPORTANCE
the increasing demand for fashion and
apparel also means that competition is
growing as well. With huge online providers
taking over the Internet such as ASOS,
Fashion Nova, Shein and others, Zara´s
popularity is becoming threatened by other
companies. Especially considering the fact
that these providers actually offer products
from multiple brands at the same place.

another tendency that could impose a

significant threat for Zara are the
increasing costs for production and raw
material. Which, as a consequence, will
probably reduce its revenue and profit
margins. Especially considering the fact the
prices are already relatively low! For now,
Zara has managed to develop a well
integrated and efficient supply chain that
keeps the cost of raw materials low. But this
might not last forever, especially if the
prices keep rising.

the business industry is gradually getting

more and more regulated. On a global scale,
governments and legal agencies are
regulating all kind of sectors and businesses,
and the fashion market is not an exception.
This includes labour, quality, customer
services, and many other aspects of the
industry. All of these regulations might
eventually have a negative impact on Zara.