Swot Analysis On Zara

This essay would be based on discussion of SWOT analysis for Zara. This is one of the most frequently used methods of strategic analysis. It involves working through the strengths, weaknesses, opportunities, and threats that lay in front of the organization (Hall and Gray, 2015).

Zara has many strengths. First of many is uniqueness. Clothes created are in line with the latest trends but in their own desirable way. Secondly, there is a vast range of products and prices. The company has a ‘Special Price’ tab with low prices, more expensive Zara Woman collections, along with many more. Therefore, the brand has a wide range of products in various price options, for many people regardless of age, or gender.

The main advantage is a countless number of customers around the world. Currently, the brand has over 2,200 stationary stores in 96 countries and online shops in 46 countries (Inditex, 2018; Forbes, 2018). As a result, the company is placed at 46th in Forbes ranking with the estimated value of 13 trillion dollars (Forbes, 2018). It appears that the company builds very good strategies to know how to gain in customer’s eyes, and also determine their need for improving the income at the same time.

Nevertheless, the company also has a weakness. Zara copies designers’ products and claims them as their own. Often their clients find identical clothes to those from catwalks. Some of many examples are patches from Tuesday Bassen (Purglise, 2016) or sneakers from Balenciaga (Daily Mail, 2018). Many people find such behavior dishonest, and injustice. Based on the above It is believed that the company should not copy someone’s work.

Moreover, Zara doesn’t spend as much on advertising as its competitors such as H&M. Impact of advertising is best shown on H&M collection created cooperating with Balmain. These clothes were worn by celebrities before the premiere. Consequently, the brand became more popular. Not to mention that when the new products have been released they were shortly sold. Soon the only option was to buy them from private individuals, highly overpriced (Lidbury,2015).

There are many opportunities. Mainly, the brand should take advantage of its presence in the USA. Now, they have only 87 stores in the USA, where, in Spain, they own 563 (Forbes,2018). It should be noted that the USA is many times larger than Spain. Due to its large presence in Europe, Zara must focus on the USA to progress and expand the market even further.

Like other company, Zara also has threats. Most importantly, they are not working with designers as their competitor H&M, and as mentioned Zara uses designs without the creator’s consent or knowledge. This might affect the future sale and go in favour of the competition. H&M, for instance, cooperate with well-established designers. Due to these clients can buy designer’s clothes at affordable prices, which not only gives H&M many customers but draw them from ZARA.

Despite the lack of adverts, strong competition, and copyrights company is pushing forward. It is expanding rapidly and gaining customers every year. It’s unethical to copy projects, but the way brand is managed, works for it perfectly.