Zara is one of the leading textile industries which always help fast fashion retailers. It had nearly 120 stores in many countries. By applying the porter’s five force theory.
Competitive industries- As Zara was the biggest company many companies compete due to the quality of the products it will be always in the leading position. Gap was one of the industries which always compete with the Zara. By changing the trends in clothing and launching the trendy clothes Zara will be top priority for many fashion freaks.
Supplier power- Due to many circumstances in today world there would be fewer amounts for the suppliers in many countries. But Zara provide the license to the supplier to avoid any problems. Supplier bargaining power would be sometimes strong.
Buyer power- By the good quality loyal customers of the Zara will always be stable and buy the products. They will invest on all the new items which are introduced in the market. About 90% of the clothing will be sold. By advertising many of the people are being attracted to Zara.
Threats- Among all the brands gap and H&M compete with the Zara because they both also maintain the same quality and the prices.
New Entries- Many of the brands are being entered but Zara had created a level to their loyal customers so that they will not go for other brands because of main criterion quality and price. By equity in brands and introducing new sales every month make the Zara more reputed company. 2.Zara’s core competencies would be speed and the high variety of fashion. By releasing the products with more varieties in the short span and products with high quality, low prices and offering all the latest fashions attracted the customers. By new innovations and high end varieties all these mixing products makes the Zara competitive with others and created a mark. In this short span no other company have achieved this position. Zara manufacture very small lots of fabrics by guessing the usage because this reduces the wastage.
3.Strengths
It was a part of one of the biggest Spanish retailers.
Good brand name.
Trendy and fashionable clothes in very less time with affordable prices.
Weaknes
High competition due to the low market.
Less marketing and advertisements.
Oppurtunities
Zara can explore to the global market.
There was a scope to enter other fields.
More usage of the social media for the online shoppers
Threats
Today market we can see more fashionable products like Zara.
Very less loyal customers.
Due to the imitation products fame of the Zara industry can be reduced
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