ZARA is a Spanish clothing brand and it belongs to INDETEX. Zara opened its first store in the coastal town of A Coruna in the northwest of Spain in 1975. Zara has over 2,000 stores strategically located in leading cities across 88 countries. Zara's designers and customers are inextricably linked. Specialist teams receive constant feedback on the decisions its customersare making at every Zara store. This feedback inspires Zara's creative team which is made up of over 200 professionals. MISSION
The mission of the company is to give customers an exclusive choice of fashion. Zara always innovate its products to enhance shopping experience and provide new designs at affordable costs made from quality materials which follow latest trends. VISSION
Zara is committed to satisfying the desires of our customers. As a result we pledge to continuously innovate our business to improve your experience. We promise to provide new designs made from quality materials that are affordable. MICRO ENVIRONMENT FACTORS
Basicly , we can say that there are five micro environment factors related with ZARA Company.
Suppliers :ZARA’s suppliers are taking place mostly in Spain, %50 of total suppliers, %26 in Europe and %24 in Asia .Basic products are outsourced to low cost suppliers,mainly in Asia and Turkey.
Customers :They have customers from all over the world and they have to meet their expectation .
Employees :They provide respectful work environment and equal opportunity for raises and promotions.
Competitors:ZARA has some important competitors;Uniqlo,GAP and H&M.
Shareholders:INDETEX has more than 60000 shareholders and have responsibility to their shareholders. MACRO ENVIRONMENT FACTORS
We are going to explain macro environment factors with PESTLE analysis.
Political Factors : Worker’s rights and child labour laws are important to consider in order to create a legal and sustainable work environment in manufacturing.Additionally, since the spread of international trade, many manufacturers are now established in developing countries. The cost effect of import and export taxes on the apparel industry directly affects the success of international retailers.
Economical Factors : Economic conditions are another key factor which affects the apparel industry. an economic recession may lead to a decrease of consumer’s disposable incomes which is followed by a decrease in spending on clothes. In addition, an increase in rates of personal savings may have a negative impact on demand in the apparel industry.
Social Enviromental Factors : Most employees in the industry are women, and they are responsible for jobs in weaving, spinning, or hanging fabrics, while men take charge of technical jobs such as machine supervision. The ratio of male to female employment in these industries shows a big difference across countries and regions
Technological Factors : There is wide use of human intelligence instead of computers in the manufacturing process. Digital technologies allow retailers to track and communicate with customers, are used to meet the rapid changes in the apparel industry.On the 21 century,a key component to success in retailing is keeping abreast of new technologies, especially those which could make the retailer’s product outdated.
Legal Factors : Global companies like ZARA can always face with handicaps about legal things.Those companies should know regulation of each country and they should not work with countries which don’t accept international rules in legislation.
Enviromental Issues : Firstly, companies like everyone have to take with environment even if companies have to bear more cost ! ZARA faced with a problem about hazardous chemicals from its clothing and production processes. And they are stil trying to overcome it .
Swot Analysis of Zara
Zara has 74 stores in whole world also Zara is the one of the biggest Spanish retailer in the World.They have...