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A Strategic ZARA Case Study Answering All the Questions

Zara is one of the top fashion apparel chains with a revenue generation of $18.9 billion annually. It is considered as the ideal company for every textile students. While pursuing a master or PhD in fashion, students often get case study writing to enhance their knowledge of the corporate world. If you are also willing to write a case study on this great apparel company, then you should seek Zara case study help from Instant Assignment Help Australia.

In the Zara case study writing, the professor will ask you to prepare SWOT and PESTLE analysis. However, these analyses required you to conduct in-depth research which is not as easy as it looks. You need to have all the resources to attain the required information that can help you include the best research work in your case study. To determine this aspect, professional writers of Instant Assignment Help Australia would help you with their years of experience and knowledge.

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What Makes Zara Case Study Writing Look Perfect?

As per the case study writes, you should tell the story of the company from the very beginning. This will help your readers know about the various aspects that you will be going to cover in your whole case study writing. Apart from the storytelling, you also need to understand the importance of structure in the case study writing. A good structure provides a proper sequence that binds readers’ attention throughout the content. After this, you have to look after using only one font and real numbers related to the company. When you do this, you will see effective results in your case study writing for sure. It will help you in making your Zara case study writing look perfect.

After knowing how to make your case study perfect, it is also important to get insight into what are all aspects that you need to include in your case study writing.

What Are All the Areas Which Need to Be Covered in the Zara Case Study Writing?

According to case study writers, students need to include the following areas:

Situational Analysis

During case study writing, students need to analyze both internal and external factors related to the growth of the company. Without conducting a situational analysis, no case study can be considered as completed. It is because this analysis includes business capabilities, environment, and customers' potential of buying any product with ease. Apart from this, students also get information related to:

  • Product situation
  • Competitive situation
  • Distribution situation

While this information might be obvious to every student, but they then forget to analyze these situations.

Environmental Analysis

While seeking Zara case study help, students always ask our writers to include environmental analysis, because in this particular section, the company’s external factors are evaluated. These factors are considered as the PESTLE analysis. According to our professional writers, it examines all the available pros and cons present in the existing market.

In Need for Zara SWOT & PESTLE Analysis Solution? Allow Our Experts to Help

Before we begin scrutinising every little thing that has happened to the brand called Zara. It is important to look at the company itself and get to know it a little bit more. For the purpose of this case study, our experts have opted for SWOT analysis and PESTLE analysis of Zara. Every dimension was considered in order to produce a document that gives all the information in a precise and condensed format. To begin with, here is a table with some common facts about Zara:

common facts about Zara

That is not it. We have gathered some lesser-known facts about the company that might interest you. Take a look:

  • Do you have any idea how many minutes it takes to sew one women’s shirt at Zara? The answer is only 38 Zara really pulls up to the word fast in fast fashion.
  • The founder of Zara, Amanico Ortega, is the 2nd richest man in the world and the richest in Europe.
  • Zara finds inspiration literally everywhere and everywhere. It has the record for getting clothes designed and distributed within 1–2 weeks. Now that is what you call lightning-fast delivery.

Pestle Analysis of Zara: Exploring Fast Fashion Giant

PESTLE analysis is one of the most well-known marketing principles for conducting a comprehensive analysis of any company or business. This tool is used by many companies to evaluate the market in which they are operating. Similarly, our experts did a Pestle analysis of Zara to know about the position of the product in the market. This in-depth research helps in writing the perfect situation that compliments the content of the Zara branding case study.

PESTLE is an acronym that stands for various factors that affect the working of a company, namely;

  • P- Political Factors
  • E- Economical Factors
  • S- Social Factors
  • T- Technological Factors
  • L- Legal Factors
  • E- Environmental Factors

All of them combined can either improve the basic functioning and market value of the company or lead it towards doom. Here is a complete pestle analysis for Zara to understand the future of this fast-fashion giant.

Zara Peslte analysis

POLITICAL FACTORS

Political factors include trade agreements, bureaucracy, corruption level, and details of tariffs regarding the guidelines of the government. In this section, our writers have mentioned every aspect related to the political factors affecting the operation of Zara. Take a look.

1. European Trade Concords

Zara is a Spanish brand and that helps it manifolds business-wise. European Union has very complex trade agreements and tariff structures, making it hard to do business globally. But Zara doesn’t have to go through all of it because of its European birth. Zara can also ship its products worldwide with little to no effort. European Union's free trade policies are a blessing for Zara and its future growth.

2. Import Export Ease in Europe

Zara doesn’t have to pay a safe amount of tax to the European trade unions while importing or exporting any goods. This saves a lot of money for the brand and makes importing raw materials for production and exporting the finished goods within Europe very easy.

3. Government Intervention & Financial Regulations

For a multinational brand like Zara, working globally is necessary and profitable, but with it comes the burden of staying in line with the regulations of the host country. Defaulting on these rules could cost millions to the company. For example, trade rules for countries such as China and India are very strict, and if a brand violates any of those rules, it may be blacklisted.

ECONOMICAL FACTORS

In this section, our professional writers include all the economic factors that affect business operations the most. It involves the growth rates of developed and developing countries. When students seek Zara case study help, they get all this done with the required effectiveness and efficiency.

1. Lower Labor Costs

Zara has the most benefit from being a Spanish brand, because Spain has the highest unemployment rate, at least in comparison to all the other European countries. This means it has a relatively low cost of labour. Therefore, it never outsources the production work to any Asian or African countries. Zara has been creating employment opportunities in Spain.

2. Brexit

Zara has been exporting to Britain heavily, a major chunk of its revenue is generated from sales in Britain. That is precisely why the Brexit deal came as a shock to the company. There has been a significant drop in the sales of fashion apparel in Britain due to the restrictions on free trade from Europe.

3. Parallel Affordability

Zara is not that inexpensive of a brand when it comes to pricing. But what works in favour of the company is the fact that it is relatively cheaper than other high-street fashion brands in the market. This makes the fashion apparel of Zara very lucrative in the eyes of customers. Zara has a mix of expensive and affordable collections, but it keeps in mind that it caters to the needs of the majority of the population making it everyone's favourite

4. COVID-19 Pandemic

When the world got hit by this giant curve ball, everyone suffered. Every market and business was under the rug for so long. Zara, too, had to close its over 2000 outlets worldwide. This cost them a fortune, but the digitisation of the brand saved it and minimised the damage.

5. Raw Material Price Hike

The biggest selling point of the company is that it is fashionable yet affordable, and when that is about to change, it might take the brand down with it. The increasing prices of certain raw materials like cotton, silicon, etc. are going to be a big issue for Zara if it wants to maintain its customer base.

SOCIAL FACTORS

After stating economic factors, here comes the social factors, in which students need to include all the aspects of the day-to-day life of a business. According to Zara case study experts, it is directly related to cultural diversity and the changing tastes and preferences of customers regarding any product. Here is the list of some such factors that have a grip over the functioning of Zara.

1. Always Fashionable

Zara is a fast fashion brand that has gained popularity due to its speedy process of bringing the designs from runways to the customers within record time. And while doing all of that, it ensures it delivers the best to its customers. Its clothing is always fashionable and trendy.

2. Cultural Social Trends

Customers always buy products that are pleasing to them, and culture plays a very big role in that. Zara does pretty well in this department by assimilating different elements from various cultures in its products, be it clothes, footwear, etc. This makes the brand more accessible and lucrative for the target audience.

3. Diversity in Products

Zara is an established brand, but that also means that it has been in business for a long time and its methods are a little old. With time, the fashion industry has changed a lot. For instance, the strategy of general product range has become a little old. Today, customers need a range of products in each category. And Zara needs to up its game in this department.

4. Different Sizing of Cloths

One thing that has most customers confused is the sizing issue in the clothing industry. There have been several occasions where clients have returned the products due to the same. But not with Zara. The company has curated a holistic range of products keeping in mind facts like; geography, race, location, etc. This gives Zara a better understanding of society and a strong bond is created.

5. Seasonal Discounts

Offering various discounts and coupons on international holidays and festivals is what every brand does. But being more considerate and launching seasonal and country-specific offers for targeted countries has given Zara an upper hand. It also promotes the brand on various promotional websites through e-vouchers, coupons, etc. that can be redeemed through online stores.

TECHNOLOGICAL FACTORS

As per Zara case study writers, while doing PESTLE analysis, it is important to write about the factors related to technology that affect the business operations. It includes sales assumptions, business automation, and research and development of the business industry. All of these are analysed through modern technology. It ensures exact numbers that can be later used to compare the goals with the real position in the market.

1. Big on Data Analysis

Zara aims to provide its customers with premium, world-class products. To achieve that, it collects data from various sources and analyses it. This helps it to figure out what the customers are looking for. Zara has been doing it on a small scale, but now it is expanding the horizons by attempting what has never been done before. Analysing huge data sets. If this becomes successful, Zara could literally rule the market.

2. E-commerce Boon

With the prevailing pandemic and its accompanying restrictions, the market has been a little on the low end. Businesses have been suffering a lot. But Zara adopted it all pretty quickly and invested in e-commerce and online retail technologies to be accessible to its customers. This helped the company cut its losses.

3. Partnering with Tech Companies

Zara has a very big and elaborate business and a large variety of products that it manufactures. With both online and offline stores, it is quite hard to manage everything manually. For this purpose, it has partnered with many tech companies to sort out its inventory. Also, this will help in enhancing the features of its apps and other website features.

LEGAL FACTORS

When students seek Zara case study help, our writers make it a point to include all information that is related to the legal world. Professors usually, check this particular section, because it is often seen that students forget to mention this part in their case study writing. This usually leads them to get bad grades and negative feedback as well. But not anymore. Here are the legal factors that are affecting or might affect Zara in the future.

1. Laws Relating to Copyrights

Fashion is a very volatile industry when it comes to copyright infringements because intellectual property is involved. There have been several instances when Zara was blamed by other brands for blatantly and unlawfully stealing their designs. Similarly, many of Zara’s designs have been taken away too. The central theme is that Zara needs to get strict about not stealing designs from other sources. Thus, implement copyright laws correctly.

2. Labour Law Issues

Zara employees several people and on paper the working conditions are deemed to be great. But in reality, there have been many reporting of poor labour laws and working conditions of the employees. The company needs to deliver on the promises that it has made.

ENVIRONMENTAL FACTORS

Finally, our Zara case study writersensure they mention environmental factors, which certainly provide their content with the required basis and strength. Environmental factors are closely related to weather, sustainable business strategies, etc. Doing a little research on this section can help students secure sky-high grades as well. So here is a well-researched and perfectly drafted analysis of the environmental factors affecting Zara.

1. Impact of Fast Fashion

The branis very popular and has been ruling over the hearts of people, but that is at the expanse of some crucial things. The affordability of Zara clothing comes at the cost of wastefulness. The clothes are worn for a very short time, and before they get completely utilised, new designs are in trend. This is creating heaps of waste that has nowhere to be disposed of. And with the new trend of being eco-friendly, more and more customers will start drifting away from the company.

2. Move Towards Sustainability

With so many allegations of not being concerned by the ecological impacts of Zara’s existence. The parent company, Inditex, has launched a sustainability pledge. The website shows in-depth concerns of the company regarding issues like the water crisis, climate change and energy, biodiversity, sustainable raw materials, animal welfare, etc. If Zara manages to follow through on these points, it will be golden for the coming decades.

Finally, concluding the SWOT Analysis and PESTLE Analysis of Zara it is safe to say that the brand has maintained a pretty good image so far, with some minor issues here and there Zara is cruising its way towards success. The brand has maintained a balance between delivering economically priced products to the customers yet maintaining a steady flow of revenue for itself and the investors. But it seriously needs to think into the matter of copyrights and take environmental concerns more seriously.

Internal Analysis

Most of the students who pursue a master’s degree in fashion and textile often get case study writing in between their semesters. In case study writing, they need to analyze certain aspects, and internal analysis is one of them. In this type of analysis, they need to include a strategy, known as SWOT analysis. It ensures the strategic implications of business to achieve desired results in no time.

An In-depth SWOT Analysis of ZARA

First things first, what is a SWOT Analysis? It is a method used by various business entities to perform a complete analysis of a company's assets. It can be used to assess the initiatives of a business and its employees to the greatest level. It also facilitates business decisions and helps managers in making effective business policies as well. It consists of four crucial elements, namely:

  • Strength
  • Weakness
  • Opportunity
  • Threat

All these factors combined give a holistic growth report of the company, making it easier to make business decisions and policies (both internal and external).

In this section, we will focus on an exhaustive SWOT Analysis of Zara. And that is precisely what will make this Zara branding case study different from any other. So let us begin.

Zara SWOT Analysis

STRENGTH

1. Fashionable and Stylish Clothes

Zara is the master of what we call fast fashion. It has its eyes set on the target consumers. Thus, it tracks down their requirements and likes to incorporate it into the latest designs. For this very purpose, there is a team of skilled and qualified designers working day in and day out. Zara produces unique and trendy outfits for every age group, and that too, in superior quality.

2. Global Brand

Zara has made a name for itself in the global market. Its outreach has been increasing exponentially over the years. What began with just a retail store in Spain is today operating at a capacity of 2,200 stores in 96 countries. It has become the go-to brand for the global population. Yes! Even Kate Middleton loves it.

3. Supply Chain Management

The supply chain management of Zara is very intrinsic and extremely controlled. Every step of the supply chain process is under self-containment. The raw material is acquired from nearby producers, and the very design is produced internally. After that, it goes for manufacturing in the nearby units. The prepackaging takes place in complete security and the final product is shipped overnight to the European retail outlets. For the international outlets, Zara uses airlift.

4. Affordable Prices

The most remarkable and appreciated feature of this brand is that it is affordable. Unlike many other clothing brands that have insanely high prices for their clothes. Zara provides superior quality products in a decent price range, making it the world's favourite.

5. Strategic Locations of Stores

Zara has a strong hand in the department of marketing. It does not spend heftily on promoting itself, instead focuses on acquiring the new stores and outlets near high-end boutiques of premium luxury fashion brands. All its stores are spacious and well designed to give customers a pleasing shopping experience.

WEAKNESS

1. Inadequate Supply Chain

Zara has over 2000 stores worldwide, which necessitates precision in demand and supply chain management. On top of that, the supply chain management of Zara is majorly dependent on its main production facilities situated in Spain. In order to avoid any delays in delivery and customer dissatisfaction. A self-contained distribution system can be the root cause of many of Zara’s unpredictable problems. Zara needs to work on improving its regional production management.

2. Limited Advertising

This is said to be one of the most controversial yet successful policy measures adopted by a brand. Even though it has been working out just right for Zara, it would not in the least way hurt to invest in the advertisements. Some real brand promotions could bring about a major boost in the revenue of the company.

3. Insufficient Product Information

For the longest time, customers have been complaining about the little to no product information displayed on the official website of Zara. This has been the cause of numerous returns and several complaints. Clients get confused about the sizing of different products because of the lack of details on the web page. Zara should really work towards bettering this situation or else it will lose valuable customers.

4. Fast Fashion Imitator, Not Creator

Zara has been popular for its pioneering moment in the fashion industry, where it introduced the concept of fast fashion clothing to the world. But ever since that, it has been under the radar for copying and sourcing out designs from runways and not originally creating them. It has designers in place to create runway designs into affordable high-end designs. Zara is not a producer of a fashion trend but rather an imitator.

OPPORTUNITY

1. Growing Global Market

Zara already has a great global presence and market exposure. It has a strong foothold on the major four continents but has yet to fully realise the potential of the African and Asian continents. If Zara succeeds in tapping into these markets, its growth could multiply many folds.

2. Online Shopping Platform

Everyone is buying stuff online after the global pandemic and the new paradigm shift towards online shopping. And this is a great opportunity for Zara to do better in this department. It needs to mend its relationship with clients by providing more product information on its websites. Great things could be achieved by improving the e-commerce strategy.

3. Creating Distinct Design

Any luxury brand you talk about always has a unique feature or a USP attached to it. For example, the Vera Wong wedding dresses, Lacoste polo shirts, Prada handbags, etc. One common thing among them is their trademark design, which helped them build a name and place in the hearts of the customers. Zara has an opportunity to do exactly the same for itself.

THREATS

1. Fierce Fast Fashion Competitions

Zara receives tough competition not only locally but also globally. Some of its competitors are H&M, Massimo Dutti, Stradivarius, GAP, etc. This is a serious threat to Zara’s business, and if it wants to stay relevant and in the game, it needs to buckle up and fight back.

2. Rapid Imitation

There is this ongoing issue with every latest Zara collection there arrives an imitated version of the same in local markets. These cheap copies have the brand logo and name of Zara, making a fool out of innocent customers.

3. No International Collaborations

Zara has been cooped up in itself, meaning there have never been any collaborations with international designers of fashion houses like Karl Lagerfeld, Alexander Wang, Donatella Versace, etc. This is a threat to the further growth of the brand. When such collaborations take place, the client base gets excited about the brand, which in turn skyrockets sales.

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Why Should You Seek Zara Case Study Help from Instant Assignment Help Australia?

We know that most of the students look for case study help to get the best grades in their writing. According to professionals’ advice, students should always seek writing services from Instant Assignment Help Australia. It is because the team that we have is highly trained to provide the best quality data. We always look forward to ensuring quality over any other aspect in every sought document from us.
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