Swot Analysis : Business Marketing

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6. SWOT Analysis Strengths Weaknesses • Zero marketing activity • Well established brand name • Quite affordable price comparing to other retailers (May, 2015) • Fashionable, up-to-date products • Responsive and flexible – vertically integrated supply chain • Prime store locations • Quick to react to market trends due to its supply chain design, operation & delivery • Produce in smaller patch which reduce mark downs risks– exclusivity positioning • Only 66 stores in UK – could not benefit economy of scale in UK • Product – low margin, high costs • Contracted out 1 warehouse to cope with demand in 2014 • Less commercial – Zara follows fashion but in season where less commercial trends dominate, sales may drop Opportunities Threats • Online shopping – just introduced in UK in 2010, but competition is fierce with ASOS. The product range offered online not all comparing to in store • Celebrity endorsement – Kate Middleton • Economy and consumer confidence recovered • Mintel reported bargain buy trend – consumers start using price comparison sites to seek appearance of luxury at affordable price such as Zara • Competitions – a lot of competitors, low market share concentration • Competitors are adapting fast fashion approach (H&M, Forever 21…) • After effect of economic downturn – people prefer cheaper products and get used to sales. They start waiting more until sales season • Human right concerns – Bangladesh Fire Incident • Leakages of goods in South East Asia – cheaper
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