Swot Analysis : Business Marketing

1758 Words May 10th, 2015 8 Pages
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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