Zara SWOT Analysis, Competitors & USP

SWOT analysis of Zara analyses the brand by its strengths, weaknesses, opportunities & threats. In Zara SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like Zara to benchmark its business & performance as compared to the competitors. Zara is one of the leading brands in the lifestyle and retail sector.

The article below lists the Zara SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the Zara SWOT Analysis:

SWOT Analysis of Zara

For Zara, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

Zara Strengths

The strengths of Zara looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of Zara :

1. Zara have more than 2000 stores all over the world

2. Part of one of the most biggest Spanish retailers in the world

3. Zara have a well established brand name worldwide

4. Their supply chain management is extremely low cost as well as most of their processes like operations, manufacturing are all vertically integrated

5. Strong online presence through their own website and other ecommerce platforms makes Zara a popular brand name

6. Clothes are produced at a competitive price with the most innovative and fashionable designs

7. Zara offers extremely trendy, well designed and fast delivery of new products

8. Apart from clothes, Zara also offers handbags, shows etc.

Zara Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the Zara SWOT Analysis:

1. Limited marketing and advertising as compared to some other brands

2. High competition for Zara means limited market share and high brand switching

3. Zara is perceived to be an expensive brand

4. Zara is not very active in the online space though it is available through online channels with partners

Zara Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in Zara SWOT Analysis:

1. There are more global markets which Zara can explore

2. They can also enter into segments and expand those areas where they haven’t

3. Online marketing and ecommerce is gaining importance which can be tapped by Zara

Zara Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of Zara are as mentioned:

1. The high end fashion merchandisers can be a major threat to them

2. Economic downturn can also be a threat to their target segment

3. There is a large amount of consumer switching taking place

4. Fake imitations can decline the sale of Zara products and hurt business

Zara Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 12 competitors of Zara:

1. Chanel

2. Christian Dior

3. Burberry

4. Ralph Lauren

5. Prada

6. Gucci

7. Louis Vuitton

8. Hugo Boss

9. Hermes International

10. Versace

11. Valentino S.P.A

12. H&M

Hence this concludes the Zara SWOT analysis.

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About Zara

Zara Overview
Parent Company	Inditex Group
Category	Apparel and Accessories
Sector	Lifestyle and Retail
Tagline/ Slogan	Zara
USP	Zara offers perfect combination of high end, chic clothing at premium prices
Zara STP
Segmentation	Clothes for people with a combination attitude of work and play
Target Market	People with Medium to high purchasing power who love to look glamorous at all times
Positioning	Zara offers classy high quality clothes based on consumer trends

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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