Swot Zara Essay

617 Words3 Pages
SWOT Analysis of ZARA Strengths | Weaknesses | 1. Since ZARA is a big customer, Zara has the bargaining power over the POS terminal vender. 2. The current application is much stable. 3. ZARA was a result of forward integration in 1975. 4. ZARA became subsidiary of Inditex. 5. Decentralize decision making. 6. Location that they place the ZARA stores. 7. Changing store layout. 8. Enormous number of stores. 9. High net income over revenue. 10. Strong distribution channels. 11. Strong production line. 12. Vertically integrated manufacturing process. | 1. Obsolete Point of Sales (POS) system. 2. Stores are not configured to handle small stocks. 3. No proper quick automated mechanism to determine the replenishment quantities. 4. Unavailability of a system that gives information at any time about newly available garments. 5. No proper automated tracking mechanism to identify the customer buying patterns. 6. Expectation about the uncertainty of the order but not sure until it delivered. 7. There is no strategic approach for IT at all. 8. Just using the internet to send sensitive data. 9. No interconnected POS terminals, lead to security holes, inaccuracy and less efficient. 10. Within a store POS and PDAs cannot share information or data. 11. No store to store communication except through telephone. | Opportunities | Threats | 1. Target market is fashion conscious city dwellers. 2. Fast changing tastes of in clothing styles. 3. Commercials travel and identify the fast changing buying patterns of the customers. 4. Ample room within the existing markets. | 1. Software vender could update the pos terminal, so that they are not DOS compatible any more. 2. Hard to predict the clothing styles and hard to influence. 3. No virtual advertising. 4. ZARAs’ cut fabric wan sewn in small workshops which is not
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