Zara Business Assessment

1633 Words7 Pages
Business Report Zara 2013 By .............. Zara Business Report 18.10.13 Business Report Zara 2013 By .............. Zara Business Report 18.10.13 From : Independent Management Consultant ....... To : ......................... Subject : Zara Business Report Date : 10/19/2013 Contents 1. Introduction 4 2. Overview of Zara 4 3. PESTEL Analysis 4 3.a. Political 4 3.b. Economic 5 3.c. Social/Cultural 6 3.d. Technological 6 3.e. Environmental/Ethical 6 3.f. Legal 7 4. Conclusions & Recommendations 7 References 9 Appendixes 10 1. Introduction The aim of this paper is to analyse external environment in which Zara is operating. The first part of this paper provides brief overview of Zara as a company and their operations. The second section aims to assess external environment from political, economic, social, technological, environmental and legal aspects. And lastly, conclusions are drawn and recommendation is provided. 2. Overview of Zara Zara is the flagship chain store of Spanish company Inditex Group which incorporates other brands such as Zara Home, Massimo Dutti, Pull and Bear, Oysho, Uterqüe, Stradivarius and Bershka. Zara is present in 86 countries with a network of 1.751 stores on the premium locations in the world's largest cities (Inditex website). There are three key pillars Zara is running its business on. First of all, time between new collections deliveries is very small. Stores are supplied every two weeks with new fashionable garments and in small batches in order to achieve an effect of scarcity, which is a second key element of the Zara business model. The third one is delivering many different styles in all forms and shapes so that there are more chances customers will like the clothes (Inditex website). 3. PESTEL Analysis 3.a. Political Political factors
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