(Intro to the analysis:

Mr. Amencio Ortega shared his unique viewpoint by calling clothes a perishable commodity,
implying that people always want fresh clothing choices. Soon after this, the phrase: ‘freshly baked
clothes’ was adopted for the clothing range by the brand to signify the changing nature of the
fashion world. Such poor decision making requires extensive external and interval analysis, in the
form of SWAT and Pestel to ensure feasibility and to set objectives and goals.

The mission and vision of a company plays a wider role in telling the world about the long-term and
social practices of a company. Zara is recognized as the most eco-friendly companies in the world, as
it headquarters in Spain produces most of its energy through solar panels and wind turbines. It is
also one of the only few clothing brands that produce clothes that are hundred percent toxin- free.
Zara presents itself as a complete environment friendly company through their mission statements
and business policies:

Another impressive feature of ZARA is that they have always relied on word-of-mouth marketing
from satisfied customers. To present an analysis of the external influencing factors of ZARA I’ll let
you have a look on ZARA’s PESTLE analysis:

The political conditions for ZARA in Spain are quite favorable and allow for a smooth business
transaction. Since the beginning ZARA has always dealt a single currency. Thus, it has been
successfully getting its market share and is unaffected by the recession. Spain has a rich artistic and
designing heritage, thus it has a significant influence over ZARA. Due to the peaceful social
environment and vibrant cultural events tourism has enabled ZARA to attract more customers along
with their various collections and low prices. It has even adopted environmentally sustainable
technological approaches in its sales and manufacturing process by making it stores eco-friendly and
using a mix of labor and automation in its manufacturing by having its assembly done by the
employees. The rules and regulations of the Spanish government support the industrial
development of the country therefore allowing ZARA to flourish. Environmental sustainability has
always been a priority for the company. Therefore, it is looking for new ways to adopt more eco-
friendly business processes.

The SWOT analysis presents the internal influencing factors of the company. The major strengths of
the company are its motivated and committed employees and setting of attainable objectives
through rational and practical decisions, which gives ZARA a competitive edge. The absence of new
marketing approaches and promotional efforts is one of the major weaknesses of ZARA, as it can
lead to a communication gap between the consumers and the company. ZARA still has potential
markets that have previously been untapped by the company. By expanding in new markets and
segmenting their product line into a specialized range, is an excellent opportunity for ZARA. The
company faces a threat due to the oversaturation of the market, because of the different companies
fluctuating exchange rates.