The Best WritersI’m working on ZARAKey contents of Assignment 1:Based upon the organisation selected, the infographic/PowerPoint slides willinclude:An introduction to the organisation background history, markets etc.An analysis and audit of the organisation’s current market and competitive environment via key tools such as SWOT analysis, PEST analysis and Porters Five Forces.An analysis of the organisation’s current Marketing Mix via the 4/7 Ps.It is suggested that a minimum of five PowerPoint slides will be needed to meet the requirements of part 1 of the assignment. Alternatively, the equivalent amount of content can be submitted as an infographic.ZARABackground. Zara is a Spanish fast fashion clothing and entertainment company.The company was founded in 1975 by Amancio Ortega and Rosala Mera.Ortega established Inditex, a clothes manufacturing firm, in 1963. The success of his foundation led him into the retail industry, where he had a great vision.Ortega and Rosala Mera started a small firm named Zorba 10 years after founding a factory, which he had to rename to ZARA.Zara has more 6,500 shops in 88 countries.PESTLE ANALYSIS OF ZARA[POLITICAL,ECONOMIC,SOCIAL,TECHOLOGICAL,LEGAL&ENVIRONMENTAL]POLITICALEuropean Trade AgreementsZara is a Spanish brand, hence it enjoys all of the advantages that come with expanding operations beyond the European Union. In a political context, one of the important factors associated of establishing a firm in the EU is the country’s broad international treaties.Not only does this make importing raw materials and exporting finished items within the European Union a simple, but this also enables Zara to ship its products all over the world with minimum of effort and at a cheap cost. Overall, Zara benefits greatly from the EU’s free-trade policy.ECONOMICELow Cost of LabourZara is a Spanish brand, as said before. Because Spain is among Europe’s highest unemployment rates, it has a very cheap labour  especially when compared to other Western European countries like France, Germany, and the United Kingdom. Zara makes a massive percentage of their items in Spain, therefore the low cost of production helps them to cut costs and maximize profits. Moreover, the low labour cost in Spain is a huge plus for this company.Relative AffordabilityZara is a well-known brand, so individuals who aren’t familiar with it may wrongly assume its prices are too high. Zara, on the other hand, is recognized as a fairly priced brand in comparison to other European fashion brand names. This allows the company to succeed even in smaller states; for instance, with the slowing economy in Spain, Zara remains one of the highest selling clothing companies. Zara may have some more expensive items, but the most essential point is that the majority of its fashion collection can accommodate to the bulk of consumers.SOCIALFashionable BrandZara is a popular brand with most buyers, considering its price. This is the point at which you can just compliment the company on its efforts. Zara provides a high-quality product at a reasonable price. However, thanks to the brand’s smart marketing, it gives the impression of luxury to consumers. Zara is able to collect massive profit percentages for its stakeholders as a result of its powerful brand image awareness, yet customers still feel like they’ve been getting a good price.Online Shopping TrendOnline buying is definitely a key trend in the twenty-first century. Despite the fact that clothing buying isn’t the best fit for the internet, consumers increasingly want to order their items with the press of a button and from the comfort of their own homes. Zara already has a popular web shop, so this isn’t necessarily a terrible idea. Zara, on the other hand, will have to keep a careful track of the performance of its online store, as consumers’ preferred channels are constantly improving.TECHNOLOGICALUse of Big DataZara is one of several businesses attempting to broaden their reach through technology. The firm already has the money and the audience to get the most out of data as one of the world’s most popular fashion sellers. As a result, Zara is turning to big data , the research of gathering and analysing data , to figure out how to reach and appeal to customers more effectively. This isn’t an easy task because there are both online and in-person consumer interactions. But if Zara can pull off some good data analysis, you can guarantee they’ll be able to take their already profitable company to new heights.LEGALCopyright IssuesZara needs to stay within the law’s limitations. Copyright law is one of the most serious legal areas for any fashion businesses. Zara is certain to run into copyright concerns since it enjoys catching stylish ideas and making them more cheaper. In fact, a large seller has already done so. It’s been accused of copying off Adidas and Balenciaga’s designs and outfit concepts. Zara has typically been able to blend its way out of difficult legal problems like this in the past, but who knows if the massive brand would continue to get such excellent results.ENVIRONMENTALFast Fashion ImpactFast fashion is commonly linked with wastefulness. Many quick fashion items aren’t meant to last; rather, they’re meant to be inexpensive outfits that look excellent in the dressing rooms. Furthermore, fast fashion is supposed to push customers to take on trends rapidly, discarding items in order to keep up with what’s popular. Zara might be classified as a quick fashion brand, and as a result, they could be accused of wasting resources. If the company does not start to take sustainability more seriously, it may suffer a negative impact as customers become more eco-conscious.Sustainability PledgeInditex, Zara’s parent company, has officially issued a sustainable promise to highlight its care for environmental issues. The brand’s “mission” to water, climate change and energy, ecosystems, reusable materials, animal welfare, and other environmental and ethical challenges is detailed on the brand’s website. If Zara can follow these rules, we may be confident that it will succeed even in the face of critical examination.ZARA’S PORTER FIVE FORCES ANALYSISBargaining Power of CustomersThe purchasing power of Zara’s customers is limited: many of them have an average purchase value of less than 100 euros. The clients’ ability to negotiate has increased slightly over the last 10 years, thanks to the introduction of sites that provide an opinion on each brand. It is, however, still extremely restricted.Bargaining Power of SuppliersSuppliers have limited negotiating power. There are a lot of suppliers in the textile sector. Zara is the one that enforces its working conditions on suppliers, despite the fact that it has made terms and conditions to protect human rights. Zara is therefore one of the corporations suspected in 2021 for the labour conditions enforced in China’s province. Despite the criticism, Zara held the same working conditions.Threat of SubstitutesSubstitute products in the leather industry, especially for Zara, include lower-cost clothing companies and the growth of a secondary market for the selling of second-hand items on online social platforms ( Asos Marketplace, Style alert, eBay, etc.)Threat of New EntrantsThe barriers of entry to the mid-range/mainstream fashion industry are rather high. New competitors in the same marketplace provide a serious direct threat. Large multinationals that permeate the whole European market, such as the Irish brand Primark, which provides lower-end items, face a large Unknown Author is licensed underCOMPETITIVE RIVALRYZara is up against strong competitors. However, when it comes to ready-to-wear, a choice has to be made between physical and online sales. Indeed, while physical shop sales may appear to be highly competitive at first look, it should be noted that this is a strength: fabric retailers like to collect together in order to attract a bigger customer. As a result, competition becomes more of a force. Competition is negatively affecting internet sales. Some websites, such as Zalando, include a brand grouping. Zara does not show on the site’s list of brands for sale.MARKETING MIXPRODUCT:Zara is one of the world’s most well-known luxury clothing brands. Zara has clothing for all genders including, kids as well. Jeans, pants, tops, skirts, knitwear, T-shirts, shoes, luggage, and accessories are all available. All of them are part of Zara’s product strategy in her marketing mix. It is a one-stop shop for anybody looking to purchase formal or casual attire. Zara has a variety of styles to pick from. Every year, it introduces at least 10,000 new designs. Zara items are popular among both high-end fashionistas and the general public. The availability of a product line is influenced by the preferences of the target market. Zara also collaborates with local talent to give the most up-to-date fashion trends.PRICE:Zara’s items are both fashionable and affordable. In relation to other worldwide companies, Zara offers the most up-to-date fashion at certain reduced costs in all of its locations across the world. Zara sticks to a low-cost strategy. It is able to do so since it does not spend a lot of money on advertising and raw materials. In comparison to its competitors, it has a low total cost structure. Zara’s pricing vary per country. The labelling of their products is done on a market-by-market basis. Zara develops a market-based pricing strategy that establishes the target price at which customers are ready to pay. The production budget based on the intended pricing. As a result, the profit margin they make on each item is fixed.PLACEZara has a leading position, with over 6500 shops in 88 countries. Zara also has an online store where you may shop. All of this relates to the brand’s marketing mix, location, and distribution strategy. It is a firm that is vertically integrated. Zara’s competitive advantage comes from their supply network. It employs a one-of-a-kind business idea to bring new items and trends to market in the lowest amount of time feasible. Store managers transmit orders to headquarters twice a week, depending on the store’s sales statistics and the preferences of its customers.PROMOTIONZara spends very little money on advertising. It has a reputation for being press-shy. Its owner, too, never conducts press interviews. Zara, unlike its competitors, does not run any spectacular commercials. Zara’s advertising are not broadcast on television because of this. Zara’s unique selling offer is its quick turnaround time, wide range of designs, and low prices. Rather than using expensive marketing techniques, it promotes itself through word of mouth and social media. Zara has a massive social media following. It has 5 million Facebook fans and 49 million Instagram followers.SWOTSTRENGTHZara has over 6,500 stores all over the world.A part of one of the world’s largest Spanish storesZara has a strong brand all over the world.Their shop network is really low-effort for the executives, since a major amount of their operations, such as duties and production, are vertically integrated.Zara is a well-known brand name due to their strong online presence via their own website and other web-based business platforms.Clothes were made at a low cost with the most innovative and fashionable designs.Zara provides incredibly fashionable, well-planned, and timely delivery of new things.WEAKNESSWhen compared to certain other companies, there is limited showcasing and promotion.Zara’s significant challenge includes a little share of the entire market and a lot of brand switching.Absence of advertising While this may allow for some cost-cutting, and cost-cutting is one of Zara’s strong suits, the lack of advertising is a flaw because the brand may double its profit and turnover by publicizing its goods.OPPORTUNITIESThere are more and more global markets that Zara can explore.They may also go into fragments and grow the parts of the body that haven’t grown yet.Zara may tap on the growing influence of online marketing and internet commerce.Zara may take advantage of the web-based purchasing trend by making its clothing available in its own stores as well as on other E-business stores, resulting in a better offer.Sponsorship of certain lead structures One of the most common characteristics of top brands is that they have a few plans that are the store’s leader plans.Market expansion New markets will provide Zara with new and completely profitable business on a regular basis. It must keep an eye on new regions, where the purchasing power of consumers is growing, and where individuals can afford to spend on a semi-premium brand like Zara in order to dress better and more sharply.THREATS:They may face a significant threat from latest design merchandisers.A monetary crisis might also present a threat to their goal percentage.There is a lot of customer exchange going on.False acting skills can affect Zara’s company by lowering survival rate.REFERENCEMedium. 2022. FASHION HISTORY- ZARA. [online] Available at:Anon, Porter’s five forces example zara. Oboolo. Available at:, M.B.A.S., 2022. Zara Porter five forces analysis. MBA Skool. Available at: YOU!!