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Swot Of Zara Essay

694 words - 3 pages

|Strength |Weaknesses |
|Top class in the fast fashion retailing |Centralized distribution system |
|Low level of inventory |Higher cost of manufacturing |
|Fast delivery of new product, design and trends |Old information system |
|Opportunities |Threats |
|Online market ...view middle of the document...

2008 |1723.7 |
|INDITEX (ZARA) |Spain |Jan. 2008 |1517.5 |
|H&M |Sweden |Nov. 2007 |1342.1 |
|Limited Brands |USA |Jan. 2008 |1108.2 |
|NEXT |UK |Jan. 2008 |666.2 |
|FAST RETAILING (UNIQLO) |Japan |Aug. 2008 |586.5 |
|Polo Ralph Lauren |USA |Mar. 2008 |533.6 |
|Liz Claiborne |USA |Dec. 2007 |500.5 |
|Esprit |Hong Kong |Jun. 2007 |415.0 |
|Abercrombie & Fitch |America |Jan. 2008 |410.0 |
|Benetton |Italy |Nov. 2007 |335.4 |

• Source: Compiled from the annual reports of the companies listed above.
* Figures calculated in yen using August 31, 2008 foreign exchange rates.
Weaknesses:
First, Zara is continued growth; there is some concern in regards to Zara's centralized logistics model. The company is concerned with diseconomies of scale as it grows. To address this issue and increase capacity, Zara should build a second distribution center.

Second, manufacturing in Europe is lack of flexibility in shifting plant location. Eighty percent of Zara’s...

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