Business Communication Zara's Business Model

  • A Spanish clothing and accessories retailer based in Arteixo, Galacia.
  • It was founded in 1975 by Amancio Ortega and Rosalia Mera.
  • The World's largest apparel retailer.
  • Zara as of 2017 manages up to 20 clothing collections a year
  • Owned by indetex.
  • It was ranked 30 on inter-brand's list of best global brands.
Marketing Strategies
  • Direct Sales.
  • Controls most of the stages.
  • High ended products at low price.
  • Use of good fabric.
  • Shorter Fashion Cycles.
  • Spends about 0.3% of their revenue on promotion.
  • Remarkable Logistics.
SWOT Analysis
  • Cost leadership strategy
  • Efficient distribution
  • Fast delivery of new products and trends in the market.
  • Centralized distribution system.
  • Zara has one manufacturing and distribution center in world.
  • Global market penetration
  • Online market
  • Distribution center in U.S.
  • Local competitors
  • Global competitors
  • Gap, H&M and Benetton are it's closest comparable international competitors.
  • Customer is at the heart of an unique business model which includes design, production, distribution, and sales through an extensive retail network.
  • Zara and H&M are more fashionable with lower price.
Submitted By:
  1. Akash Goyal
  2. Manik Bhatia
  3. Garvita Gupta
  4. Sarthak Agarwal
  5. Tiirth Jhamb
Created By
tiirth jhamb

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