The competitive intensity: This is a very competitive market. Many companies are competing fiercely with both international and national companies. Zara's main competitors are H & M, Camaieu, and Mango.
The threat of new entrants: The threat is fairly low because there are high barriers to entry. It is necessary to have a fairly substantial capital in order to ensure the various costs of production and distribution. Survival in this market also requires experience.
The threat of substitutes: This threat is quite strong. Substitute products are sold in supermarkets and clothing by hard discount clothing such as Halle.
The bargaining power of customers: It is low given their number. Purchasing is done periodically and usually in small quantities.
The bargaining power of suppliers: This is low because the company has many suppliers around the world. The company has the ability to change suppliers if there are any problems.
The power of the state: This is relatively low. The only leverage available to the State is in the determining of regulations regarding import, where it may determine of customs duties.
Tags: H & M, Camaieu, competitive intensity, bargaining power, customs duties,
[...] Zara is a global company and must respect the rules of each country. Economic Textile consumption dynamics: in 2007 on five countries that make up 77% of the textile consumption in the EU-27 (source IFM) Increase in the purchasing power of households The Textile industry is highly competitive: More than 170 producing countries Socio-cultur The demand on the textile market is driven by the fashion. al Demand is cyclical and unfaithful. Obligation to adapt the models to the cultural norms of different countries. [...]
[...] Zara's main competitors are H & Camaïeu, and Mango etc. • The threat of new entrants: The threat is fairly low because there are high barriers to entry, particularly, financial barriers. It is necessary to have a fairly substantial capital in order to ensure the ability to meet the various costs of production and distribution. To survive in this market, a company must also have experience. • The threat of substitutes: This threat is strong enough. The substitute products are sold in supermarkets and in the clothing segments of hard discount stores like Halle clothing. [...]
[...] Corrective measures include Hall Clothing, Kiabi . The Stakeholders of Zara are: • Some guidance may be considered for the development of the brand: – Zara could look at a new target. Indeed, the brand mainly targets young customers. However, one study showed a trend towards an aging clientele at shopping centers over 55 years in 2006 to 22% in 2008). Thus, we recommend that the group create a ready-to-wear range designed for mature women, especially since the percentage of seniors tends to be growing with the changing demographics. [...]
[...] change daily. The company produces and delivers The limited number of units produced its clothes in 15 days, allowing it can cause harm to the brand, if it to adapt to the trends and real-time does not have the ability to meet fashion. customer expectations, especially for Of the production is done in a garment that might have been in Europe and 30% in Spain. great demand. Design: 200 stylists. Strategy of mimicry. They follow the trends of fashion designers. [...]
[...] – Finally, Zara should expand into new markets. The strategy of expansion may be structured in the following manner: ▪ Firstly, it could become established in Asian countries, where potential demand is relatively strong. The same group should establish new structures design and production in those territories. In this way, it may move closer to its customers, and maintain its distribution system fee: just in time, especially since in this context, the brand could benefit from lower labor costs. ▪ It would also be wise to create structures on the North American territory. [...]
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