Zara Swot Analysis
Sara’s young “fashion-conscious” staff of Store Managers. The Managers decide which merchandise to order and discontinue, and also transmit customer data and their own sense of inflection points to Sara’s design teams. 2. Sara’s product cycle was much better than its competitors. Ezra was able to originate a design and have finished goods in stores in 4-5 weeks for entirely new designs. The industry model was 6 months for design and 3 months for manufacturing.
Ezra produces 11,000 items a year as compared to 2,000-4,000 by competitors. 3. Sara’s quick product cycle created a sense of scarcity and a “buy now or miss it” mentality among customers. Ezra shoppers visited the chain 17 times a year, compared with an average figure of 3-4 times a year for competing chains and their customers. Weaknesses (3 examples) 1. No way for consumers that aren’t close to brick and mortar stores to buy merchandise without traveling to and visiting the store. . Only have warehouses/ distribution centers in Spain. 3. Inedited is heavily dependent upon Ezra. Ezra generates 76% of Indies’s sales revenue and 85% of the BIT during fiscal year 2001. Ezra also had 86% of Indexes international sales. Opportunities (3 examples) 1. Advertising. Ezra spent Just . 3% of its revenues on media advertising as compared to 3-4% for most specialty retailers. 2. E-commerce or selling more clothes through a website.
Build a warehouse/distribution center in North Africa or another location where land would be less expensive and is also closer to new emerging markets. SST Strategies (2 examples) 1. Have some of the more experienced store managers help train new staff at the franchised stores. 2. Release new “exclusive” lines at the same time as competitors unveil their new products. WET Strategies (1 example) 1. Inedited could try to buy out one of the competitors or a smaller retailer in a market that Ezra does not compete in yet but its competitors do