ABDUL MOEEZ (SP16-BBA-021) DANISH MAQBOOL (SP16-BBA-011) HASEEB ATHER SIDDIQUI (SP16-BBA-003) Factors & Impact Social Factors Factors Impact + or - Strategic Move Demographic Zara focus also on the its Kids It has a positive impact on collection and Men Collection Zara’s business as median age along with their prime business in Spain is 43 years. of Women’s outfit. Income Distribution A household earns $ 23,999 Zara expanded more of its annually. There is a business in Spain as the considerable gap between the population that is working lies higher class and the bottom between the range of 15 – 62 class but this does not effect years. the Zara’s business as 62% of the population is earning. Factors & Impact Social Factors Factors Impact + or - Strategic Move Social Mobility Zara focused more on the normal priced products and less The upper 20% earns 7 times on their premium high end more than the bottom 20%. products which they used to offer back like Louis Vuitton Attitude to Work Helped Zara in opening more People are hardworking and factories in and near Spain as start to work in a young which the people are not reluctant to is an positive impact on the work with new technologies to Zara’s business cut the cost. Factors & Impact Social Factors Factors Impact + or - Strategic Move Consumerism Consumerism is high in Spain Focused on new products that due to the high competition in return helped in their sales. and EU Standards Level of Education This helped Zara to educate its Level of Education is high in customer with respect to Spain as Education is free from Quality and the price of the 6 – 16 Years. product respectively Lifestyle Trends Zara launched new designs Average people of Spain like to every 3rd week as they know it Shop frequently will be sold Factors & Impact Technological Factors Factors Impact + or - Strategic Move Government Spending on R&D Zara focus on new technologies Government spending is high to minimize waste in order to and increased to 1.35% in last reduce the cost and increase fiscal year the profit by increased sale. Government/Industry Focus It has negative impact as Zara has to spend its own government spending is resources to improve the relatively low in this industry position of industry. with respect to others. Approximately 2.6% New Discoveries Zara has to introduce new As consumerism is strong in designs and technologies to Spain. keep themselves in competition Factors & Impact Technological Factors Factors Impact + or - Strategic Move
Speed of Technology Transfer Zara has to focus on new
It has negative impact as speed sustainable technologies to transfer is high increase their profit
Rate of Obsolescence Zara has to bring new
It has negative impact innovative design every 2-3 as rate of obsolescence in this weeks. industry is high Factors & Impact Environmental Factors Factors Impact + or - Strategic Move Environmental Laws It has negative impact as Zara has to continuously invest government regulation is very in new ways to keep their strict in Spain due to EU sourcing, manufacturing, standards. packaging environment friendly Waste Disposal Zara is already working on this It has positive impact as because of which public government has tightened its perception of Zara has restrictions on waste disposal increased more Factors & Impact Legal Factors Factors Impact + or - Strategic Move Competition Law Zara has to focus on ethical It has positive impact as anti- business practices which trust laws are strong in Spain improves public opinion and sales are increased Employment Law Zara will look after their It has positive impact as Spain employs which is going to has strong employment laws motivate them and they will work with more enthusiasm Product Safety Zara is already working on this as their products are tested for It has positive impact as harmful substances such as product safety laws are strong dyes, chemicals etc. before they in Spain placed on the shelves in stores. This creates a positive public opinion and sales are increased.