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PEST Analysis Zara
5
Pest Analysis
2
High tax country: influences business operations (25% corporate income tax)
Due to size: influence on politics (taxes), economic factors: competitors (price pressure)
Conducive Environment:
Stable Politics Democracy - liberal Capitalistic
Due to membership EU – EU trade agreements, smooth cross border operations - free movement of goods, duty free trade
Political Factors
Featured by ZARA
Maria, Manuel, Russel, Kevin
Socio-cultural factors
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4
1
The brand is well aware of the communities they serve, which results in its affordable price range and high demand. The connection that Zara has with its customers favors their business.
Technological Factors
2
In recent years, the popularity of online shopping has been going up. Zara is putting effort into offering a seamless online shopping experience. They are working on maintaining a smooth logistic process to add up to customer satisfaction.
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5
3
Zara targets the communities and age groups in search of trendy accessories and clothing items. They offer fast fashion clothing in an affordable range, which is attractive to many customers.
1
Using technology for customer surveillance (tracking data & buying habits)
2
Innovations -> important for meeting consumer expectations
E-commerce, digital distribution trends impact retail strategies
3
Technological advancements (AI support for designer), newsletters (new products, discounts)
1
Developed market economy: compared to other countries relatively low inflation rate, high purchasing power
Financial market -> efficient – smooth operations
2
3
Overview
High labor costs
3
Economical
Factors
1
Growth rate, unemployment, inflation – impact on zaras financial performance
Political Factors
1
Economical Factors
2
Socio-cultural factors
3
Technogical Factors
4
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