Zara Five Forces Analysis

As he pointed out by Michael Porter, classifying these forces or powers in this way allows a better analysis of the environment of the company or industry to it belongs to and, thereby, and based on that analysis, to design strategies to harness the opportunities and deal with threats
Environment1.
Then we show how we have applied the concept of the five forces
Porter to analyze the Inditex business model, focusing specifically its flagship brand Zara.

1. Threat of new entrants:
The threat of new competitors in this sector is relatively low due the prestige and image that is projecting the brand, making it difficult entry and rapid positioning of new brands.
Zara has achieved international expansion, opening stores with little estate costs

3. Bargaining power of buyers
Zara buyers are not in a strong bargaining group as they are final consumers. By not buying large volumes without possibility organize or to request a decrease in selling prices.
Although the product is not Zara offers a premium product need and therefore consumers may be price sensitive, Zara difference because their clothes are "affordable and trendy" so it is very likely that consumers feel that they are paying "fair" to have something original to perhaps in other brands, it could have a much higher price.
The bargaining power of buyers drops even more because the product offer is not standard since the company offers about 15 000 different models
Items of clothing and accessories only considering Zara.
A possible threat at this point may be exposing information virtual platforms bring e-commerce ventures in which Zara. The customer could negotiate because of the information they can access:
Prices of competition with which to compare, information possible decrease in raw material costs, among others.

4. Threat of substitute products
In the case of the fashion industry, we will discuss more replacement

Rivalry among competitors
The Spanish garment industry garment industry forms powerful motivator of the Spanish economy. The industrial structure sector is highly fragmented geographically March.
Placing us in the case of Zara, we believe that the company knew how to handle and well keep your differential advantage based mainly on its model vertical organization and logistics which allow you to supply the market quickly and at very low costs. The company has grown rapidly based in these competitive capabilities, while its main competitors (Benetton, Gap, The Limited) come anquilosándose or suffer from deep problems. Perhaps the only competitor able to match the growth and
Inditex profitability is H & M (Hennes & Mauritz AB) 4.
Part of the strategy they use: drag (pull) the market is immediately provide what the consumer wants instead of doing as the other companies in the same sector which seek to impose across fashion aggressive advertising campaigns.
In the case of Zara mass advertising it is almost unnecessary as they are shops, strategically located, its best communication with the public. They invest heavily in remodeling its stores level
World every 5 years (something the competing brands do