Prepared By:

ARSALAN LATIF (SP16-BBA-010)

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
Factors
Government Spending on R&D
Government/Industry Focus
New Discoveries
Technological Factors
Impact + or - Strategic Move
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.
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%
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 -
Environmental Laws It has negative impact as
government regulation is very
strict in Spain due to EU
standards.
Waste Disposal
It has positive impact as
government has tightened its
restrictions on waste disposal
Strategic Move
Zara has to continuously invest
in new ways to keep their
sourcing, manufacturing,
packaging environment friendly
Zara is already working on this
because of which public
perception of Zara has
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.