Porter’s Five Forces – Zara

Rivalry:
As of today, there are not many fast fashion shops like Zara around . This uniqueness allows Zara to profit from the public without having to spending large sums on advertisement in order to gain market share.

Threat of New Entry:
Uniqueness and profitability attracts potential individuals with investment to enter the market. Though still, it would be pretty difficult to gather all the workforce needed in a short period of time. It might be more easier to entry if individuals wanting to enter this market had sufficient time to prepare themselves.

Supplier Power:
Zara, or any other fashion stores, would have low supplier power due to the reason that their goal is to attract every potential consumer to buy their merchandises.

Threat of Substitute:
The fashion industry is very unpredictable with many competitors all wanting to project the next big trend. Though Zara still distinct from others by the constant innovative and creative designs of most up-to-date fashion.

Buyer Power:
It lies in the hands of consumers of what they like and purchase, regardless of the brand. Though there are still some individuals who have “loyalty” towards Zara and does not mind the long line ups.

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