SWOT Analysis of Zara and Benetton Term Paper Example | Topics and Well Written Essays - 250 words

SWOT Analysis of Zara and Benetton - Term Paper Example SWOT Analysis of BenettonStrengthsWorldwide renowned brand.Financially stability.A good relationship with labors and suppliers.High-quality products.WeaknessesThe controversial way of advertising.Expensive products.Limited global markets reach except US. OpportunitiesThreatsOnline retail.Adoption of cost leadership strategy.Stable international market demand.Global Diversification. Saturated clothing market increasing market competition.Economic crisis.Comparing and contrasting the SWOT of Zara and BenettonThe strengths of Zara and Benetton are quite similar i.e. high brand value and high turnover. The weakness of Zara and Benetton are bit different. Zara’s weakness is inadequate promotional activities. On the other hand, Benetton’s weakness is lack of strong presence in emerging markets. Manufacturing and distribution center of Zara is centralized. The opportunity of Zara is to adopt online marketing and decentralize the distribution process. The opportunity of Benetto n is to diversify into the emerging markets and adopt cost leadership strategy. Threats of Zara and Benetton are the similar i.e. threat of new entrants and price war on similar categories among the firms. In case of Zara, the prices of the apparel are lower-middle ranged which is their strength. But in case of Benetton, the prices of apparel are middle-high ranged which can be considered as their weakness.