PEST, SWOT, Five Forces Assignment Answers

Question:

Evaluate whether using one of PEST, SWOT or Five Forces Analysis theory is more effective in ZARA?

PEST, SWOT, Five Forces Answer and Explanation

- Provides a broad overview of the external macro-environmental factors affecting a business.

- Helps in identifying key drivers of change.

- PEST analysis can be useful for ZARA to understand the external factors influencing the fashion retail industry, such as changes in fashion trends, economic conditions, and technological advancements.

2. SWOT Analysis:

- Subjective nature can lead to biases in identifying strengths and weaknesses.

- Lack of prioritization of factors.

- Focuses on industry-specific forces that shape competition.

- Helps in understanding the attractiveness of an industry.

- Porter's Five Forces can be useful for ZARA to analyze the fashion retail industry's competitive forces, including the bargaining power of suppliers, buyers, and the threat of new entrants.

Conclusion: