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11.0introductionZaraisaninternationalclothingbrandandbelongstotheInditexGroupfromSpain,anditalsoachainretailingenterprisewhichisopenover2000storesin56countriesallovertheworld.Zaraisalwayssatisfythedemandfromcustomerswhoindifferentrace,culture,interest,butitalsobecomeainspirationandafflatusfordesignertodesignthenewclothes.Theydeclarethattheycouldusetwoweekstoproduceanewclothesanddeliveryittostoresbuttheaverageinindustryisninemonths!Zarahasmostspecialmarketingstrategythatiszeroadvertising.Furthermore,theyprefertoopenanewstorebyusingpercentageofrevenuesthatisabetterwaytoexpand.Zarahasopenedabout168storesinChinaanditwillbeatrendtoexpandrapidlyinfuture.Asweallknow,Chinaisapotentialcountryintheworld,therearemanybusinessopportunitiestobediscoveredaswellascreated.Zara’scompetitorslikeH&M,Uniqlo,forever21,gapandsoonplantoopenmorenewstoresinChina.(Forbes,2015)Allofthesebrandis“fastfashion”,butweneedthesefashionindeed.Besides,Zarawasopenedtheonlineshoptoincreasedtheprofit.22.0PESTELPESTLEanalysis,whichissometimesreferredasPESTanalysis,isaconceptinmarketingprinciples.Moreover,thisconceptisusedasatoolbycompaniestotracktheenvironmentthey’reoperatinginorareplanningtolaunchanewproject,product,serviceetc.PESTLEisamnemonicwhichinitsexpandedformdenotesPforPolitical,EforEconomic,SforSocial,TforTechnological,LforLegalandEforEnvironmental.(JimM,2011)2.1PoliticalZaraisaoneofthemultinationalretailenterpriseinChinawhichisneedtoconsideredthetradepolicyandcustomsduty.Forexample,theChineseclothesmarketingprofile(profile,2015)introducethatthecustomsdutyofclothesexperiencedadeclinewhentheChinahadjoinedtheWorldTradeOrganizationsince2015,droppingfrom22%-25%to14%-16%.Although,theymustpayattentiontotheinfluenceofpolicyandthenmakeadjustment.BecauseChineseimportspriceabovetheotherscountriesthatcausesalesofvolumedecreasingininlandcity.2.2EconomicChinaisadevelopingcountry,economichasaoutstandingdevelopmentandpositionintheworld.Manymultinationalenterpriseplantotakeaplaceandmakeprofitinhere.ThepurchasingpowerofChinesehasasignificantgrowth.Chinaisoneofthelargestconsumermarketsintheworld.Attheendof2009,Chinahasapopulationof1,334.74million,anetincreaseof6.72millionpeopleovertheendof2008.(InternationalTradeCenter,2012)3ThereisstatisticshowsthemarketvolumeofclothinginChinahadincreasedbythreepercentcomparedtothepreviousyearin2008.InadditiondisposablePersonalIncomeinChinaincreasedto28844CNYin2014from26955.10CNYin2013.DisposablePersonalIncomeinChinaaveraged7420.54CNYfrom1978until2014,reachinganalltimehighof28844CNYin2014.(Chinadisposableincomepercapita)Inthissituation,ZarawillhavemarketpotentiolinChina.2.3SocialZara’sdesignerwillreferthefashionshowofluxuriousbrandtoannouncednewproductasfastastheycould.Chineseattitudetowardfashionhasbeenaobviouslychangedsincemoreandmoreforeignbrandsentrymarket,especiallytheEuropeanandAmericanbrands.Duetotheinfluencewithinternationalfashion,itbecomea“fastfashion”tendency.Everyonewanttoowndifferentstyleornewdressintomorrowwhichisthenewestpopular.Zara’stargetcustomersisfrom20to40ageswhichisabiggrouphasgreatdemandoffashion.Zarahasagreatextenttocatertotheneedoftheircustomers.2.4TechnologicalInditexhasanumberoftextiledesign,manufacturinganddistributionfacilities,allofwhicharelocatedinSpain.(Inditex,facilities)Technologyisanimportantroleinallkindofindustriesthatispromotingtheenterprisesefficiency.Zaraneedtomakesurethattheirtechnologicaliskeepingcreatively.Zara’sproductivityishighwhichisalwaysintimeproduction.Nowadays,Onlineshoppingwillbeanecessaryservicethatisfullof4convenienceandgoodforsalesvolume.InChina,Zaraopenedonlinestorein2012anditscompetitorH&Mopenedin2014.Itisprovedthatthecompetitionarefierce.2.5EnvironmentalZarapurchasesrawmaterialsfromglobalsuchasIndonesia,IndiaandMorocco.Environmentwillbeanelementtoimpacttheproduction.Inthiscase,wemustprotectenvironmenttodecreaseenvironmentalpollutionandglobalwarming,ontheotherhandmustdocomprehensivepredictionaboutclimatechangeandweatherofinfluencetopreventloss.2.6LegalBeforeentryforeigncountries,itneedtoknowledgethelegalabouttradeagreement.InChina,thecompanyneedtopaidsocialinsuranceforeverylaborbuttheystillneedtopaidpartofitthemselves.Whenthecompanyemploytheworkerfromatleasethreemonthstolessthanoneyear,theirqualifyingperiodcannotoveronemonth.Alloftheselawneedtobepayattention.InConsumerRightsDirective,consumershasrighttoberespectedwithsocialcustomsandhabitswhentheypurchasedandused.(TheXinhuaNewsAgency,2013)53.0Porter’sFiveForceshefiveforcesmodelwasdevelopedbyMichaelE.Portertohelpcompaniesassessthenatureofanindustry’scompetitivenessanddevelopcorporatestrategiesaccordingly.(Martin,2014)3.1Intensityofcompetitiverivalry(High)ZaraasamultinationalenterprisethereisnodoubtthatstrongcompetitorsuchasH&MfromSwede,MangofromSpan,UniqlofromJapan.Theoneofthekeyelementisadvertisingstrategy,Zaraisimplementzeroadvertisingandtheybelievedtheoralspreading.However,lowexpenseofadvertisingwouldbeapartofprofit.Inoneside,itwillbeastrengthbecauseitbringamountofloyaltycustomersinthisway.Butitwouldbeathreataswel