The Comments On The PEST Analysis Of Wha Zara

Reflecting on the comments about the PEST analysis content I acknowledge the fact that it was ‘’fairly speculative’’ (Irene, 2015). The points for Economic, sociocultural and technological factors needed more depth which Irene said I totally agree, I should’ve talked about each factor in-depth and how it influences Zara. For instance, an economic factor such as interest rate I could’ve discussed how the changes in interest rate will influence Zara and its customer. If interest rates stay low it will affect savers and borrowers. Low interest rate will encourage more people to borrow and spend, which means an increase in demand which is good for Zara and the economy because Zara will have more customers spending in stores and online. Zara will have higher revenue due to customers spending more. However, this could increase prices and inflation rate.

If inflation rate is high the base rate might increase and more people will decide to save money than spend which could decrease demand and retailers decide not to increase prices so inflation rate slowly goes. My view of

However, Zara are usually compared to premium brands for instance Armani, Hugo Boss and others because of this Zara have some stores which are premium and others which are affordable. Zara mostly have a premium pricing strategy the pricing is made by optimising development and training costs (Hitesh Bhasin, Marketing mix of Zara) looking at pricing as portion strategy Zara are looking into high quality and high price. Zara pricing approach in my opinion is value-based for example a detail in a product and the quality of the product will mean the cost will be higher for instance a well designed detailed leather jacket will cost more compared to a basic design leather jacket because the difference of producing the detailed jacket which takes time to designing and material being used compared to the basic quick to make