Background Information
Zalora is an Asian online fashion company that offers a variety of unique and current fashion clothes for both men and women. The company operates both in Asian nations and also internationally making it a world business. It came into existence in 2012 and operated in Malaysia, Thailand, Taiwan and Singapore among many other nations. The company works in collaboration with the best world designers such as Rizalman and Melinda in coming up with best quality products that meet their customer needs. Its use of the online services has helped the company to build a mutual relationship with its consumers. Zalora provides both local and international brands and products thus able to meet the diversified needs of its consumers (Koetsier n.p). It has one of the best customer services that encourage its customers to come again and again after the first transaction with the company (Lunn and Michael 556).
SWOT Analysis
Strengths
Customer service- The Company has a quality team which assists the company in delivering services that enhance customer service. This makes the shopping very safe and simple to the customers. Its free delivery services also encourage its customers to shop with the company severally thus leading to a lasting relationship with its customers.
Low cost of operations –Zalora Company enjoys lower costs of operation due to its use of online services to provide its products to its customers. All the transactions with its customers are conducted online assisting the company to reduce costs associated with paperwork.
A variety of brands – Zalora Company has a variety of products from best manufacturers such as River Island and Nike just to mention but a few from which its customers can make choices.
Weaknesses
Overdependence on online services- The Company focuses on sale via online services only forgetting that there are other customers who do not have online shopping experience. Consequently, the company loses so many customers who do not believe on online transactions (Koetsier n.p).
Dependence on Asian market- Zalora operations are more centralized in the Asian nations neglecting other world nations that have the potential to become prospective consumers to the nations. This slows down the growth and development of the company due to a limited market.
Opportunities
Offline market- customers who do not have experience on online shopping presents the company with a ready market to explore. The company should consider offering both online and offline services to expand its customer base.
Expansion to other nations – The Company needs to focus on expanding its products and services to other world nations outside the Asian Continent. This is a good move in helping the company to enhance its market share thus promoting an increase in its revenues (Koetsier n.p).
Threats
Competition – clothing and textile industry is very competitive. This is to mean that the company will face much competition from other online and offline clothing companies. Better strategies are vital for the company to service in the market (Shishoo 7).
Cyber Crime – advancement in technology presents the business with cybercrime threats. Under these threats, hackers may steal information from the company thus using it to cause fraud such as stealing customer money. This is a serious issue that the company needs to focus on developing strong measures to overcome the issue in case it arises in its operations.
Pest Analysis
Political Environment
The company operates in a politically stable environment free from corruption. Besides, the Asian nations are focused on enhancing transparency in all their business transactions something that encourages the company to invest more in these nations. Chanda (66) reveals that Asian continent is prone to wars due to the issue of terrorism existing within the continent. However, the nature of the business conducted by the company is not subject to such threats.
Economic environment
Zalora Company operates in economically stable nations whereby consumers can raise enough money to buy the company’s products. However, the harsh economic conditions leading to increased inflation rates may be detrimental to the operations of the company. Besides, its target consumers are Asians implying that the foreign exchange rates are very stable thus providing a conducive environment for the business.
Socio-cultural Environment
Zalora operates in an environment where it has vast information about the social practices of its target consumers. This is to mean that the company can provide products and services that are in line with the provisions of the society. This is one important aspect that has played a great role in enhancing good relationship between the company and its target consumers. Most of the Asian consumers are Muslims and thus the company has proper knowledge and understanding of what the culture likes and what it dislikes thus able to offer products and services which meet the cultural practices of its consumers (Ai 95) .
Technological environment
Technology is ever changing the way of doing business in the modern world. Zalora Company has high committed towards the provision of services to its consumers using the modern technologies. For instance, the company offers its products and services to its consumers online. This indicates that the company is strongly rooted in the use of internet services. In fact, all its services take place on the internet except delivery of the products making its operations have low costs.
Works Cited
Ai, Vo Van. "Human Rights and Asian Values in Vietnam." Contesting National Identities and Cultural Representations in Asia HUMAN RIGHTS AND ASIAN VALUES: 92-110. Web.
Chanda, Nayan. "The External Environment for Southeast Asian Foreign Policy." The Political Economy of Foreign Policy in Southeast Asia (1990): 54-73. Web.
Koetsier, John. “Fashion & beauty startup Zalora scores $100M investment to grow in Southeast Asia.” Venturebeat. 22 May. 2013. Web. http://venturebeat.com/2013/05/22/fashion-beauty-startup-zalora-scores-100m- investment-to-grow-in-south-east-asia/
Lunn, Robert J., and Michael W. Suman. "Experience and Trust in Online Shopping." The Internet in Everyday Life: 549-77. Web.
Shishoo, R. "Introduction: Trends in the Global Textile Industry." The Global Textile and Clothing Industry(2012): 1-7. Web.
