Question: Zara faces intense competition from other low - cost , high - quality fashion brands, such as H&M , UNIQLO, and Mango. Zara's competitive advantage
Zara faces intense competition from other lowcost highquality fashion brands, such as H&M UNIQLO, and Mango. Zara's competitive advantage is that they provide higher quality products for lower prices, whereas brands like H&Ms fabrics are cheaper. This allows Zara to maintain a wide customer base. According to Porter's Five Forces analysis, what could be a possible conclusion from this information?
Zara faces the threat of substitutes because of copycats like Mango and H&M
Zara has a potential threat of potential entrants as these lowerquality competitors try to compete fairly with Zara by incorporating higher quality products.
Zara needs to focus on the rivalry of industry competitors they already are facing.
Lower quality brands could face pressure from customersconsumers to provide higher quality products, better customer service, andor lower prices, creating a problem for Zara in regard to the bargaining power of buyers.
If suppliers put pressure on companies by raising their prices, lowering their quality, or reducing the availability of their products, Zara could suffer from the bargaining power of suppliers.
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