Extensive SWOT Analysis of Zalando – An European E-commerce Company

Products of Zalando

 (Zalando’s Packaging Box Image, Source: RetailDeaill EU)

• Shoe
• Clothing
• Accessories

Competitors of Zalando

• Lamoda
• Zolara
• Myntra
• Boohoo
• ASOS

Now that we understand the company’s core business, let’s delve into the SWOT analysis of Zalando.

SWOT Analysis of Zalando

SWOT analysis of Zalando will determine the company’s strengths, weaknesses, opportunities and threats and hence it is of immense importance for any company to work. It is a tried and true management paradigm that allows companies to compare their business and performance to competitors and the industry as a whole.

Let’s first start by analyzing the strength of Zalando from the SWOT analysis of Zalando.

Strengths of Zalando

• Brand Integration: Zalando integrates with a big brand of a particular country so that it helps the consumer to buy their favourite products from their country’s leading business and also from the world-renowned brands at affordable prices.
• Increase in Revenue: If we analyze the past financial and current financial statements of the company we will see that there is a consistency in revenue growth and it is increasing every year. Despite the competitiveness this industry has.
• Ease of Payment: Zalando also provides its customers with an online mode of payment and also the offline mode of payment so that they can have the ease of purchasing online. 
• Personal Warehousing: Zalando do has its warehouse in the countries where they deliver the goods so it creates a huge advantage to Zalando by providing the fastest delivery to the customers. 
• In House Software R&D Team: Zalando has its source research and developers team which saves a lot of costs for the company.

Weaknesses of Zalando

• No Global Presence: Zoolander is an old company so if we see that the company has been running since 2008 so it’s been 13 years but still the company has not made its presence globally.
• Internal Expenses: Zalando tries different products and plans but whenever the results are not up to the mark they drop the plan and then start working on the new project. This increase the work of R&D and the expenses of the company. 
• Relying on Brand Partners: Zalando relies more on its brand partners which can lead to partners increasing their product cost or taking advantage in some other way.

Opportunities for Zalando

• Increasing Branded Products: If Zalando focuses on bringing more branded products then their sales will increase because customers are brand-oriented and their focus is more on branded products rather than local products.
• Change Business Model: Zalando should focus on its business models like their sales, marketing strategy and their overall general management so that they can focus on their weak points and improve them.
• Use Advanced Technology: Zalando should focus on improving technology so that customers can get a good experience.

Threats to Zalando

• Increase in Customer Retention Cost: Zalando’s business industry is very competitive because of which the customers acquiring cost is very high.
• Management of Business Model: The fashion industry is very dynamic and changing with every new trend or product. Every new product and trend require some different type of sales and marketing techniques. Zalando should change its business model frequently and if they not there will be a huge business failure.

This ends our SWOT analysis of Zalando. Let us conclude our learning below.