1. Introduction In the modern society, all the enterprises in the face of increasingly complex social environment, fickle and variable current social situation in economy, politics, culture and other factors bring both opportunities and challenges to enterprises. To develop in intense market competitions, be prepared is the foundation of all the business activities. To walk on the right way by a clear direction to reach a right goal, planning must be an indispensable and significant process of the business operation. Strategy is defined as a plan of action designed to achieve a long-term or overall aim by Oxford Dictionary. A strategy is a series of integrated, coordinated action that designed to help organization develop core competencies and access to competitive advantage. Business model is an abstract representation of some aspects of a firm’s strategy; it helps people to understand how a firm can successfully deliver value to its customers. Unlike strategy, business models do not consider competitive positioning. Business strategic model could help organization to set direction and priorities in less resource and time by a scientific way. In this report, mainly to explore two different strategic models(SWOT analysis, Porter’s value chain) from several aspects including introduction of strategic model, application of models, analysis and comparison about two models. At last, make a short reflective conclusion about the strategic models. 2. SWOT Analysis 2.1 What is SWOT Analysis model Today’s organizations find themselves operating in an environment that is changing faster than ever before, SWOT analysis is a method for organization analyze the implications of these changes and modify the way to react to the changes. SWOT analysis is a method based on internal and external environment of the organization analysis or a procedural or structural components analysis thereof embodied in establishing the main strengths, weaknesses, opportunities and threats. (Verboncu, 2016). As a basis of strategic analysis and formulation, SWOT analysis by analyzing the competitive advantage of the firm itself (Strength), competitive disadvantage (weakness), opportunities and threat, this model helps the enterprise get better know about the opportunities and challenges facing themselves, at the same time, it has vital significance for the development of the public division and formulate the future development strategy. Figure 1. SWOT matrix SWOT matrix (Figure 1) is made for considering four components; important SWOT analysis’s results of the enterprise should be listed in the table. The combination of the four elements defining this model (the model of "fitting" or the model of "alignment") generates, according to experts, four modes of analysis of internal and external factors, as the basis of specific strategies. (Verboncu, 2016) These four factors come into being different strategy combination like SO, ST, WO and WT. (Figure 2) Figure 2. SWOT Matr ...

1. 1. Introduction
In the modern society, all the enterprises in the face of
increasingly complex social environment, fickle and variable
current social situation in economy, politics, culture and other
factors bring both opportunities and challenges to enterprises.
To develop in intense market competitions, be prepared is the
foundation of all the business activities. To walk on the right
way by a clear direction to reach a right goal, planning must be
an indispensable and significant process of the business
operation.
Strategy is defined as a plan of action designed to achieve a
long-term or overall aim by Oxford Dictionary. A strategy is a
series of integrated, coordinated action that designed to help
organization develop core competencies and access to
competitive advantage. Business model is an abstract
representation of some aspects of a firm’s strategy; it helps
people to understand how a firm can successfully deliver value
to its customers. Unlike strategy, business models do not
consider competitive positioning. Business strategic model
could help organization to set direction and priorities in less
resource and time by a scientific way.
In this report, mainly to explore two different strategic
models(SWOT analysis, Porter’s value chain) from several
aspects including introduction of strategic model, application of
models, analysis and comparison about two models. At last,
make a short reflective conclusion about the strategic models.
2. SWOT Analysis
2.1 What is SWOT Analysis model
Today’s organizations find themselves operating in an
environment that is changing faster than ever before, SWOT
analysis is a method for organization analyze the implications
of these changes and modify the way to react to the changes.
SWOT analysis is a method based on internal and external

2. environment of the organization analysis or a procedural or
structural components analysis thereof embodied in establishing
the main strengths, weaknesses, opportunities and threats.
(Verboncu, 2016). As a basis of strategic analysis and
formulation,
SWOT analysis by analyzing the competitive advantage of the
firm itself (Strength), competitive disadvantage (weakness),
opportunities and threat, this model helps the enterprise get
better know about the opportunities and challenges facing
themselves, at the same time, it has vital significance for the
development of the public division and formulate the future
development strategy. Figure 1. SWOT matrix
SWOT matrix (Figure 1) is made for considering four
components; important SWOT analysis’s results of the
enterprise should be listed in the table. The combination of the
four elements defining this model (the model of "fitting" or the
model of "alignment") generates, according to experts, four
modes of analysis of internal and external factors, as the basis
of specific strategies. (Verboncu, 2016) These four factors come
into being different strategy combination like SO, ST, WO and
WT. (Figure 2)
Figure 2. SWOT Matrix
(Source: Helfer, 2010)
2.2 Applicant of SWOT analysis
This part mainly analysis ZARA by SWOT model. Zara is one
of the largest international fashion companies. It belongs to
Inditex, one of the world’s largest distribution groups. (Zara,
n.d.) ZARA brand can be called an alternative brand in the
fashion industry, the fast fashion ZARA created are highly
respected and has became a major mainstream.
ZARA is one of the popular fast fashion brand around the
world, it sells fashion for men, women and kids, welcoming
shoppers in 86 markets with over 1700 strategically-located
stores in main cities. (Inditex Group, n.d.) ZARA uses designers

3. as group instead of individual to quick update products at a
great extent, besides, company keep low inventory in stock
because each new product is supposed to be sold within 10 days.
ZARA constitutes around 80% of Inditex business (8
companies) which means a failure in ZARA can put the whole
group at a risk. (Inditex Group, 2014) Base on the research, the
following is analysis of ZARA by SWOT model.
· Strengths: Good enterprise management status and economic
status; Good development space; The broad consumer groups
(men, women, children); Great brand attractiveness; Powerful
design capability; High speed of product renewal; Parity
strategy;
· Weakness: Supply chain; Similarity to other brand (H&M);
Low product quality; Store coverage.
· Opportunity: Global market; Development of IT technology;
Fashion trends.
· Threats: Fierce competition; Economic crisis, Inditex over
dependence on ZARA.
2.3 Evaluation of SWOT analysis
· Advantages: SWOT analysis is beneficial because it helps
organization decide whether or not an objective is obtainable by
visually show the analysis results. We can clearly see the
results in four parts, it helps organization gather information
maximum. Completing a SWOT analysis brings basic
understanding and direct feels of ZARA, even without accurate
data supported, this model can also draw convincing
conclusions. Based on the SWOT matrix, strategies options like
WO, WT, ST, SO to be selected.
· Disadvantages: Because SWOT is simple to use, the results
defects that are not accurate enough. Where the same point was
recorded under two or more categories (e.g. as both a ‘strength’
and a ‘weakness’), no reconciliation was made to explain the
apparent contradiction. (Hill, 1997) For example, global market
could be both opportunity and threat for ZARA. The distinction
between internal (strengths and weaknesses) and external

4. (threats and opportunities) was not always preserved. (Hill,
1997) It is difficult to divide internal and external influence in
supply chain department, the interdependence relationship
exists between enterprise and the environment.
3. Porter’s Value Chain
3.1 What is Porter’s Value Chain
The Porter’s value chain is an internal analysis method in
business, created by Michael Porter in his book. This value
chain model is to identify key value-generating activities within
the organization, and how resources and core competences add
value and deliver synergistic benefits. Porter’s model consists
of a series of activities which could help a company to achieve
a competitive advantage; the Value Chain emphasizes the
differentiation of core processes and support processes and
organizes a company’s value activities in two classifications –
primary activities and support activities (Kaplinsky.R and
Mirris.M, 2011).
Figure 2. Porter’s value chain
(Source: The Business Owner Journal, 2014)
Porter’s primary activities are consist of five basic processes:
inbound logistics, operations, outbound logistics, marketing and
sales, and services, there are related to company’s production
and service. Support activities in Porter’s Value Chain consist
of primary activities including procurement, technology
development, human resource management and firm
infrastructure, which are not directly involved with the
production of products.
3.2 Applicant of Porter’s value chain
ZARA has built a strong relationship between its designer and
the consumers through the creation of an efficient supply
network that is supported by the Value Chain model.

5. · Inbound Logistics: 60% of ZARA’s materials comes from the
Supply Chain Network which consists of 1592 suppliers located
in third world countries while 40% from the INDITEX Network.
(Fernie. J, Sparks.j, 2009) ZARA’s manufactories are also
established in the developing countries like Turkey, China.
· Operations: As was mentioned in above, a strong relationship
between designers and consumer to bring new fashion quickly,
ZARA use group of designers instead of individual designers.
New fashion designs are shipped at a rapid rate, there are few
basics and reorders are rare. The customer knows that she
should buy an item she likes when she sees it. (Leob, 2015)
· Outbound-logistics: ZARA’s activities include all of the
process from the factory to consumer. ZARA has good supply
chain and ZARA has highly efficient logistics system.
· Marketing and sales: ZARA has no advertising campaign.
What are they marketing skill. The things ZARA did for
marketing are ensure the ZARA store located in the primary
shopping mall.
· Service: ZARA has recycle plan that their new boxes are made
of old boxes for online store. ZARA introduced reliable and
efficient customer services in order to increase consumer
demand by advertising on Facebook, Instagram, Twitter and
Pinterest. ZARA’s designers are therefore intimately connected
to the customers since they employed a specialist team to
receive feedback from them (ZARA, 2014).
· Support activities are closely connected to the primary
activities.
3.3 Evaluation of Porter’s value chain
· Advantages: Most organizations like ZARA engage in
hundreds, even thousands, of activities, these activities can be
classified generally as either primary or support activities.
Porter’s value chain is a good tool for company to understand
their business and determines costs and affects profits. It is a
flexible model that all businesses must undertake in some form.
· Disadvantages: Porter’s value chain is a relative professional

6. analysis model, people who are not experts in its use might not
benefit from this tool.
4. Conclusion
Like ZARA posted on their official website, they believe that
the customer is at the heart of our unique business model, which
includes design, production, distribution and sales through our
extensive retail network. (ZARA, n.d.) ZARA’s core
competencies are related to planning processes and meeting
their customers’ needs. Company analyze business by Porter’s
value chain can meet the requirement of customer and market
better than SWOT analysis. SWOT analysis is an easy model
that everyone can use it to get the basic understanding of
business, the terms used to describe factors were general and
often vague. In the dynamic and turbulent fashion industry,
ZARA in the face of complex challenges and opportunities as
the most valuable brand in the INDITEX and one of the most
popular fashion brand, markets are unsuited to the inherent
rationale of the SWOT approach. The dynamic nature of demand
and the increasing proliferation of segments has resulted in
markets which are characterized by diversity rather than
homogeneity, and instability is the predominant characteristic.
(Hill, T., Westbrook. R, 1997)
To sum up, Porter’s value chain analysis is a better business
strategic model for ZARA.