Zara is one of the largest clothing retailers in the world and this could leave it weak in some areas due to the huge span of control. The company is global but has presence in 77 countries. Zara's greatest advantage lies in its ability to provide the most interesting cutting-edge items, risk free. Normally the more cutting edge the design, the greatest the risk. Clothes do not always last long. Zara has a reputation for new design product development and creativity, but exists the risk that their innovation may falter over time. Costs of doing business with Albanian stores while the Zara is located in La Coruna Spain. Although ZARA has a successful business model it also have some weaknesses which could limit its scalability and ambitious growth.
Inditex over dependence on ZARA
ZARA constitutes around 80% of Inditex business (8 companies) which means a failure in ZARA can put the whole group at a risk.