Zara profileZara is a fashion brand founded in 1975 by the Spanish Inditex group owned by Amancio Ortega. The brand is supported by other sister companies such as Bershka, Massimo Dutti, Pull and Bear, Stradivarius, Oysho, Zara Home, Zarakinds and Uterque. Zara has made huge profits over the past two decades and is now ranked as the third largest retailer globally (Zhang, 2008). Unlike its competitors, Zara produces more than half of its products in Europe and not in Asia or South America as most companies do nowadays (Bruce and Daly, 2006). Zara's average markdown ratio is set at around 50% according to Sull and Turconi (2008) and unlike similar brands, Zara only sold 15% of its products on sale. All these factors have allowed Zara to expand sales and profits by more than 20% per year. Zara is given credit for its Agile Supply Chain and most market researchers attribute its success thus far to its success with its efficient Agile Supply Chain (Dutta, 2002; Tiplady, 2006; Sull and Turconi, 2008; Zhang , 2008). Zara's success can be summed up in four factors. 1- Own a professional team of designers. 2- Operate 9 clothing factories alone, so that new clothing can be completed from planning, design to production within one week. 3- Thirdly, Zara has fast delivery.4- Zara adopts "limited collection and new design" strategy. This means that every three weeks all clothing products should be updated and sorted. (Zara 2010.)Zara designers have unique creativity with trend and enthusiasm towards young people. They often visit New York, London, Paris, Milan and Tokyo, to get ideas about the latest women's fashion and trends in order... middle of the paper... find group- Expand assortmentThreats- Many competitors- No advertising campaign- Potential oversaturation - Production base in Spain could become expensive - Competitive market despite lower prices - Consumer distrust due to lower prices - Changing consumer preferences - Competitors or low-cost imports Comparison between H&M and ZARA The differences between H&M and Zara were shown in this chapter. They have something in common that is easy to relate to. Both are a successful clothing company and enjoy huge popularity in the same industry. However, they have different business strategies to carry out their activities. Benchmarking in this case has the aim of evaluating H&M's strategic management and learning some experiences to better improve its strategy and performance.