Trends within the environment that may impact on the management of the corporate brand and reputation.

Since 'competition' is a microenvironment force, Zara's fast-paced fashion business must fight with other companies such as H&M and Uniqlo to stand out. Compare with Zara, these rivals are distributed throughout Vietnam, giving them the benefit of convenience by having more outlets covering center locations. As a result, Zara should take action by expanding and developing its presence in the Vietnamese market. Then also strengthens its grasp of its target clients and product quality. According to Mitra Adiperkasa's study, Zara's earnings and sales were higher than H&M's from 2016 to 2018. Even though compared to direct competition, H&M – which launched the market in Vietnam in 2017, has more stores than Zara, but Zara's profit and sales are higher. Zara has successfully penetrated the Vietnamese market, appealing to the psychology of young urban people who enjoy foreign brand fashion goods at costs ranging from 300, 000 to 2 million VND, which may be deemed "affordable" for the urban middle class. Zara's fast fashion business model can never be ecologically sustainable, as producing so many new items every year generates enormous quantities of garbage. In 2020, they received a " Not Good Enough " rating from the Good on You website. Inditex, Zara's parent business, has launched a Closing the Loop repair and reuse initiative. Customers may drop off their worn clothing in-store as part of the initiative. Zara's official website claims that it began in 2020. Zara has created a 100 percent eco-efficient store by reducing our environmental effect using devices that allow the retailer to tailor water and energy use to the store's actual demands. Evaluations and audits of the production process ensure that no dangerous chemicals are released into the environment, resulting in zero waste of chemicals items that do not fulfill environmental criteria. Zara's "green" mission focuses on stores that employ technology to decrease pollution, ensure that renewable energy is used at least 80% of the time in stores, and place gift boxes in every store. They've also committed to solely using cotton, linen, organic polyester, or recycled materials to produce garments until 2025.