Comparing The Entrepreneurial Journeys Of Zara And Ikea

II. Over the past few years, fast fashion has been an extremely hot segment and source to help some clothing companies increasing on their economic growth.

According to Inditex, the Group 's business model is characterized by a highly integrated vertical structure. In contrast to the model that has been adopted by competing international corporations, the Group handles all the processes required in the apparel industry—design, production, logistics, distribution to retail outlets—on its own. This model is based on a desire for structural flexibility and a belief that the customer should come first in every aspect of the company 's operations.

Fast fashion is a force that needs constant change from retailers; new garments and new trends cycle out as fast as a bi-weekly basis, putting pressure on the industry to sell fast and cheap to the consumer. However, with the news publishing more articles about the working conditions in factories, comparable to the Rana Plaza disaster in Bangladesh, and the run-off pollution these factories produce, the consumer is demanding more transparency in the supply chain. The introduction to slow fashion came from this demand of wanting a better understanding of the garments we wear, similar to the slow food movement that surfaced from the fast food industry. The slow food movement began in Italy in the 1980s as a reaction to the

Many people buy cheap clothes from chain clothing stores, like forever 21, H&M, and Zara. Although these clothes are cheap, these clothes have a big backstory before they get to the stores. They have lots of reasons why these clothes are so cheap. There is a term for clothes that are made from overseas, by workers who are paid less. It called Fast Fashion, fast fashion are clothes are cheaper and are usually low quality (Ojiala). Fast fashion has been developing over the past two decades(Pagotto). Many of the brands that support the fast fashion trend release 18 collections a year (“Cris in Our Closets”). The Fast fashion industry provides marketplaces with inexpensive clothes for most young women (Luz).

The following is the case study of importance factor to increase growth of IKEA. IKEA, a global furniture retailer, is established on the concept of offering wide range of functional, well designed and low cost home furnishing products. The IKEA concept journey continues with global operations in 40 countries, with 330 stores. This case study takes a strategic analysis IKEA to increased growth in international border.

How often do you purchase new clothes for yourself? How much do you willing to pay for it? In recent year, the business model of Fashion & garment industry was changed to “Fast Fashion”, consumers are looking for high quality design clothing at lower prices. Therefore, more and more fashion brands understood customer needs then produce chic and aesthetic product with inexperience pricing. Most of the brands also concerns that the product lifecycle in fashion area is short, especially seasonal cloths with maximum three months only. Nowadays, “fast fashion” brand business growing is yearly increasing as well as the brand awareness.

At the same time staff monitor customer choices, check which garments are the most popular and which are not liked at all, which are asked to be in different colour. Shop assistants asking customers what their expectations are or what design they like the best and which one should come back on the store retail. Thus most of the designs are based on the customer’s preferences not the fashion specialists. All this information is sent to The Cube – main building of Inditex, where in contrast to other retailer, around 30.000 items is produced per year. This information forwarded from staff to managers, in next step is sent off to headquarters in Spain. The report from daily sales, gives opportunity to check immediately which line are less popular and they are quickly removed from rails. The data collected from customers in stores is being treated as first-hand information, it reports demand for a new garments with different suggestion or information of the most popular line, which is added in quick turnaround.

            Inditex, one of the worlds largest fashion distributors, has eight major sales formats - Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home y Kiddy's Class- with 3.147 stores in 70 countries around the world.             Inditex Group is comprised of over one hundred companies associated in textile design, manufacturing and distribution. The achievements of the company and the uniqueness of its management model, which is based on innovation and flexibility, made Inditex one of the largest fashion distribution groups in the fashion industry.             The company’s fashion philosophy -creativity and quality design together with a rapid response to market demands- has resulted in fast

Over the last few decades there has been a substantial amount of attention being diverted towards born global firms who unlike ordinary firms, have defied the traditional stage wise process of internationalization. These firms have long puzzled researchers and challenged the basic perception of internationalization. As a result it has given way to a new field of research and aroused global interest in the emergence and success of these firms. Before going into any further detail its important to understand what born global firms really are. They are defined as “a business organization that, from inception, seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries”. A more detailed definition defines born global firms as “companies who have reached a share of foreign sales of at least 25 per cent within a time frame of two to three years after their establishment”. The term “born global” was first coined together by Michael Rennie (1993) who undertook a study on firms who were capable of managing and co-ordinating resources beyond national borders and competing globally. This essay will go on explain why born global firms emerge, the factors that influence them and examples of born global firms in the real world. The Uppsala theory and Buckley and Casson’s theory of internationalization of MNE’S are used to further analyze this essay.

Abstract This chapter explores and develops fast fashion in the current retailing industry and its impacts on how the Chinese textile manufacturing industry has adjusted to remain competitive. Fast fashion evolved at the turn of the twenty-first century into a business approach characterized by fresh fashions, shorter life cycles, and faster production, placing significant pressure for rapid delivery, quality products, and low prices for each segment of the supply chain in a highly competitive environment. Manufacturers must utilize dynamic

In fact, fast fashion necessitates a fast evolving need to replace clothing products in order to keep the consumer satisfied. In this environment, it is typical to have a loss leader strategy whereby products are sold a below market price and at a loss due

This client center reinforces an operational structure that includes all phases of the style worth chain (outline, assembling, appropriation and deal in restrictive stores) (Sustainable Business Model, 2014). The client guarantee is additionally the main impetus behind the incorporation of our economic and ecological approaches utilized all through the Group 's production network. Inditex’s biggest competitors are Gap, H&M, and Benetton internationally (Sardar, 2012). Headquartered in Arteixo, Spain, Inditex has emerged as a leader in the fashion world.

Under the hard economic times in which the world is currently locked, one would be forgiven to expect that fashion is the last thing on people 's mind, especially the young and the middle-class. This is a population considered as low income and would spend much of their finances in other needs rather than fashion. However, Zara, a Spanish retail fashion giant, has achieved just that by providing clothing and fashion at an affordable price for those conscious of fashion. Zara has made a business out of promoting people to wear fashionable clothes and purchasing them at prices they can afford at Zara stores. The company has enjoyed success in the textile industry owing to its unique business strategy and the brand image. Among many clothing retailers, up to date fashion clothes, affordable prices, fast operations, and brand culture are the main reasons that have enabled the company stays ahead of the pack in the fashion industry.

The last decade has witnessed a significant transformation that fast fashion has become a key feature in current fashion industry. Although it was regarded as a niche concept offered by a few winners such as Zara and H&M, fast fashion has now been adopted as a key operation mode by many brands in the fashion market (Baker, 2008), using advanced and more efficient supply chains to be more responsive to changing trends towards customer demand. Hence, Fast fashion brands perform relatively better than other fashion brands in various aspects. (Mattila et al. 2002: 340 – 351)

The term fast fashion has normally used by fashion retailers, suppliers, and fashion critic in the recent decades. Nothing is really new with the concept. The roots might be followed over to the advancement of Quick Response (QR) strategy in the late 1970's and throughout the 1980’s as US textile and apparel suppliers experienced extreme intense pressures from Far East and other lower-require supply nations. However, the way in which fast fashion concepts have been implemented successfully by generating QR strategy has just been started in the 21st century. For instance, the international QR strategy’s pioneer, Zara, entered UK high street in 1997 with its first experimental store being opened in Regent Street London, and currently change their store’s apparels within only 15 days. As a result, they are one of the