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Zara Case Study

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CONTENTS

1. Introduction 3

2. Zara as Company 4-5

3. Zara’s Model of Operation 6

4. Company’s Structure 6

5. Vertical Integration 7

6. Push and Pull System …show more content…

Zara as Company:

The relatively biggest and famous fashion distributor Inditex is parent company of Zara. In august 2008, Inditex acquired another famous brand GAP. This resulted in making Inditex as world’s biggest retailer (The Guardian, 2008). Zara has a contribution of 2/3 of the sales in the parent company which makes them the important brand of the company.

According to the data acquired by the company’s website, evolution and origin of Zara can be seen as follows,

In 1963, textile manufacturer Inditex is formed by Amancio Ortega Gaona. In the next decade of 1963 – 1974, it distributed many products to the different countries in Europe by setting up number of manufacturing units. In 1975, A Coruña witnessed First store of Zara on Central Street. Over the period of 8 years starting from 1976, business of Zara has grown tremendously and by the end of 8 years in 1984, it has almost acquired Spanish market by attracting majority of the society. Around December 1988, Zara crossed the borders of Spain and started their international store in Portugal (Oporto). Zara opened their international store in USA on the streets of New York in 1989 which was considered to be the next step of Zara of going international and considered to be the second international opening. In 1990, they opened their third store in France (Paris).

Inditex planned their growth by opening Pull and Bear Chain as a sister company of Zara which almost

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