Zara Fast Fashion

2092 WordsMar 14, 20119 Pages
1- With which of the international competitors listed in the case is it most interesting to compare Inditex's financial results? Why? What do comparisons indicate about Inditex's relative operating economics? Its relative capital efficiency? Note that while the electronic version of Exhibit 6 automates some of the comparisons, you will probably want to dig further into them. Background: Inditex is an international fashion retailer that designed, manufactured and sold apparel, footwear, and accessories for women, men, and children through Zara and other five chains around the world. The six retailing chains were organized as separate business units within an overall structure that also included six business support areas and nine corporate…show more content…
Zara's competitiveness comes from: o ________Innovation: not to stop but always producing new things based on customer desires and changes in market. o ________Segmentation: the company took advantage of unserved segment, a segment where some one might offer good quality fashion at a reasonable price and managed to insert themselves in. o ________Simple strategy: the company is looking for a target without analyzing ages or lifestyles, which simplifies things a lot. It targets buyers who like fashion and that is not limited by international borders. o ________Selection of personnel: having motivated and dedicated personnel, people who think about the company 24 hours a day, people who understood this type of work from the outset. o ________Quick response time that led to significant compression of cycle times enabled by improvements in information technology and encouraged by shorter fashion cycles and deeper markdowns. o ________Experience regarding real estate, personnel costs, hiring and other contract negotiating. However it is difficult to decide that Zara will not step down because there is always uncertainty in the market and the degree of certainty in planning decreases over time but as long as the company continues to maintain the philosophy of adapting to the market and operates from the bottom up, it will not be dropped out. 5- Was Galicia/ Spain fertile ground for the emergence of an apparel retailing powerhouse? It is fair to

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