Zara International Case Study

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Zara International was a retail shop originated in La Coruna, Spain in 1975. It was clothing and accessories shop and imitated the latest fashion trends and sold them at a lower cost. It became Zara International after entering Portugal in 1988 and then the United States and France in the 1990s. The distributor for this brand is Inditex and is considered the most successful retail chain in the world. Zara has a business strategy that is very different from the retailers nowadays. If a customer orders a product Zara’s distribution centers can have the items in the store within 24 to 48 hours of receiving the order, depending upon the country. The business plan that Zara’s executives made was very innovative and played a great part in the…show more content…
The latest trends in the competitive apparel industry are companies going digital. Reinvention of fashion runways and then use of social media in publicizing the latest fashion is a hot trend. Use of mobile devices such as smartphones and iPads for shopping for the convenience of customers is also a very hot trend. There are also virtual dressing rooms and interactive store windows that make shopping for apparel easier (Agathou, 2012.) Zara has also started to come up with innovations to stay in the competition. Zara International has launched its online store in Mainland, China (Inditex to launch, 2012). Zara has also expanded its stores internationally by entering South Africa this year (Kew, 2012). Zara International will definitely continue to do well with the business strategy. However it will still have to adapt to the changes in the global economy and plan their business strategies according to the customers and clientele. It will do well since it is expanding internationally and also adapting the latest technologies. Zara International has gained huge success by following the classical management approach and the behavioral management approach. Inditex has used a distinctive business strategy in their production and inventory control. Even in the competitive trends in apparel industry, Zara will survive in the competition if it continues to do business according to the clients’ needs and wants. BIBLIOGRAPHY

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