I . Background Inditex, founded by Amancio Ortega, operates six different chains: Zara, Massimo Dutti,Pull&Bear, Bershka, Stradivarius, and Oysho. Since 2006 when the case was written, Inditex hasadded Zara Home and Uterque to its collection. 1 The retail chains were meant to operate asseparate business units within a structure, which included six support areas and nine corporatedepartments. Each chain addressed different segments of the market, but all share the samegoal: to dominate their
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Zara Case Management 454 3/20/14 Founded in 1975 by Armancio Ortega, Zara is a very successful Spanish clothing and accessory realtor and the first business to start the Inditex Group empire. Starting in a small Galician city known as La Coruna in Spain, Zara has grown to be a retailer powerhouse with over 6,000 stores in 85 different countries. Although the number of stores and locations is constantly changing as Zara is known to open more than a store a day in past years. Zara has
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comparable competitors of Inditex. The most interesting company to compare with Inditex is The Gap. It has 5 times higher net operating revenues than Inditex in 2001. ROE measures a firm's efficiency at generating profits from every unit of shareholders' equity. However, comparisons between their ROE shows that The Gap incurred a -0.3% net loss while Inditex achieved a 22.9% return on investment. The case shows that The Gap outsourced more than 90% production while Zara has its own factories and
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rP os t 9-604-081 REV: SEPTEMBER 6, 2007 ANDREW MCAFEE VINCENT DESSAIN ANDERS SJÖMAN Zara: IT for Fast Fashion On a beautiful August night in 2003, Xan Salgado Badás and Bruno Sánchez Ocampo settled into seats at their favorite tapas bar in the Spanish city of La Coruña, ordered pulpo gallego (octopus Galician style), and resumed their argument. Salgado was the head of IT for Inditex, a multinational clothing retailer and manufacturer headquartered in La Coruña (see Exhibit 1 for a map)
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Case study: Zara, Fast Fashion from Savvy Systems Introduction The poor, ship-building town of La Coruña in northern Spain seems an unlikely home to a tech-charged innovator in the decidedly ungeeky fashion industry, but that’s where you’ll find “The Cube,” the gleaming, futuristic central command of the Inditex Corporation (Industrias de Diseño Textil), parent of game-changing clothes giant, Zara. The blend of technologyenabled strategy that Zara has unleashed seems to break all of the rules
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middle-aged mother buys clothes at the Zara chain because they are cheap, while her daughter aged in the mid-20s buys Zara clothing because it is fashionable. Clearly, Zara is riding two of the winning retail trends - being in fashion and low prices - and making a very effective combination out of it. Much talked about, especially since its parent company's IPO in 2001, often admired, sometimes reviled, but hardly ever ignored, Zara has been an interesting case study for many other retailers
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9-703-497 REV: DECEMBER 21, 2006 PANKAJ GHEMAWAT JOSÉ LUIS NUENO ZARA: Fast Fashion Fashion is the imitation of a given example and satisfies the demand for social adaptation. . . . The more an article becomes subject to rapid changes of fashion, the greater the demand for cheap products of its kind. — Georg Simmel, “Fashion” (1904) Inditex (Industria de Diseño Textil) of Spain, the owner of Zara and five other apparel retailing chains, continued a trajectory of rapid, profitable growth by
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THE CASE OF ZARA: PLANNING AND STRATEGIC CONTROL Alexandra Iacob University of Huelva HUELVA, SPAIN 2015 Abstract Zara is a retail company belonging to the Spanish company Inditex Group. Currently, Zara has 1,808 stores in 86 countries. This paper will analyse Zara’s business model, based on innovation and flexibility, as well as logistics chain and the various tools used to recognize the continuous changes in fashion trends and turn them into a product marketable within a few weeks. Compared with
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16 Global Reporting Initiative Indicators Letter from the Chairman Inditex business model 18 IP 53 IC 54 Inditex Commitment 163 Inditex Performance 20 26 28 46 Summary of 2009 financial year Milestones for the year Commercial concepts International presence 56 66 124 136 Customers, shareholders and society Corporate Social Responsibility Human Resources Environmental dimension 4 Inditex Annual Report 2009 164 LD 309 Legal Documentation 167 233
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CASE STUDY : Multinational Outsourcing and CSR. Inditex: The worldwide outsourcing garment industry and social community development in Morocco “Intermón claims that pressures on foreign clothing suppliers are smothering employees. […] In Morocco, where Cortefiel, Inditex (Zara), Mango and Induyco (El Corte Inglés) manufacture their products, a Tangier based textile factory sold a pair of slacks to large Spanish retailers for 3.3 euros three years ago; today, the same item sells for 2 euros
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