Strategic Assesment at Inditex

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  • Topic: Inditex, Management, Zara
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Due date 29.11.2010

Business Quality Management

Strategic and Operational Performance Assessment at Inditex Group

Statescu Victor (victor_dreadknight_2006@yahoo.com) Professor: Purcarea Irina

Teodorescu Florian Andrei (tzoppy_2004@yahoo.com)

Vulpescu Victor-Emanuel (victor_joola@yahoo.com)

Tanase Valentin-Stefan (valentin.tanase.89@gmail.com)

Group 137

FABIZ English 3rd year

Strategic and Operational Performance Assessment at Inditex Group

1.)Introduction

The Inditex Group (Spanish: Industrias de Diseño Textil Sociedad Anónima) is a large Spanish corporation and one of the world largest fashion groups. The Inditex Group is made up of almost a hundred companies dealing with activities related to textile design, production and distribution. Amancio Ortega Gaona is the founder and current chairman of Inditex. He is also Spain's richest man. Inditex runs over 4500 stores worlwide for different brands: • Zara International (833 stores)

• Pull and Bear (423)
• Massimo Dutti (360)
• Bershka (354)
• Stradivarius (257)
• Oysho (146)
• Zara Home (105)
• Lefties ()
In Romania, Inditex is in a continuous development and has at this time 37 stores in the most important cities of Romania . Most stores are corporate-owned since franchises are only conceded in areas where corporate properties can not be bought (as in the Middle East). The group designs and manufactures almost everything by itself, and new designs are dispatched twice a week to Zara stores.

History

The first Zara shop opened its doors in 1975 in A Coruña (Galicia Spain), the city which saw the Group's early beginnings and which is now home to its central offices. Today Inditex's shops can be seen in places like New York's Fifth Avenue, Paris' Champs-Élysées, London's Regent Street or Tokyo's Shibuya Shopping Centre. At Zara, design is conceived as a process that is closely linked to the public. Information from our stores is constantly transmitted to a design team made up of over 200 professionals, informing them of our customers' needs and concerns. Zara has stores specialized in junior fashion called Kiddy’s Class. Theses stores are in Spain, Portugal, France, Italy and Greece. Zara is in step with society, dressing the ideas, trends and tastes that society itself has developed. That is the key to its success among people, cultures and generations that, despite their differences, all share a special feeling for fashion.Question 1 – Zara’s Business Model and Competitive Analysis

Zara, the most profitable brand of Inditex SA, the Spanish clothing retail group, opened its first store in 1975 in La Coruña, Spain; a city which eventually became the central headquarters for Zara’s global operations. Since then they have expanded operations into 45 countries with 531 stores located in the most important shopping districts of more than 400 cities in Europe, the Americas, Asia and Africa. Throughout this expansion Zara has remained focused on its core fashion philosophy that creativity and quality design together with a rapid response to market demands will yield profitable results. 2.)Process Management and Business Model

The Inditex business model is characterized by a high degree of vertical integration compared to other models developed by our international competitors. It covers all phases of the fashion process: design, manufacture, logistics and distribution to its own managed stores. It has a flexible structure and a strong customer focus in all its business areas. The key element in the organization is the store, a carefully designed space conceived to make customers comfortable as they discover fashion concepts. It is also where we obtain the information required to adapt the offer to meet customer demands. The key to this model is the ability to adapt the offer to customer desires in the shortest...
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