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Zara / Globalizing the Value Chain

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Zara / Globalizing the Value Chain
Table of contents

1 Key figures about Zara 1
2 Exogenous factors during Zara’s foundation and globalization 2
3 The method of Zara 2
4 Bibliography 4

Key figures about Zara
Zara, main subsidiary of the La Coruna (Spain) based Inditex Group Inc., was founded in 1975 and has become world’s largest clothing retailer in 2008 (Clark & Keeley, 2008). On the way to the top of the global retail industry it passed some decisive events that transformed the formerly founded pyjama and dressing gown making company into the world leader of fashion industry (see exhibit 1).
Exhibit 1: Globalization of Zara stores
Spain - 1st Zara in A Coruña
1975
Paris (France)
1990
New York (USA)
1989
Portugal - 1st Zara outside Spain in O Porto
1988
Mexico
1992
Belgium & Sweden
1994
Greece
1993
Andorra, Austria, Denmark & Qatar
2000
Finland, Switzerland, EL Salvador, the Domenican Republic & Singapore
2002
Slovenia, Slovekia, Russia & Malaysia
2003
Monaco, Indonesia, the Philippines & Costa Rica
2005
Serbia, mainland China and Tunesia
2006
Croatia, Colombia, Guatemala & Oman
2007
Korea, Ukraine, Montenegro, Honduras & Egypt
2008
Morocco, Estonia, Latvia, Romania, Hungary, Lithuania Panama
2004
Syria
2009
India
2010

1000st Zara shop

Zara is now in 73 countries
Malta
1995
Cyprus
1996
Norway & Israel
1997
UK, Turkey, Argentina, Venezuela, UAE, Japan, Kuweit & Lebanon
1998
The Netherlands, Germany, Poland, SA, Bahrain, Canada, Brazil, Chile & Uruguay
1999

Zara is now in 56 countries

Source: Author based on Inditex Group, 2010
As it can be seen from the graph above, Zara first focused primarily on the national market until 1988. In a next step it grew predominantly in Europe before expanding heavily all over the globe, reaching among others markets such as Montenegro, Syria or the Philippines. But what made Zara so successful in becoming a global player so fast? What have been the


Bibliography: Clark, A., & Keeley, G. (2008, August 11). Zara overtakes Gap to become world 's largest clothing retailer. Retrieved September 21, 2010, from www.guardian.co.uk: http://www.guardian.co.uk/business/2008/aug/11/zara.gap.fashion Foreign Policy. (2008). Fashion Forward. Foreign Policy , 28. Inditex Group. (2010). Inditex Corporate website. Retrieved September 21, 2010, from http://www.inditex.es/en/who_we_are/timeline Jones, G. (2010). Multinational Strategies and Developing Countries in Historical Perspective. Harvard Business School Working Paper n° 10-076. Leknes, H. M., & Carr, C. (2004). Globalisation, International Configurations and Strategic Implications: The Case of Retailing. Longe Range Planning , pp. 29-49. Roux, C. (2002, October 28). The reign of Spain. The Guardian . Tokatli, N. (2007, October 23). Global sorcing: insights from the global clothing industry - the case of Zara, a fast fashion retailer. Journal of Economic Geography , pp. 21-38.
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