Inditex

Topics: Strategic management, Value chain, SWOT analysis Pages: 13 (2539 words) Published: June 17, 2014
Giovanni Chirico

HULT International Business School

April 20, 2014

INDITEX GROUP
Global Strategy - Abbey Road

Executive Summary
At the beginning of every successful business is a vision, strategy , mission and values . Inditex he created a unique business model in the world that is characterized by speed, innovation and flexibility. What started as a small store, has become he No. 1 textile retailing worldwide. Inditex , with its particular business model has revolutionized the fashion world , directing his whole value chain to the customer. The client no longer closes the value chain but the conditions. Inditex 's competitive advantage can be summarized in three words: flexibility, speed and innovation. Their ability to periodically provide new clothing collection reflecting the fashion trends and the current high demand, but at a price that remains affordable for most people, is the key to success that its competitors can not copy so easily. In times of economic turmoil , the Group presents new strategies to deal with the temporal. Like for example, raise the brand positioning leaving behind the image of " low cost", expand its production area to other nearby countries such as Morocco and use new forms of communication. Undoubtedly, these new strategies are called to the fore in the coming years .

Global Strategy 1

Giovanni Chirico

HULT International Business School

April 20, 2014

External Analysis
Through analysis of the external threats and opportunities that exist in the environment and can influence the company is possible to identify flaws in the business model or even asses on recommendations to improve company performance.

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The general environment influences significantly the Inditex group as it is constantly changing, and more during the last years of economic crisis causing the market evolves very quickly. These factors that influence the progress of the company will be reflected later in the threats and opportunities.

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In order to study how Inditex is affected by external factors a PEST analysis (Appendix A) was developed and analyzed, and in order to understand the environment a Porter 5 FORCES analysis (Appendix B) was made.The textile sector is in constant change driven by the globalization of the market and encouraging it to expand to many countries.

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Based on the SWOT and PEST analysis the key drivers of the industry are

Key External Points
“Doing things better is permanently on our mind”
PABLO ISLA INDITEX CHAIRMAN

Economy / Demand

The overall status of the economy defines the demand of
the product, in the textile industry, there's always demand because people need to dress and people are always changing styles according to current fashion trends, right now the economy is in recovery mode, meaning that the disposable income is substantially lower than pre 2008, in the specific case of Inditex and its brands, being low cost, the crisis actually didn't affect the company as much as other companies

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Society
People are increasingly more susceptible to fashion trends, each year and with most of its brand Inditex aim to satisfy that need for clothes according to fashion trends at affordable prices.

Global Strategy

2

Giovanni Chirico

HULT International Business School

April 20, 2014

Competition
Inditex faces numerous competitors both within Spain and outside. Competition in this sector is high, and although the group is a world leader, the companies on this industry are facing numerous problems, and factors that differentiate competitors are several such as marketing, quality, design, innovation and price, highlighting that the group adaptation to the needs of customers and the speed of service has proved been a competitive advantage.

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Internal Analysis

The internal analysis of Inditex was made using the SWOT Analysis tool (Appendix C) in which were identified strengths, weaknesses, opportunities and threads. The...
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