Inditex report

Topics: Strategic management, Inditex, Strategic business unit Pages: 21 (3547 words) Published: April 20, 2014

Table of Contents

Introduction
The aim and objectives of writing this report is to analyse the business strategies or models adopted by the Inditex Group and to review whether this strategies will support its operation in accomplishing their future obligation. Furthermore, it aims to evaluate the strategic option of the organization in either from a corporate strategy view or strategic business unit (SBU) perspective that could be adopted by the Inditex Group. This report will also highlight the vision, mission and objectives of the Inditex Group Company. In addition, the report will go further by accessing the group human resources and management in order to clearly pinpoint any management changes in the organization, if there is any, and to know who the management are and their position in the decision making process of the company. In order to achieve the principle objectives of this report, the report will be categorised into Internal and External analysis. This is done in order to fully analyse the current position of Inditex Group in the market from all perspectives, also to access if Inditex is a healthy company to invest in, and also accessing the current strategic adopted by the company. The company Internal analysis will be based on the following; Financial Analysis: This will focus on all the financial aspect of the company. Human resources and Management Analysis: focus on the management system of the company. Market Analysis: This will focus on the company’s current market position. Operations Analysis: This will focus on how and where the company perform it day-to-day activities. Prioritized Strength: This will analyse the strengths of the company internally. Prioritized Weakness: This will analyse the internal weakness of the company that can hinder them from achieving their goals.

The company External analysis will be based on the following; Pestel Analysis: this will analyse the possible influence of the failure or success of the company strategies. Porter 5 forces: this will help in analysing the way of attractiveness of the Clothing Industry. Critical Success Factors (CSF’s): This will focus on some unique resources that make the company successful. Prioritized Opportunity:

Prioritized Threat:

Company: Inditex Group.
The Inditex Group Company, a textile design Industries is a Spanish Multinational clothing company. Inditex have its headquartered based in Arteixo, Galicia in Spain. The Inditex Group was founded and created by Amancio Ortega Gaona the wealthiest man in Spain and third richest man in the world in 1985 and by 2001 they went public and listed on the Bolsa de Madrid stock exchange market1. The Inditex Group which is now considered as the world’s largest clothing apparel company in terms of sales is made up of over 100 companies operating in textile designs, manufacturing, and distributions. Inditex currently have 8 strategic business units operating in four geographical market segments2 which includes Spain. These strategic business units includes; Bershka, Massimo Dutti, Oysho, Pull & Bear, Stradivarius, Uterque, Zara, and Zara Home. Inditex strategic business units collectively occupied about 6249 stores in 86 markets. Company Vision: Good Faith, Dialogue, and Transparency.

Company Mission: Is to respond with agility to the demands of the market. This means that Inditex focus highly on the customers’ needs and combines these needs with high degree of vertical integration across all their business area.

Internal Analysis
Financial Analysis:
The key profit driver for Inditex Group Company is Zara, contributing 66.11% of the total net sales and 68.5% per square metre in 2012, while Bershka comes 2nd with 9.31% of total net sales in 2012. In terms of geographical region, the Europe (excluding Spain), and Spain accounted for 45% and 21% of the total net sales respectively. While the Americas and Asia (Including rest of the world) represents a significant lower amount...


References: Inditex SA, Bloomberg Market, [Online] Available at: http://www.bloomberg.com/quote/ITX:SM Accessed on 20th of February, 2014.
H&M (2014), “ H&M Opens first store in East Asia” [Online] Available at: http://about.hm.com/en/About/facts-about-hm/people-and-history/history.html Accessed on 23rd of February, 2014.
Inditex, (2008) Inditex annual report 2008, annual report 2008, A Coruna: Inditex.
Inditex, (2009) Inditex annual report 2008, annual report 2008, A Coruna: Inditex.
Inditex, (2010) Inditex annual report 2008, annual report 2010, A Coruna: Inditex.
Inditex, (2011) Inditex annual report 2008, annual report 2011, A Coruna: Inditex.
Inditex, (2012) Inditex annual report 2008, annual report 2012, A Coruna: Inditex.
Unemployment Statistics, [Online] Available at: http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Unemployment_statistics
Accessed on 20th February, 2014.
Textile and Clothing, [Online] Available at: http://www.companiesandmarkets.com/MarketInsight/Textiles-and-Clothing/Global-Apparel-Industry/NI7468
Accessed on 22nd of February, 2014.
The Economics Times, [Online] Available at: http://articles.economictimes.indiatimes.com/2013-04-29/news/38904773_1_brand-massimo-dutti-foreign-investment-promotion-board
Accessed on 24th of February, 2014.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Inditex Essay
  • Inditex Case Study Essay
  • Strategic and Financial Valuation of Inditex Essay
  • Marketing Management
  • Inditex Dossier Research Paper
  • Essay on PESTLE analysis of Inditex
  • Essay about Inditex: Scm Strategy
  • Company Analysis: Zara, Inditex Essay

Become a StudyMode Member

Sign Up - It's Free