products are shipped twice a week allowing constant changes in style selection. Customers enjoy coming to Zara because each time they shop‚ they find new clothes‚ shoes and accessories. This intrigues them and‚ as a result‚ prompts them to visit Zara’s stores more often than its competitors’. By constantly introducing new‚ low-price items‚ Zara entices new and existing clients to return to Zara regardless of sales. Such a business model increases customer satisfaction as well as company profits
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Vivian Pankey Neisha Vitello Executive Summary Zara is the flagship fashion retail company under the parent corporation Inditex. First opened in Spain‚ Zara currently has a network of 1‚292 stores spread across 72 countries. The infrastructure Zara has built is a core competency. Their innovations to bring new fashion designs to market faster than competitors differentiates Zara from their rivals. Managers believe the allure of Zara is the freshness of its offerings‚ the creation of a sense
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Study Trip Report - Madrid How did Zara become a successful player in the global fashion market? 1. Abstract This academic report is connected to the study trip topic “Adaption of Spain to a globalized economy”. It is focused on the international development of Zara Clothing in an international competitive market and is based on current news‚ statistics and the company his annual report. A few years ago‚ the retailer introduced a unique business process‚ which makes them the leader in fast
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Zara Case Study Main Problems Zara need to adapt their strategy to ensure future stability in meeting the demands of a larger customer base. The problems that they need to address are as follows; Rapid Organic growth outside of Spain – Zara have shifted focus into expanding overseas‚ specifically the Asia region. According to Exhibit 8‚ 120 new Zara stores were opened outside of Spain in 2010. Despite the current centralized distribution model working well and at below capacity‚ continuous rapid
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Company Case: Zara: The Technology Giant of the Fashion World Identification of the Problem/s or Issue/s Zara‚ a Spanish-based chain owned by Inditex‚ is a retailer who has taken a new approach in the industry. By owning its in-house production‚ Zara is able to be flexible in the variety‚ amount‚ and frequency of the new styles they produce. With their unique strategy‚ Zara has the competitive advantage to be sustainable. In order to maintain that advantage and growth they must confront certain
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itself through its original strategy and its lightning growth: Zara. This apparel retailer belongs to the group Inditex‚ which also owns for example brands such as Massimo Dutti and Bershka. The company’s headquarters are in Corunna (Spain)‚ and was founded in 1975 by Amancio Ortega. The concept of Zara’s stores is to propose a wide range of clothes as well as underwear‚ accessories and shoes –and even recently‚ interior decoration with Zara Home. Stores can be compared to luxury shops in terms of
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Financial analysis Inditex group is not affected by the economic crisis : There is an increase in profits in the past 5 years ; Spain is totally affected by the crisis but Inditex is number one in the sector of fashion with 8‚1 billions € of sales from the beginning of the year (2014). And the almost nonexistence of debt since the creation of the group shows that Inditex group is a strong company that is right with its longterm strategy. MidSeptember 2014‚ it was noticed a decrease in the benefits of 2
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relevant literature. Zara has been the major pioneer of ‘disposable’ fashion; which makes up over 12% of the UK clothing industry. Zara outperforms its rivals in profitability‚ brand identity‚ and its successful business model. I have used Porter’s five forces model (Porter‚ 1995) to analyse the industry and Zara’s strategic position. I have applied the theory of this model and its determinants to my research of Zara; providing evidence to form strong conclusions. Zara faces competition from
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CONTENT Report On Zara Global Strategy 1.0 Background Zara is a subsidiary of the Spanish Inditex Group‚ which are a fashion apparel brand and a flagship chain store. It is the third clothiers in the world and the first in the Spain ranking. In 1975‚ the founder-Amancio Ortega opened the first retail stores in the Spain. (PANKAJ and JOsé‚ 2006).The brand founder Amancio Ortega saw a movie that called Zorba the Greek and he decided to use the movie name for their brand name. But‚ there
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business models. Inditex owned much of the production and most of its stores. Inditex is thus a vertically integrated company. This gave Inditex a competitive advantage‚ which is quick response to the market requirements. On the other hand‚ The Gap and H&M have a different business model. They owned most of the stores‚ but outsourced all the production. And Benetton had a third business model. It invested heavily in the production‚ but licensees ran its stores. To prove Zara has the prospect of
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