SPAIN Many U.S. apparel retailers are choking on slow-moving inventories as consumers hold back on spending. But Spain’s Inditex‚ whose Zara chain pioneered cheap chic‚ is zipping ahead. The $13.8 billion company‚ which is closing in on Gap (GPS) for the title of world’s biggest clothing retailer‚ has nearly quadrupled sales‚ profits‚ and locations since 2000. This year‚ Inditex plans to expand by up to 640 stores. "They will weather the storms better than most of their rivals‚" says Michael Lewis
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newspapers‚ magazines‚ press releases and other publications. This report will give an intensive view from current and prospective shareholders. I will mention ‘X&Y’ as to indicate ‘X&Y X&Y Group’ from now on unless otherwise stated. I have selected Inditex Group
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world market leaders. Which of the three will be the future winner with regard to global retailing in the fasion world? Inditex is using as competitive strategy the differentiating strategy which means that the sell clothes to low costs but also to much higher cost. H&M is using the low-price-strategy as their competitive strategy. Gap Inc. has a differentiating strategy as Inditex. Both of them has a main brand and some other smaller brands.
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International Marketing William Chester Case Study 3-4 #4. Briefly describe five opportunities for continued growth during the next five years for Zara’s parent‚ Inditex‚ SA. It is important to realize the manner in which other competitor’s of Inditex‚ SA are operating. As the economic criteria for promoting an established discipline in the desired sectors‚ the most common act to follow is retreat. But as those firms hold back or constrain their efforts to accompany short term financial
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Executive Summary The objective of this document is to discuss the issue of Inditex’s DOS-base IT infrastructure and how it affects Zara’s performance. Inditex is concerned about its IT infrastructure being antiquated and the possibility that hardware vendors will upgrade their machines leaving them incompatible with DOS. Because Zara’s core business model is vertically integrated‚ it could specialize in speed and efficiency and the fast fashion trend. By assessing the pros and cons of the new
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INDITEX: Fashion Forward ZARA‚ Spain’s most successful brand‚ is trying to go global Inditex‚ one of the world’s two biggest clothes makers‚ is going to go to the world. This article “Fashion forward”is related to chapter 9. There is a saying from the founder of Inditex‚ which is flogging fashion is like fishing‚ fresh fish like a freshly cut jacket in the latest color‚ sells quickly and at a high price. Yesterday’s catch must be discounted and may not sell at all. Depending on this insight
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financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Ans. The four companies shown given in the case have very different 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
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the ways that Inditex ensures that “fast fashion” is truly fast? Inditex ensures that its fashion is fast through its supply chain efforts. They have created new methods to enable store managers to order and display merchandise faster and added cargo routes for shipping goods. The company ships clothing straight from the factory to stores and makes two-thirds of its goods in Spain and nearby countries‚ compared to most competitors who manufacture most of their clothing in Asia. Inditex has their sales
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Exhibit 6 indicates that the financial results of Inditex and H&M seem to be very comparable. However‚ a closer analysis reveals that Inditex has enjoyed a competitive advantage in operating metrics over H&M. Some comparisons of financial and commercial parameters will help to understand the relative operating economics of Inditex (all numbers in € Millions). 1. ROIC = Return on Sales x capital turnover. Inditex: 27.24% H&M: 24.16% Inditex was the most profitable firm‚ measured by ROIC
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2. How might SWOT analysis be helpful to Inditex executives? To Zara store managers? Zara is owned by the Spanish fashion retail group Inditex SA. They recognizes that success in the fashion world is based on a simple rule which is getting products to market quickly which involves a clear and focused understanding of fashion‚ the ability to adapt quickly to trends‚ technology‚ and their market. SWOT analysis is helpful to all businesses‚ Inditex executives‚ and Zara store managers because it
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