PESTLE analysis of Inditex

The Inditex Group Inditex, Industrias de Diseño Textil SA, is a group of almost one hundred companies dedicated to the different activities encompassed by the business of designing, manufacturing and distributing textile goods. The Spanish company was founded by Amancio Ortega, who remains the company's biggest share holder, in 1975 and started off as a family business. The group's achievements, together with the uniqueness of its business model which is based on innovation and flexibility have made it one of the largest fashion groups worldwide. The group's understanding of fashion, creativity and quality design and an agile response to the market demands have resulted in fast international expansion and a warm welcome of the business concept on behalf of the public. Inditex is present in 77 countries with stores of its nine different brands. The group's most renowned brand alone, Zara, has over 1600 stores around the globe (Inditex, N.D.a). Inditex is the only clothing company in the international field with its own manufacturing process. The supply of raw materials, the distribution process and the most capital intensive production phases such as design, quality control and packaging are all run within the group itself. The more employee intensive phases, however, are subcontracted to nearby businesses. Inditex has managed to adapt itself to the peculiarities of each of its market destinations. Thus, in areas where there is a high competition, a low risk or a high growth potential (that is most of Europe and the whole of America) the company adopts a position of growth through subsidiaries. In highly competitive unfamiliar markets it does so through joint ventures that soften the learning effect (such as Japan and Germany). And in situations where the risk is high and sales are low, where the cost of building its own stores is very high, acting through franchising (Middle East and Scandinavia).

PESTLE Review PESTLE describes six

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