Fashion Company: Zara and Inditex Essay

Fashion Company: Zara and Inditex Essay

Length: 1590 words (4.5 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

Zara is a fashion company that runs internationally and does so being a part of five other apparel retailing chains. Inditex (Industria de Diseno Textil) of Spain is the owner of the chains with Zara being the most successful of the chains. Inditex’s founder and owner is Amancio Ortega, a man who is Spain’s richest man despite starting off as an errand boy. Inditex came out on fire with their Initial Public Offering in May of 2001. They enjoyed an increase of nearly 50% of its stock price in the next 12 months. All of that while entering into bearish stock market conditions. The one challenge that was highlighted during this was significant growth. Its future growth had to match the expectations and reach the bar set high by its initial success.
Zara has been open since the year of 1975 and provides clothing for women, men, and children. These different areas of clothing each have their own team focused on making sure they have the newest and trendiest fashion in their clothing. Zara, which started small, now has over 500 stores in 30 different countries. Zara has become the number one retail chain Inditex. This is mainly due to their short cycle time, advanced manufacturing systems, and their forward thinking global perspectives. Zara’s success has come with a lot of praises, but has a few shortcomings as well that limit the full potential it can reach. For a consumer in North America or Asia, Zara may not be very familiar to them. That is because even with the accomplishments and continued success in South America, Europe, and even the Middle East, Zara has not been able to develop a successful presence in Asia or North America. The problem immediately realized from this is the concern that a strong company is ...


... middle of paper ...


...motivated by impulse to start buying online. As Zara wanted people to impulse buy due to its quick turnover, the same will happen online and can be even more effective. The last thing implemented by Zara is the addition of greater inventory into the stores, but that can be increased over time with rising interest.
Inditex has been very successful for a long time with the business strategies they have been able to apply for years. Zara has had much success and that has been achieved even with the challenges it faces today. Implementation of a solid future strategy will have great long-term impact on Zara. Improving advertising, increasing levels of inventory, and adding more physical stores will make Zara even more successful in the future. Overall, Zara is a great company doing a lot of things right and is a prime example of what it takes to be a success.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Fast Fashion Industry: Growth of Zara and Inditex Essay

- Fast fashion Fast fashion is merely more than a one hit wonder. The fast fashion industry has grown and has ultimately proven itself to be profitable industry in the clothing market. The retailer most distinguished for a fast fashion approach is Zara (Hayes & Jones, 2006). Zara is a child company of the parent company Inditex. Zara stores have established the stride for merchants around the globe in creating and shipping fashionable clothing (“Case 3-4. Continued Growth for Zara and Inditex”, 2013)....   [tags: marketing strategy, marketing mix, diversity]

Powerful Essays
1533 words (4.4 pages)

The Inditex Group Essay

- Inditex is one of the principal fashionable distributors of the world that have 3,106 establishments at 64 countries, with eight commercial formats - Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Kiddy 's Class -. The Inditex Group joins together in addition to a hundred of affiliates with the different activities that conform the business of the design, the manufacture and the textile distribution. The singularity of his management model, based in the invention and flexibility, and the attained achievements, they have turned Inditex into one of the bigger groups of distribution of fashion....   [tags: Company Market Analysis Distribution]

Free Essays
1292 words (3.7 pages)

Fashion Retailer Supply Chain Model: Zara Essay

- Through the use of literary articles and other academic material this paper will review the strategic supply chain initiatives that gives Zara an advantage over it’s competitors. The report will examine other fashion retailers supply chain model to show how Zara has mastered the supply chain model to gain advantage over others. The Report will also examine the following areas. i. Origins and history of the organization. ii. Examination of Zara’s supply chain model. a. New product design. b. Manufacturing....   [tags: design, new products, stores]

Powerful Essays
1438 words (4.1 pages)

The Impact Of Fast Fashion On The Retail Industry Essay

- Fashion is a word that can mean many different things. To some it means what models wear on the runway. To others, fashion means the clothing styles that people wear on a daily basis. A good place to start this discussion would be to define what Fast Fashion is; it is the rapid conversion of design trends into multi-channel volume. Fast Fashion may be the most significant disruptive in the retail industry today. Troublesome novelties, or product or services, that alter an prevailing market by presenting minimalism, suitability, convenience and affordability, have the most positive influence on a company....   [tags: Fashion, Clothing, Fast fashion, Retailing]

Powerful Essays
978 words (2.8 pages)

Zara Clothing Company Supply Chain Essay

- The following paper analyzes the supply chain strategies conducted by Zara, European based retail store, with the aid of “Zara Clothing Company Supply Chain,” a recent article that analyses Zara’s success through its supply chain. Further, it highlights the strengths and key practices that allow Zara to be able to have such a successful supply chain in regards to efficiency and responsiveness. “Zara Clothing Company Supply Chain” (2016) is a study conducted by SCM Globe, an online supply chain design and simulation tool....   [tags: Supply chain management, Supply chain]

Powerful Essays
928 words (2.7 pages)

Essay on Zara's Business Profile

- Zara's profile Zara is a fashion brand which was established in 1975 by the Spanish Inditex group which was owned by Amancio Ortega. The brand is supported by other sister companies like Bershka, Massimo Dutti, Pull and Bear, Stradivarius, Oysho, Zara Home, Zara kinds and Uterque. Zara has made huge profits during the last two decades and is now ranked the third biggest retailer world-wide (Zhang, 2008). Unlike its competitors, Zara produces more than half of its products in Europe and not in Asia or South America as most companies do nowadays(Bruce and Daly, 2006)....   [tags: global fashion brands]

Powerful Essays
1266 words (3.6 pages)

Essay on SWOT Analysis: Zara´s Managers

- Inditex is the largest fashion retailer in the world, it has seven chains, they are Zara, Pull and Bear, Massioino Dutti, Stradivarius, Bershka Oysha and Uterque. SWOT analysis might help the executive to understand the opportunities and threats in the environment with the strengths and weakness of Inditex; thus help the executive to evaluate existing strategies and formulate the new master strategies (growth strategy, stability strategy and retrenchment strategy). Such as allocates resources, address the overall direction, support to its retail concepts, and international expansion and new concepts in existing markets....   [tags: business, fashion, analysis]

Powerful Essays
621 words (1.8 pages)

Zara Fashion Essay

- ZARA Fashion 1) With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results. Why. What do comparisons indicate about Inditex’s relative operating economics. Its relative capital efficiency. Note that while the electronic version of Exhibit 6 automates some of the comparisons, you will probably want to dig further into them. The four companies shown above have very different business models. Inditex owned much of the production and most of its stores....   [tags: essays research papers]

Free Essays
2436 words (7 pages)

Essay on Zara: Information Technology For Fast Fashion

- Problem Statement: In 2003, Zara's CIO must decide whether to upgrade the retailer's IT infrastructure and capabilities. At the time of the case, the company relies on an out-of-date operating system for its store terminals and has no full-time network in place across stores. Despite these limitations, however, Zara's parent company, Inditex, has built an extraordinarily well-performing value chain that is by far the most responsive in the industry. Therefore the major problem to the company is to decide whether it has to upgrade the present system and by doing so, risking the reliability they have with the current system or to continue with the present DOS based system which will not be com...   [tags: Problem, Solution, Case Study]

Free Essays
863 words (2.5 pages)

Essay on Zara

- Q 1. What are the unique features of Zara's business model . Zara is one of the six retailing chains owned by Inditex (Industria de Diseilo Textil) of Spain who designs, manufactures, and sells apparel, footwear, and accessories for women, men, and children through Zara and five other chains around the world. The traditional global apparel chain had been characterized as a prototypical example of a buyer-driven global chain, in which profits derived from "unique combinations of high-value research, design, sales, marketing, and financial services that allow retailers, branded marketers, and branded manufacturers to act as strategic brokers in linking overseas factories"' with markets....   [tags: Business Analysis]

Powerful Essays
1657 words (4.7 pages)