Business Case Study: Inditex

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INDITEX at a glance
The Inditex Group is one of the largest fashion companies in the world and operates in textile, design, manufacturing and distribution. It dates back to 1963 when it started life in a small workshop making women’s clothing. The principal recruitment source in Inditex is its stores. They are located in the main cities, often in some kind of symbolic street and shopping area, which facilitates the accessibility. (Inditex annual report, 2007) The sores are seen as a meeting point that unites customers and fashion, therefore, they play a major role in the business model and are carefully designed after each concept. Inditex spends a lot of time on designing the interior of the store and its windows, as the store environment
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Today it has over 6,460 stores throughout the world. The key factors behind the company’s success are the positive reception of the concepts in various countries and Inditex’s unique business model. Its international success has been enabled through the approach Inditex has to fashion, which focuses on creativity, quality, design, price and a rapid adaption to market changes. Inditex’s business model is based on innovation and flexibility, which goes hand in hand with its approach to fashion. Inditex was incorporated as the Group’s holding company; the Group lays the foundations for a distribution system capable of reacting to shifting market trends extremely quickly. Through its history the Group has evolved to become the business it is today reaching many notable milestones along its journey. But it has always remained focused on listening closely to its customers to offer them the fashions they desire. This strong customer’s orientation would give rise, years later, to the launch of the first Zara store in 1975. This was followed by the brand’s international expansion at the end of the 1980s and the successive launch of new retail concepts: Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara…show more content…
Since then, the company has continued its spectacular growth. (Inditex annual report, 2005) Inditex points out that “it is possible to both grow and maintain profitability levels by making the most of the competitive advantags of our business model as the Group becomes larger and more complex” (Inditex annual report, 2004) The year Inditex fisrt ventured into the world of e-commerce was 2007, in which it launched the online store of the Zara Home concept (Inditex, 2011) Inditex is characterized by the successful international expansion that has been going on for more than two decades, making it a company with a significant presence on the international market compared to other companies in

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