Inditex Case Study Essay

INTRODUCTION

Industria de Diseo Textil S.A., also known as The Inditex Group, is a Spanish multinational clothing company operating in textile design, production, and distribution. Opening its first store in 1975, Inditex can be considered a late comer compared to its competitors such as H&M or Gap, who had already entered the market since the 1960s. This only serves to emphasize the fact that the company is now the biggest fashion group in the world, with 6683 stores operating in 88 markets. It also owns more brands than any other retailers – eight different brands targeting different customer demographic with Zara being its flagship chain store.

The company’s rapid expansion and innovative model have been the subjects of many case studies that attempt to analyze Inditex’s global success. The purpose of this paper is to address the association between that success and ethical issues relating to the company’s corporate social responsibility (CSR). The paper starts with an overview of Inditex’s globalization timeline, followed by reason for their actions in the respective time and places. The main parts of the paper will examine the

The limited market growth opportunity at home was therefore the main influence on Inditex’s decision to expand internationally. However it was only after Spain’s entry into the European Union in 1986 that Inditex opened its first store abroad. Freedom of access therefore is another important factor that determines the company’s scope of expansion. The removal of all import quotas in the textile and clothing industry from January 2005, involving the unrestricted access of all members of the World Trade Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector in general and Inditex in particular (Fan & Lopez, 2009,