Compare And Contrast The Logistics And Distribution Strategy Of Zara

Logistics and Distribution Strategy Zara has two week orders per week from its stores around the world on specific days and hours, so with shipments from logistic center in La Coruna. All products are labeled and priced and spend by buses and air-planes. This is one of the biggest advantages of Zara from other competitors, because usually it takes about 5-6 months to get new collection, but Zara has new collection twice per one week.
Follow the leader
Imitating a leading competitor’s strategy may be a good idea, unfortunately it ignores a firm’s strengths and weaknesses, but not in our case. There is only one competitor for Inditex and it is H&M. Alongside with H&M, they are both dominant in Europe, growing steadily in the Americas and now focusing on more rapid scaling across Asia. For example, in 2011 the company opened 179 new stores in Asia and 156 of these were in China. Hit another home run
If a company successful because it developed very successful product, it tries to search for another super product that will ensure growth as previous one and again not in case with Inditex. You know that Inditex and its Zara brand is opening 10 new

In addition to this, 8.7% store growth, the company recorded space growth of 11.4% as it continues to reconstruct and increase storefronts. Related to this growth, this past year Inditex’s operating expenses including start up costs for new stores grew by 14%, along with a 14% increase in personnel expenses and a 9.3% increase in rental expenses. Ordinary capital expenditures reached $1.44 billion, driven by new stores. Despite expansion, the company’s EBITDA margin and net income margin increased from 2011 to 2012, as did return on equity. Inditex essentially has no debt and strong cash reserves, allowing it to self - finance expansion projects with cash from operations and even increase dividends during this rapid