Zara Essay

1435 Words6 Pages
MGMT 495 CASE ANALYSES Here's How: 1. Investigate and Analyze the Company’s History and Growth. A company’s past can greatly affect the present and future state of the organization. To begin your case study analysis, investigate the company’s founding, critical incidents, structure, and growth. Zara is a prominent fashion designing and manufacturing company that proved to be the most efficient market responding to customer demand in UK’s fashion industry. Amancio Ortega Gaona, the owner and initial organizer of Inditex of Spain, began as an errand boy for a La Coruña shirtmaker in 1949. He worked his way up through the company and established his own retail store through developing strategic decisions and competitive advantage over his competitors. Zara, the renowned fashion icon, was founded in 1975 on an upmarket shopping street in La Coruña. The initial goal of Zara was offer their products with affordable price to customers by producing clothes of medium quality. (Harvard )Since its establishment, Zara was able to generate rapid and high profits and it has reported 22% increase in the profit margin in 2012, mainly due to growth in eastern Europe, Canada, and China. Profit for 2012 marked €2.36 billion and sales posted €15.9 billion, which is a growth of 16% from the previous year. As a global specialty retailer that designs and manufactures its own accessories to apparel targeting people of various ages covering children to men and women, Inditex opened 482 stores just in the year of 2012, totaling 6,009 stores worldwide. Shares in Asia have now grown from 18% to 20% and from 12% to 14% for American stores. While the revenues for international market have steadily increased, Inditex sales in Spain, its home market, dropped from 25% to 21% due to Spain’s economic recession.
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