Zara Growth Essay

1373 Words6 Pages
Summary: Case “Continued Growth for Zara and Inditex” talks about Inditex beased in La Coruna, northwestern Spain which left Gap Inc. behind in 2010 to become the most-selling fashion retailer in the world. Inditex have more than 4,600 in 76 countries. Inditex owns brand Zara, and seven other smaller store brands like Massimo Dutti, Bershka, Pull & Bear, Zara Home furnishing and few more. The Parent company is facing some problems since 2008 which are competition from GAP Inc, global economic downturn, giving competition to its famous brand Zara are Gucci, Burberry, Louis Vuittton, Italy’s Benetton Group, Forever 21, Japanese Fast Retailing Co., Patagonia Inc., and few others competition, increasing costs where costs are growing faster than sales, late entry into online market, large production at home which is putting supply chain efficiency under pressure, decline in its net profits in 2008, 2009 and global expansion are the problems the company is facing. The Chief Executive of parent company ‘Pablo Isla’ wants Zara to be the fastest globally expanding brand the fashion world have ever seen and be the leader in fashion industry with affordable prices. Their business model is fast turnover rate and saavy information systems. The Company targets fashion conscious young adults,who are often willing to pay a high price. The company is twofold plan to grow in Europe and Asia by 2013 which is going to reduce the Spain sales to 20% from 31.8% in 2010, Europe excluding Spain going to give 50% to the total sales, Asia 20% and America 10% respectively. Problem:  How can Inditex make itself the leader into the fashion industry ? Alternatives: 1. Growing by 30% in America 2. Focus on online expansion and expand agressivly into international markets by opening more production & distribution centers in Europe, Asia and America. 3. Continue to find creative

More about Zara Growth Essay

Open Document