Zara’s (Inditex’s) Internationalization? Essay

265 WordsJul 26, 20142 Pages
Which theory is the best representative of Zara’s (Inditex’s) internationalization? 2. Please evaluate the competitive strategy of the three world market leaders. Which of the three will be the future winner with regard to global retailing in the fashion world? 3. What are the advantages and disadvantages of Zara’s (Inditex’s) multi-brand store strategy? 4. How successful do you think Zara has been in meeting the ‘risk of cannibalization’ as a consequence of the multi-brand strategy? 5. What are the advantages and disadvantages of going into a joint venture with Tata in India? Introduction Amancio Ortega is the founder of the Zara, And he saw the need for retailing and manufacturing to work closely in the clothing industry where consumer demands are hard to predict. The first Zara store was opened in La Coruna in 1975. In 1985, Inditex was formed as a holding company atop of Zara, other retail chains and a network of internally owned suppliers. Zara’s current CEO, Jose Maria Castellano Rios shared Ortega’s belief that the use of Information Technology (IT) was key in enabling the kind of business they wanted to build. In 2003, there was a debate between Xan Salgado Badas (Head of IT for Inditex) and Bruno Sanchez Ocampo, the technical lead of POS (Point-Of-Sales) system about the need to upgrade Zara’s POS system. Salgado thought that the time was right to upgrade the company’s POS system as it was still running on outdated DOS technology. Yet, Sanchez argued that the existing POS terminals were working perfectly and that their POS should continue running on

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