Zara
1. a. Core competencies of Inditex
Inditex’s infrastructure
The six retailing chains: Zara, Bershka, Massimo Dutti, Pull and Bear, Stradivarius and Oysho were organized as separate business units, responsible for their own business strategies, product design and other activities. Nonetheless, coordination across the chains increased an expansion power of Inditex as the Group and induced the management to open some multichain locations (Gnemawat & Nueno, p. 8, 2006).
Visionary management
The founder of Inditex, Amancio Ortega is a person, who created the “fast-fashion” model. He has been playing a very important role in forming daily operations and future strategic visions. He is a person who established culture in the company, based on teamwork, open communication and high performance expectations (Inditex, 2013).
Throughout the decades Inditex has retained strong management and clear strategic direction. The company managed to set and maintain the tasks between the main stakeholders from the early days.
Excellent managerial, technical and financial skills of Intex management enabled the company to create significant amount of cash flow and expand international (Inditex, 2013).
Inditex created and implemented policies that are in line with fundamental labour standards and environmental protection. It was the first Spanish company to sign for Global Compact program that promotes social dialog and reconcile corporate interests with values and demands of civil society (Inditex, 2013)
Vertical integration
Inditex has a distinctive supply chain model. More than 50% of its production is carried out in areas, close to the head offices and logistic centres in Spain. Bigger labour expenses, but smaller transport costs (Gnemawat & Nueno, p.6, 2006). In order to create a quicker response to changes in fashion trends and overcome uncertainties of fashion trends, the company adapted the vertical integration strategy.
Benefits of vertical integration:
Control of
Inditex’s infrastructure
The six retailing chains: Zara, Bershka, Massimo Dutti, Pull and Bear, Stradivarius and Oysho were organized as separate business units, responsible for their own business strategies, product design and other activities. Nonetheless, coordination across the chains increased an expansion power of Inditex as the Group and induced the management to open some multichain locations (Gnemawat & Nueno, p. 8, 2006).
Visionary management
The founder of Inditex, Amancio Ortega is a person, who created the “fast-fashion” model. He has been playing a very important role in forming daily operations and future strategic visions. He is a person who established culture in the company, based on teamwork, open communication and high performance expectations (Inditex, 2013).
Throughout the decades Inditex has retained strong management and clear strategic direction. The company managed to set and maintain the tasks between the main stakeholders from the early days.
Excellent managerial, technical and financial skills of Intex management enabled the company to create significant amount of cash flow and expand international (Inditex, 2013).
Inditex created and implemented policies that are in line with fundamental labour standards and environmental protection. It was the first Spanish company to sign for Global Compact program that promotes social dialog and reconcile corporate interests with values and demands of civil society (Inditex, 2013)
Vertical integration
Inditex has a distinctive supply chain model. More than 50% of its production is carried out in areas, close to the head offices and logistic centres in Spain. Bigger labour expenses, but smaller transport costs (Gnemawat & Nueno, p.6, 2006). In order to create a quicker response to changes in fashion trends and overcome uncertainties of fashion trends, the company adapted the vertical integration strategy.
Benefits of vertical integration:
Control of
References: 1. Forbes, (2013), the strategic retail genius behind Zara; online[online]available: http://www.forbes.com/sites/lydiadishman/2013/03/23the-strategic-retail-genius-behind-zara [accessed 04 December 2013]. 2. Gramawat, P., Nueno, L., L., (2006), Zara: Fast Fashion; SCM CW_BRSCM_H Y5;MGMT H5ROI; unpublished 3. Johnson G, Whittington R, Scholes K, 2011, Exploring Strategy, Pearson Education, Ninth edition 4. Inditex, (2013), Annual reports, online available: http://www.inditex.com./en/shareholders-and-investoes/investor-relations/annual-reports [accessed 04 December 2013].