"Management und Leadership"

  • Fachrichtung:Wirtschaftswissenschaft
  • Studienfach:Management
  • Thema:
    Management und Leadership
  • Art der Arbeit:Hausarbeit
  • Seitenzahl:1
  • Einzigartigkeit:98.8%
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Zara is an Inditex’s flagship retail format, generated 66 % of the company’s overall sales in 2016. H & M, Benetton and GAP are the main competitors of the group, with the competitive advantage of Inditex is its unique business model, which allows the group to monitor the whole process from production of inexpensive, fashionable, with a rapidly changing assortment of clothing, to its sales in the networks, so making the group a pioneer of “fast fashion.”

Inditex Group is a vertically integrated company with production facilities in Spain, Portugal and Morocco. Thus, despite the fact of more manufacturing costs (as compared with production in China), a nearby production creates a faster supply chain, and in this particular industry (fashion) is a key factor. While the Gap, H & M, Benetton and the industry spend from 3.5 to 5.4 percent of revenues on advertising, Inditex only spends 0.3%[1]. Instead, Inditex primary relies on storefronts in chic locations and lets this strategy do the signaling to customers, supporting a high-end image despite the lower price.

The aim of this work is to develop the basic components for Zara’s management leadership. Thus, the author believes, that Zara has the following objectives such as continued global expansion and continued online retail expansion and development. Inditex growth forecasts for the most realistic estimated 6 % to 9 % over the next ten years, focusing on Asia, Eastern Europe and Latin America. Inditex has doubled its number of stores from 3,000 to 6,009. Since 2007, as well as expanding a space of its stores from 8 % to 10 % per year. Inditex is an unique company since it has no advertising budget. Sales are also made through the global deployment of online stores and Zara is the best known online concept, which currently has more than 1.3 million visitors per day[2].

[1]            Crofton, Stephanie, and Luis Dopico. Zara-Inditex and the Growth of Fast Fashion. High Point Univ. Print. 2016.

[2]            An Introductory Guide. Morgan Stanley, Print. Feb. 4, 2017.

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