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Zara Solve Case Study

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Introduction to Zara (Inditex) Case Study In 1975, Amancio Ortega started a fashion retail shop that makes the fashionable clothes faster and beauty than other competitors. The first Zara store opened in 1975 in Spain. The very best quality of Zara was, it only takes two weeks to develop a new cloth/product and release it to the market while other competitors take two months. Zara didn’t get third party help to distribute, design or even produce because Zara did them alone. Zara was fashion focused producers that makes new clothes, apparels according to the trending fashion. Zara uses its own strategic method which is done by sending some employees to higher level venues, occasions, functions, clubs etc.Then the collected new designs and patterns will be forwarded to the headquarters. Although Store managers are used to report feedback, new demands that is given by the customers. These methods will help Zara to be the top among their industrial competitors. Although this method will helps Zara to manufacture more products than others, like 30,000 products annually while others are doing 10,000. Another unique quality of Zara is they don’t keep products that doesn’t sell for around 4 weeks and this trick make customers to come and see regularly on Zara stores that “What’s new?” With the development process of Zara become more and more popular and powerful on its industrial market. Hence Zara decided to enter the market with various brands. They were categorized into some societies.
• 1975 – Zara – Fast fashion clothing – Ages between 0-45.
• 1991 – Pull & Bear – Casual clothes – Ages between 13-23
• 1991 – Massimo Dutti – Quality Fashions – Ages between 25-45
• 1998 – Bershka – Avant-grade clothing – Ages between 13-23
• 1999 – Stradivarius - Trendy clothes – Ages between 15-25
• 2001 – Oysho – Lingerie – Youths(Women)
• 2003 – Zara home - household clothing – Any
• 2008 – Uterqüe – Accessories – Ages between 15-45
Likewise Zara made a huge market on apparels with these various brands which are owned by itself.
All of these brands were made in locally and served to the international market. But Zara needs to enter to the international market more than ever because of globalization etc.

1. Which theory is the best representative of Zara’s (Inditex’s) internationalization?

2. 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?…...

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