Once you have read, answer the following parts in details. Read the Continued Gr

Question

Once you have read, answer the following parts in details.

Read the Continued Growth for Zara and Inditex Case study above and answer the following parts below in details

: 1.Statement of the Problems

2.Definition of Key Players and an Explanation of Why They are Key

3.Decision(s) that are required to be Made; (Key Factual Support)

4.Alternatives Considered; (Key Factual Support)

5.Recommendations; (Key Factual Support)

6.The Characteristics- Problem(s) and/or Decisions -of the Case that affects specific international marketing concepts

CIRCA 2008 chains has zoomed, Zara's rivals Hennes&Mauritz; AB of Sweden and Mango of Spain have also become fxtures on U.S shoppling ARTELXO, Spain-Zara stores have set the pace for retailers around the world in making and shipping trendy dlothing. Now streets. In addition to Zara, which makes up 60 pencent of ts business, Pablo Isa, chief executive of parent company Inditex SA, says Inditex owns seven smaller store beands, including the more up- Zara needs to speed up. As rivals catch up, Mr. Isla is attempting sca Massimo Duti and the youth-oriented Bershka. In the last 12 one of the fastest global expansions the fashion world has ever mths Inditex added 560 stores, including entering new markets seen, opening hundreds of new stores and entering sew markets. in Croatia, Coombia, Guatemala, and Oman, to reach 3,691 stores To do that, as an economic downturn threatens sales, Inditex in 68countries t plans expansion of a gdscope ayer the net changing the systems that have driven its success at Zara and its other store brands, to save time and money. Among the innoa- year The first Zara stoe opened in 1975 in La Corula, a poet tions, it is introducing new methods to enable store managers to own near Arteso in a remote corner of northern Spain. Its two order and display merchandise faster and addingcargo routes for key traits were an eye for customer tastes and a peoduction pro- shipping goods. "There has been a dlear change of mentality in cess that started with the final price and worked backward to thie the company,Mr. Isla, a former tobacco executive who arrived -efficient production. In the mid-1980s, local business-school at Inditex in 2005, said in an interview at the company's head- professor losé Maria Castellano, a technophile, joined Inditex as right-handman to founder Amancio Ortega Gaona, and the comm- pany became aworld-class logistical outfit, peddling ast fashion Inc Inditex is responding to a predicament shared by other cThe first foreign store, in Portugal opened in 1989, followed by panies that come up with game-changing formulas Eventually New York. In 2001, ME Ortega took Indnex public and its stores quarters here. The wold's second largest clothing retailer by sales after Gap competitors catch up, foecing the pioneers to do even better toare ow on prime shopping streets around the woeld. keep their edge Low-cost carrier Southwest Airlines Co. is maling Stores are stocked with new designs twice a week. Collections big changes to fend off rivas that have copied ts efficient operat-aresmall and often sellout, ceating an air of excdusivity and cut ing model. Inventory-control methods at Walmart Stores Inc. eingdown on the need for markdowns. The company ships clothes being mimicked around the world, and Google Inc. is updating its straight from the factory to stores Unlike competitors who manu- facture most of their wares in Asia, Inditex makes two-thirds of its The consumer slowdown is adding pressure. Indnex sharesgoods in Spain and nearby countries such as Portugal, Morocco have fallen nearly 24 percent in the lst 12 moeths, in large part and Turkey. The retailer says the higher labor costs are ofiset by the because investors are worried about an economic downturn in flexibility of having production close to its warehouses and distri- search engine to keep users loyal Spain, where Inditex generates over a third of its S12 bilion in bution centers, which are all in Spain annual sales. The company is pressing ahead with its expansion At "the Cube, as employees call their futuristic-looking plans even as coesumers are slowing down. In the U.s, retalers headquarters outside La Coruta, sales managers sit at a long had their worst monthly sales results in nearly five years in Ja of computers, monitoring sales at every store around the ary, and some chains are planning to close stores and cut jobs. LLK weld. When a garment sells well-or flops-they quickly tel retailer Marks &Spencer; PLC recendly repoeted its worst qarterly designers sitting nearby to whip up fresh desigas. In the base- sales performance in two years, and warned the pain could extendment stylists decide store lhyouts and window displays. One room is built like a shopping street, its walls lined with lit and The industry is watching the company's logistical makeove decorated store windows that dictate how storefronts will look Though it sells inexpensive trendy clothingiast fashioefrom New York's Fifth Avenue to Loodoo's Regent Street Every industry parlance-Zara has been so succesfl in uring high two weeks, new decorations are photographed and e-mailed to paying customers that luxury fashion brands such as Gucci, st Burbenry, and Louis Vuitton have overhauled their own prac- to replicate. To speed up new store openings, Mr. Isa needed to cut start- tices to send new fashioes to stores more frequently. "They're up costs. Inditex now avoids store openings in slow months such they manage to get peouctas August In the past, stores opened year-ound, accruing costs to their stores so fast. Stacey Cartwright, chief financial officerfrom the first day even if sales took longer to build. M. Islas goal of Burbery Group PLC, says of Zar "We are mindful of their for Inditex is to reverse a trend of costs growing faster than sales. It met that target in the first half ended July 31, 2007, when costs In recent years, competitors across the globe have adopted grew 16 percent over the same period the previous year, while sales fantastic case study in terms of how get peoduct aras methods Italy's Benetton Group SpA ow replenishes increased 19 percent. stores up to once a week. Los Angeles-based Forever 21 Inc. and In another move to cut costs, Mr. Isla installed software lin lapanese apparel giant Fast Retaling Ca, owner of the Unigl store computers to schedule staff based on sales volume at differ- chain, can get new looks to their stores within six weeks. Even ent times. As a result, more salespeople work at peak times such outdoor clothing maker Patagonia Inc. has doubled the number of as lunchtime or the early evening Inditex says the moee flexible percent off the hours staff work. Alarm tags new styles it offers every year. As the popularity of cheap-and-chic schedules shaved 2

Explanation / Answer

Statement of the Problems

Inditex needs to better its’ own standards in new designs, cost efficiency and quick design to store turnaround to remain ahead of the catch up played by others.

Definition of Key Players and an Explanation of Why They are Key

Key players refer to the industry leaders and they are called key as they are known for

Decision(s) that are required to be Made

Inditex needs to decide

Alternatives Considered

Recommendations

We recommend Inditex to deeply analyze the nuances of the new markets as the current strategy has worked fine for them till now, but any misses in the same would lead to catastrophic results. There have been examples in the past where businesses stuck to their current product line, supply chain, pricing just because it worked in one market but eventually failed in other markets and even lead to the firm going belly up.

Every market and the customer are different and hence the strategy needs to be customized to fit in in each of the markets.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.