Case study Essay Example | Topics and Well Written Essays - 500 words - 46

Case study - Essay Example hains under the umbrella of Inditex are involved in various business industries such as manufacturing, textile, real estate, and finance among others (Ghemawat and Nueno 7). Despite being under the same umbrella of Inditex, each chain operates independently, a factor that has contributed to Zara’s massive success in comparison to the other chains. With an expansion strategy from the firm’s founder, Amancio Ortega Ganoa, Zara has been able to open new stores in the past years with the first opened in upmarket shopping street in La Coruna, in 1975, in Spain, Zara’s home base (7). Expansion has however, seen it go international with other store being opened beyond the Spanish boundaries from which it has been able to expand substantively especially in logistics and IT (9). Zara has been able to beat its competitors in the market by making customer preference their priority, enabling for the production of distinctive products that meet the customers’ needs. In a strategy named ‘vertical integration,’ Zara observes the current trends in the fashion industry and works towards production of products that are considered the next trend in the fashion industry. Ideally, this has been the greatest success orientation for Zara. In addition to expansive marketing, Inditex, as an umbrella organization through its supply chains including Zara, has established effective and able management team that run each of the chains with utmost objective in achieving success (6). This aspect has as well contributed immensely towards the overall success of Inditex and its chain units. Despite the success orientation that Inditex has been to experience in the past years, difficult times are looming in the new future for this firm considering that a majority of the stores under it are working on expansive strategies that would see them acquire new market bases. This could be disastrous to Inditex considering that each of the chains operates on an independent basis. Other than the