ZARA
CASE STUDY
Group C: Lưu Ngọc Huế
Phan Thị Ánh Nguyệt
Nguyễn Lam Phúc
Nguyễn Thị Phương Thảo
Trần Thị Cẩm Tú
Instructor: Phan Hoang Long, Ph.D
INDITEX’S CORPORATE STRATEGY
Product diversification Vertical integration
Supply chain with in-house design and production
Centralized distribution in Spain ensures rapid
delivery and quick response to market trends
Geographical diversification Outsource
Inditex has expanded globally Low costs from outsourcing assembly
with more than 7,400 stores and taking advantage of
in more than 202 markets cheap local labor in Asia
ZARA COMPETITIVE STRATEGY
Hybrid Strategy Focus
Cost Leadership Differentiation
Zara balances Concept of “fast fashion”: People who want to
quality and prices Shorter lead times update fashion
Lower quantities quickly and in style
Accessible to a wide More styles
range of customers
ZARA’S RESOURCES
Financial
Reputation
from holding company Inditex
Ranked 29th in Interbrand's list
Physical of best global brands (2019)
2,264 stores in major cities in 96 countries Famous fast-fashion brand
Factories & procurement center
Distribution centers Human resources
Technology Talented designer
Radio Frequency Identification Technology Store staff & manager
(RFID) Creative team
ZARA’S CORE COMPETENCIES
Corporate functions
R&D
Multidivisional coordination
Research changes & developments of fashion
Management Information everyday in the world
Database at the headquarters Design
Standardize product information Turn latest trends into products &
edit existing products in just a few weeks
Marketing
Based on prominent store locations
Sales & Distribution
“ window display”
Listen & take notes of customer comments
Production & response to designers,suppliers
Process fabric to provide for new styles Ship products 24 hours/day, 365 days/year
Production schedule to produce 1000
new models/month
BUSINESS MODEL CANVAS
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Fashion-conscious
Manufacturers Information management Direct in-store adults
Holding Company (Inditex) Product design interaction Trend-seeking youth
Technology partners Supply chain management Personalized Digital Value-oriented
Material Suppliers Sales Experience shoppers
Landlord Fast fashion Impulse buyers
Affordable luxury
Fashionable clothes
Uniqueness and limited
Key Resources Channels
Brand reputation Human Resources
Physical stores
Procurement & factories Technology
Online stores
Distribution center Customer data systems
Global store network
Cost Structure Revenue Streams
Manufacturing and distribution costs
Retail sales
Operating expenses (facility maintenance, employee wages, legal fees,..)
Research and development costs
Online sales
Technology investment costs
STRATEGIES TO STAY COMPETITIVE
Investment in Technology Social Media Presence Loyalty Program
Online and Offline Integration Building a Brand Story Customer Survey
MOBILE COMMUNICATION CUSTOMER
COMMERCE & PROMOTION RELATIONSHIP
THANK YOU
FOR ATTENTION
Group C
International Strategy
Inditex's Transnational Strategy
Global Integration:
Centralized design and production in Spain
Integrated logistics with centralized
distribution centers for rapid global transport.
Entry Modes: Wholly owned subsidiaries.
Full control over operations, consistent standards, brand protection.
Integrated global network, efficient distribution with centers in Spain (48-hour delivery).
Strategy Direction
Inditex mainly pursues a market development
strategy in most of its strategic activities:
Market Development
Inditex is continuously expanding into new
international markets, especially developing
markets.
It is strengthening its presence in high-
potential regions.
The development of new stores and online
growth boost customer reach and global sales.
