Preview

Structure Inditex

Good Essays
Open Document
Open Document
628 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Structure Inditex
Inditex
In 1963, Amancio Ortega opened for business enterprise manufacturing ladies' gowns in a small workshop in A Coruña, since then its progress has been remarkable. Today, Inditex (Industria de Diseño Textil, SA) has become an international fashion retail composed of six business units: Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius and Oysho. Its organizational structure consists of several departments, corporate headquarters, the six business units mentioned above and a number of areas of support or functions shared by all business units. Corporate departments take on functions of a strategic nature or because of the convenience to take advantage of certain economies of scale. These include strategic management, legal and tax advice, financial policy, human resources or corporate communications. The chains of the group or business units have separate management teams and headquarters of Inditex, different activities (major) and autonomy in managing the business. Finally, among the areas of support or functions shared by all business units, we must stress the real estate department, which is responsible of the location and negotiation of the most suitable for the location of outlets or department Logistics, which handles the receipt, storage and distribution to stores garments produced. Figure 1 shows the flowchart of the Inditex group described above. This organizational structure has succeeded in developing a chain of design and manufacture flexible and efficient.

It is capable of bringing new products to the market every week and the process from the design of a new product to be sold only ranges between twenty and thirty days. In addition, the support areas (department of real estate, logistics, etc.) avoid duplication and waste of resources, eliminating, or at least attenuating, one of the drawbacks typical of divisional structures. It can be concluded that the group Inditex has managed to understand the behavior of demand in their

You May Also Find These Documents Helpful

  • Powerful Essays

    Macy's Financial Analysis

    • 2670 Words
    • 11 Pages

    The Company’s retail stores and Internet websites sell a variety of different merchandise which includes men’s, women’s and children’s apparel, accessories, cosmetics, home furnishings and other goods. The merchandise varies by size of store, known as “merchandising character” and “character of customers in the trade areas”.…

    • 2670 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    The customer segment for this company are people between 18-35 who love sport, nature, eco-friendly products and probably their willingness-to-pay more money is high, because of the high-quality of the clothes. Besides, the company always invested in innovations that benefits customers and make their satisfaction much higher. Distribution channels of this company are: large department stores, its Web site, catalog and wholesale business. As to consider internal consistency, the company’s goal is to use resources such as organic cotton and recycling in such technological way, so that it could cause no harm for the environment. In reality, these techniques bring the company more attraction and therefore more earnings. The other goal of the company is the simplicity. In spite of the fact that the company is private and can play like other businesses, it has minimum bureaucracy and even gives huge donations every year.…

    • 1872 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    zara case study

    • 670 Words
    • 3 Pages

    Zara has a highly flexible tool for producing close to its customers and an efficient and quick chain information system. Zara designers are constantly listening to advice and comments from store managers. During their regular contact, the store managers give suggestions, advice and criticisms on products and on the choice that should be taken thanks to the retail experiences with customers. .It allows to Zara to be the first company to offer the new fashion garments, Zara create a sort of rareness. To control his production, Zara produces a lot in Spain with exclusive suppliers, it give to Zara a great reactivity and a good control.…

    • 670 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Case Study

    • 531 Words
    • 3 Pages

    It is important to realize the manner in which other competitor’s of Inditex, SA are operating. As the economic criteria for promoting an established discipline in the desired sectors, the most common act to follow is retreat. But as those firms hold back or constrain their efforts to accompany short term financial parameters, I believe that many experienced capitalists will retrieve heightened gains with several uncommon practices to boost capital. First, as mentioned in the article, the firm plans on expanding the number of stores that they now operate in many different countries. This is the most respected, in my opinion, because costs are much lower in such economies, meaning that as others are closing stores and laying off personnel, there is a grand opportunity to enlarge production and develop more progressive features for attracting customers. The price of material and labor are at an all time low, since the early part of the twentieth century, so it only makes sense to move forward in this area.…

    • 531 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Strategic Management

    • 251 Words
    • 2 Pages

    Even though one might believe that the system used by Benetton and such other collections such as GAP is superior due to the lower labor costs by the outsourcing to other countries and other reasons, in reality the process used by Inditex, the worlds third largest clothing retailer, to produce the Zara brand is much better because even with higher labor costs, transportation and shipping involve in the manufacturing process and shipping finished product to stores, costs are still lower and the product is in one place for production. Thus Inditex has greater responsiveness and flexibility. Inditex uses a network of several smaller manufacturing companies that provide needed materials and provide more flexibility. In addition, Inditex owns all its own shops and is not operated in retail franchises that are owned by third parties. This extra “hands on” approach allows Inditex to have a lot more control over both production and sell of product and allows them to have more direct consumer contact to improve their product or know what the consumer wants. By combining high fashion, rapid response to sales feedback, and low costs—giving the consumer low pricing, Inditex definitely has the superior…

    • 251 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Bibliography: Andrew, M., Vincent, D., & Anders, S. (2004, 12 17). Zara: IT for fast fashion. Craig, A., Jones, C., & Nieto, M. (2004, April 2). ZARA: Fashion Follower, Industry Leader. Business of Fashion Case Study Competition . Ghemawat, P., & Nueno, J. L. (2003, April 1). Zara: Fast fashion. (2008). Inditex Annual Report. Render, B., & Heizer, J. (2005). Operations Management (8th ed.). Pentrice Hall. Shingo, S. (1989). A study of the Toyota Production Syste. Productivity Press , 187. Zara s Business Model. (2010). Retrieved April 17, 2010, from 123helpme: http://www.123HelpMe.com/view.asp?id=97642…

    • 1968 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Inditex Group

    • 2106 Words
    • 9 Pages

    Select a Global Business Organization and describe its development from inception through to its present status as a global trader.…

    • 2106 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    The key issues that affect the Luen Thai, Polo Ralph Lauren, and Ruentex, are already common problems within the apparel industry dynamics. In the industry, the idea of collaborated end to end management of the supply chain was more of a theory than what was actually being done. Supply chains had been designed for mass manufacturing. Business processes sometimes operated in silos and had very limited technology that did not allow for very effective communication. The information apparel companies gathered was old and caused for decision making to be made on past information. This resulted in low service orientation and lack of customer management throughout the industry. Many of these problems are found in Luen Thai, Polo Ralph Lauren, and Ruentex.…

    • 681 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Inditex ensure “fast fashion” is truly fast is logistics. Inditex makes two-thirds of its goods in Spain and nearby countries such as Portugal, Morocco and Turkey. The higher labor costs are offset by the flexibility of having production close to its warehouses and distribution centers, which are all in Spain. This saves on transportation with faster delivery times. The CEO Pablo Isla also installed a system that monitors sales and ordering merchandise. Stores often restock as often as twice a week. Store managers also use new hand-held computers that show how garments rank by sales, so clerks can re-order bestsellers in less than an hour. This process previously took about three hours. These orders arrive, together with new pieces, two days later. The company has added new shipping routes to ensure managers get their merchandise quickly. New fashions arrive at the stores a lot quicker than their competitors. The company is also expanding quickly. Mr. Isla is attempting one of the fastest global expansions the fashion world has ever seen, opening hundreds of new stores and entering new markets.…

    • 824 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Zara Customer Care

    • 3322 Words
    • 14 Pages

    This report is about ZARA which is a global brand of clothing owned by the Inditex Group. It is the world's third-clothing retailer, one of the world's four major fashion chain (the other three are the United States of casual fashion giant GAP, the Swedish fashion giant H & M, German parity giant clothing chain C & A), has more than 2,000 stores in 70 countries around the world. It was established in 1975 by Spanish fashion designer and tycoon Amancio Ortega. The first store opened in Galicia, Spain, where it is now headquartered. The company is very unusual in the fashion retail world and incorporates many pioneering concepts. The company takes just two weeks to get its products on its store shelves after designing them, compared with six months for its competitors. It does not advertise, preferring instead to use money on opening new stores. Zara also owns and controls every stage of production from design, manufacture, supply and sales. A Louis Vuitton spokesperson described it as “possibly the most innovative and devastating retailer in the world”. (Baidu.com 22, June, 2012)…

    • 3322 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    The department stores are located in large urban centers, as Madrid, Barcelona, Seville, Bilbao and now in Lisbon. Their space is designed like a Shopping center with a great variety of products and services, distributed in a large, fashion and comfortable dimension (more than 2.500m2) with 2 or more floors and escalators, to satisfy the customer.…

    • 815 Words
    • 4 Pages
    Good Essays
  • Best Essays

    zara case study

    • 3196 Words
    • 21 Pages

    Zara is a part) is headquartered in La Coruña, northwest Spain, where the first Zara store opened in 1975.…

    • 3196 Words
    • 21 Pages
    Best Essays
  • Powerful Essays

    Inditex

    • 2539 Words
    • 13 Pages

    At the beginning of every successful business is a vision, strategy , mission and values . Inditex he created a unique business model in the world that is characterized by speed, innovation and flexibility. What started as a small store, has become he No. 1 textile retailing worldwide. Inditex , with its particular business model has revolutionized the fashion world , directing his whole value chain to the customer. The client no longer closes the value chain but the conditions.…

    • 2539 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    Mango Supply Chain

    • 1270 Words
    • 6 Pages

    Marcel Planellas, secretary general of the Esade business school, describes the Mango fashion retail chain, as “gazelle-like,” because it has grown so quickly. The fashion retail chain opened its doors in 1984 when two brothers, Isaac and Nahman Andic launched the first Mango store in Barcelona. Less than 25 years later, there are 1,114 Mango stores on the leading shopping streets of big cities in more than 90 countries. It is now, according to Planellas, “one of the most valuable retail brands in the world.” Interbrand, the international consulting firm. Says that Mango’s revenues amount to about 700 million euros. Esade has developed a case study of Mango, recently published in Expomanagement, the largest managerial forum of Spain’s HSM management training firm.…

    • 1270 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Mit- Zara

    • 483 Words
    • 2 Pages

    This case principally discusses concerning Zara, the major procession of provisions of Inditex and the predicament its Information Technology (IT) section is sensing on improving its Point-of-Sale (POS) workstations. In 1975, Zara was originated by Amancio Ortega. During 1985, Inditex was shaped as an investment business atop Zara, erstwhile retail trading handcuffs and a system of on the inside possessed traders. Castellano who served as an IT Manager, get connected with this firm in the same year and became the CEO of Inditex in 1997.…

    • 483 Words
    • 2 Pages
    Good Essays

Related Topics