The company that is going to be analyse in this essay is Inditex and particularly Zara‚ its main brand. Inditex Group is a textile company‚ the most important in the Spanish textile sector and one of the most important multinational and one of the most weighty multinationals in Spain. A Multinational Corporation can be defined as enterprises which own or control production or service facilities outside the country in which they are based (definition by the UN; Czinkota‚ 1992; page 298). Inditex
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Internal analysis 3 The Value Chain 3 SMS-model 4 External analysis 4 PEST 4 Porter’s Five Forces 5 Competitor analysis 5 SWOT analysis 6 Conclusion 6 Literature 7 Enclosures 10 Enclosure 1 10 Introduction In 2009 H&M and Zara were accused of using child labour (www.ilo.org). Even though H&M is a huge company the scandal damaged the reputation of H&M and without the right recovering strategy the damages might have been fatal. Since the scandal H&M has worked
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apparel Similarities and differences: The fashion industry recognizes local designers for producing the major fashion apparels which is different from the case of Zara that operates on a global level. However the industry is aware of the major players around the globe of which Zara is one. The industry is government aided while Zara is privately funded. Many of the organizations in the fashion industry are also supported through corporations and
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implication of Gateway’s decision to offer fewer configurations ? Zara : Apparel Manufacturing and Retail 1. What advantage does Zara gain against the competition by having a very responsive supply chain ? 2. Why has Inditex chosen to have both in-house manufacturing and outsourced manufacturing ? Why has Inditex maintained manufacturing capacity in Europe even though manufacturing in Asia is much cheaper ? 3. Why does Zara source products with
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Street Ozone Park‚ NY‚ 11417 (718) 213-28616 alexis.yecora@me.com February 26‚ 2013 Mrs. Lilly O’Connor Customer Service Manager Zara Corporate Office Headquarters 500 Fifth Avenue‚ Suite 400 New York‚ NY‚ 10110 Dear Mrs. O’Connor: Please credit my Visa account to correct an invalid charge of $291.73. On February 18‚ 2013‚ I bought through your Zara USA website two of the woman shoes. I purchased in size 6 both the Electric Blue wedge sneakers and the brown Studded Strappy sandals
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Zara also boasts impressive financial figures. Profits at Inditex SA‚ the owner of the Zara retail chain‚ have jumped 64% in the first quarter of 2010‚ while the company’s stock has risen 43% in the past 12 months. Zara‚ now present in 77 countries‚ also recently launched online operations in 85 countries encouraged by the two million people who have downloaded Zara’s smartphone application in the first six months after its launch (Bjork 2010). 5 flexibility princeples on which zara
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the apparel industry? What it means for a company like Zara? Traditionally‚ national retailers outsource apparel production‚ via global brokers‚ to thousands of small apparel makers. Globalization created options for countries and companies in the apparel industry. Improving technology‚ sourcing‚ and production systems let innovative apparel makers compress cycle time. Shortening process time increases efficiencies and boosts profits. Zara applied its innovative strategy to reset the standards
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Co-operation Contracts of employment An employment contract is a written legal document that lays out binding terms and conditions of employment between an employee and an employer. The employers in ZARA need to makw sure that their employees are aware of what rights and responsibilities they have as workers in ZARA. This contract also includes: The salary rate that is going to be paid to the employees. When they will be getting their salaries What deductions are going to be made from their salaries
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different companies” (Riddalls et Al.‚ 2000) For this essay I have chosen two very different companies; Zara‚ a Spanish fashion collection manufacturing company‚ and Dell‚ American multinational information technologic corporation. Some years ago‚ in the fashion industry there was a relationship between price and quality. For high quality brands‚ there was a need to spend a high amount of money. Zara was one of the first companies that changed this assumption by introducing good quality clothes at a
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is therefore imperative for Zara to understand the external environment in order to maintain its dominance. Although Zara’s value chain is difficult to copy‚ Zara must continually look out for new threats and opportunities‚ and be prepared to instantly move on them with new strategies and state of the-art- technologies. Competitive Environment: Zara’s principal key issue is rivalry in the apparel retailing market‚ mainly from GAP and H&M. Swedish H&M differs from Zara because they outsource all
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