Value Chain Analysis Case Study

Inditex: The Spanish Retailer's Growth Strategies

OR

Abstract:
Industria de Diseño Textil, SA (Inditex), Spain's largest listed retailer of textiles and footwear has chalked out a five-year plan for doubling its size by 2010. The success of Inditex lies in its unique business model, which consists of a complete centralisation and vertical integration of its manufacturing and distribution processes, coupled with state-of-the-art information technology

Pedagogical Objectives:

• To highlight the contribution of the IIMs to management education in India
• To highlight the merits of outsourcing of garment manufacturing vis-à-vis in-house manufacturing
• To discuss the importance of in house manufacturing in the fashion industry
• To highlight the risks for any retailer while expanding into too many foreign markets.

Keywords : Apparel and accessories retail industry; Growth and diversification strategies; Vertical integration; Just-in-time inventory control; Information technology; Zara as flagship store for the Inditex group; Supply chain management; Outsourcing of manufacturing to Asian countries; Concept of in-house manufacturing; Growth Strategies Case Study; Hennes & Mauritz; Competition in the global retail industry; Centralisation of Inditex’s business processes; ‘Fast fashions’ business model of Inditex; Distribution system and logistics of Inditex; Segmentation as a business strategy

Contents:

• Inditex: A Success Story
• 'Fast Fashion': A Unique Business Model
• Growth Strategies
• Future Outlook