Value Chain Analysis Case Study

Zara, the Spanish Fashion Chain’s Global Expansion : Is It Moving too Fast?

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Abstract:
The dynamics of the fashion industry require the players to adopt a particular business philosophy. More or less all the big and sizeable players have adopted the similar business principles; be it supply chain management, designing or retailing. Zara, the fastest growing fashion retail chain in the world, has rapidly grown over the years by adopting unique competitive strategies to emerge as a successful player in the fashion industry. With the objective of globally and rapidly expanding its stores’ network, Zara chalked out a plan in 2005. According to the plan, the company intends to establish an outlet every day anywhere in the world. However, Zara’s rapid expansion plan is being questioned for several reasons.

Pedagogical Objectives:

• To understand the dynamics of the global fashion retailing industry
• To discuss the evolution of Zara into the fastest growing fashion retail chain in the world
• To understand the unique competitive strategies adopted by Zara
• To analyse and discuss the global expansion plan of the fashion retailer
• To debate whether Zara’s rapid global expansion will have a negative impact on its performance in future.

Keywords : Inditex Group; Fastest Growing Fashion Retailer; Short Lead Time Strategy; Strategy of Limited Styles; Strategy of Infrequent Shortages; Growth Strategies Case Study; Producing More Style Quantities; Vertical Integration Business Concept; Distinctive Operational Structure; Strategy of Zero Advertising; Pricing Strategy; Gap Inc.; Hennes & Mauritz AB; Global Expansion Strategies; Location Identification Strategy; Zara Home

Contents:

• Zara - World's Fastest Growing Fashion Retailer
• The Competitive Scenario
• Zara - Global Expansion Strategies