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Zara Case - Essay Example

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Undergraduate
Essay
Management
Pages 7 (1757 words)

Summary

Zara is a company that was founded by Amancio Ortega who by the year 2003, was rated as the largest shareholder and the richest man in Spain. Zara is the largest clothing company of the Spanish Inditex Group. With time, the company founder came to realize that manufacturing and retail needed to be closely associated with apparel industry where the demand of the consumer was very hard to predict or forecast…

Extract of sample
Zara Case

This realization made him open the first Zara store in La Coruna in 1975 (The economist, 2001). With time, Zara Company decided to manufacture clothes for men, women, children and sportswear. In this expansion move, the company concentrated on women’s fashion clothes. The company expanded rapidly in the fashion and industry in 1980s in Spain. This expansion made the Zara group think internationally by opening stores in Portugal in 1988, USA in 1989, Sweden in 1994, Milan 2001 and Mexico in 1994 (The Economist, 2001). Zara’s competitors in the fashion and industry were amazed at how the company was rapidly expanding both locally and internationally. It is important to note that all these stores were opened under the company’s brand but when the ventured into the Asian market, the company’s managers had different views of the market in that they decided to exercise the concept of Franchising. For instance, in Malaysia, Kuwait and Saudi Arabia, the company operates as B2B Company. Zara did virtually no advertising unlike its international clothing competitor such as Gap, Benetton and H&M. ...
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