Clothing three continents: The competitive advantage of Inditex-Zara group, 1963-1 999
Abstract
The paper is divided into four sections. The first one places Inditex holding in the Spanish clothing entrepreneurial context. In the second, the history of the group between 1963 and 1999 is constructed. Afterwards, some financial and commercial ratios are offered. This will enable us to compare the levels of competitiveness among big-sized firms in the sector; which places Inditex in the third position of the global ranking. Finally, the factors that brought about its rapid international expansion in the 90s are analyzed. Amongst these factors, we must underline a very flexible production (mostly guaranteed by the just in time system and a significant vertical integration), the real-time knowledge of consumer behaviour; which leads to a diversified supply, and finally, a particular customer loyalty through heterodox and low-cost marketing systems.
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