Zara Case

Zara Case

Order Details

Zara is the largest and most famous fashion brand and the pride of its 2.5 billion pounds parent company Inditex. Amancio Ortea Gaona founded the company as a garment retailer in 1963. By 2005, Inditex had over 2000 stores and is now working to double the number of stores by 2011. Since its inception, Zara has grown from strength to strength and has been posting profits in the hundreds of millions. Since 2001, stock prices of Zara have been continuously over-subscribed and as of 2002, Zara’s market value was 13.4 billion Euros. It is calculated that 76% of the equity value of the stock price of Inditex is based on the continued growth of Zara, which exceeds most high-performing retailers. This paper compares Zara with its leading competitors and big names in the apparel trade: The companies are: The Gap from the United States, Hennes & Mauritz from Sweden and Benetton, the largest apparel retailer in Italy. The paper concentrates on Zara and the international expansion of the Zara Chain. The expansion is all the more unique because today’s generation tends to spend more money on electronic items, on healthcare, education, travel and leisure and less on clothes. To attract consumers, it is imperative to achieve a breakthrough and do things differently.

Pre-Written Pages: 12

 

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