Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 11 pages
Data source: Published sources
Topics:
Apparel and accessories retail industry; Growth and diversification strategies; Vertical integration; Just-in-time inventory control; Information technology (IT); Zara as flagship store for the Inditex group; Supply chain management; Outsourcing of manufacturing to Asian countries; Concept of in-house manufacturing; 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
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Abstract
Industria de Diseno 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. The case takes a glance at the methods of outsourcing of garment manufacturing vis-a-vis in-house manufacturing, and the importance of the latter in the fashion industry. It also focuses on the risks for any retailer while expanding into too many foreign markets. A structured assignment ''305-188-4'' is available to accompany this case.
About
Abstract
Industria de Diseno 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. The case takes a glance at the methods of outsourcing of garment manufacturing vis-a-vis in-house manufacturing, and the importance of the latter in the fashion industry. It also focuses on the risks for any retailer while expanding into too many foreign markets. A structured assignment ''305-188-4'' is available to accompany this case.