Zara case study


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Project done at Aalborg University ( Denmark ). Topics discussed: Value Chain; applied Agency Theory; Transaction Cost Economics; Applied VRIO Framework

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Zara case study

  1. 1. Aalborg UniversityBSc Economics and Business Administration 2012 October 24
  2. 2. BSc Economics and Business Administration Mini Project The ZARA Case Study in Economics and The Organisation of Economic Activity The report has been prepared by:Inga Dragunaite ___________________________________Justina Vaidziulyte ___________________________________Kristina Kirilova ___________________________________Aleksandar Varbanov ___________________________________Nebojsa Abadzic ____________________________________ Delivery date: 26-10-2012 Number of words of the report: 5425 2
  3. 3. ContentsIntroduction ..................................................................................................................................... 4Describe the Value Chain of Inditex ............................................................................................... 5From Agency Theory view, describe the incentives structure for the store managers .................... 9From Transaction Costs Economics view, discuss if it makes sense to outsource work to“captive” suppliers. What would be the alternatives, and how do you evaluate them? ................ 12In relation to the fashion sector in Europe, does Inditex posses a competitive advantage? Use theVRIO framework as the basis of your discussion ......................................................................... 16List of sources ................................................................................................................................ 19 3
  4. 4. IntroductionInditex is an eight-brand group of the world’s largest fashion retailers with its headquarterslocated in La Coruna, in Spain. Founder and majority owner of the company is Amancio Ortega,famous Spanish entrepreneur. Chairman and CEO of the company is Pablo Isla Alvarez deTejera. Inditex’s corporate culture is based on close communication between the customers andthe employees. Today company has more than 100.000 employees worldwide.The largest brand of Inditex is Zara, which runs three independent product lines for women, menand children where most of the accent is stressed on women’s garment. Each of the lines ismanaged by separate team which consists of Diression de Tiendas (DTs). DT’s collaborate withcommercials, country managers, HR managers and headquarters. We can freely say that Zara isa pioneer in fast fashion industry. The customer is at the heart of their unique business model,which includes design, production, distribution and sales through their extensive retail network.The Zara case study is an interesting example on how one company can be successful on themarket. The dynamics of the company and its adapting ability show how important is the rightthing regarding market’s needs. Zara is an apparel chain that works differently from traditionalretailers. The main characteristic is the vertically integrated model. Instead of relying fully onoutside partners, the company manages all design, warehousing, distribution, and logistics itself.The products are distributed in small batches. Due to the stylish garment and affordable prices,consumers visit Zara’s stores very often. 4
  5. 5. Describe the Value Chain of InditexValue Chain InditexPrimary Value Chain Activities Inbound Logistics Inditex Group is a vertically integrated group, which controls most of its supply chain. About 50 % of its products are manufactured in Spain, 25% comes from Europe, and the remaining fraction is produced in locations in Asia and Africa1. After that, the whole production is received and warehoused in the logistics centers in Spain before being sent to the stores. It does not matter where they have been produced, the main categorization is happening in Spain. Materials and fabrics are kept in warehouses without exact colors or prints, due to be able to react quickly to market changes. If it turns out that the demand is higher for the particular product, the company is able to react quickly and produce additional items with a particular design or color2. Sometimes, transportation of merchandise is by plane; for example: clothes, which are produced in Asia, have to be transported in logistics centres in Spain, there categorized and again transported to the Asia. Furthermore, many countries have small warehouses where they keep extra or returned goods3. Operations Inditex country offices represent headquarters at the country level, supervising and coordinating the operations of the various Inditex brands4. Zaras headquarter in Spain consists of three spacious halls for each of these centers. There designers work together with market specialists and planners for procurement and production. Also, here designers can quickly check initial drafts with their colleagues and discuss about new styles. Therefore, prototypes can be examined on site. That kind of teams can work very efficiently; discuss about new fashion trends and take decisions within a few hours. Market specialists are intermediaries between designers and store managers, who can1 Notes on Zara case2 Notes on Zara case3 Zara: managing stores for fast fashion4 Zara: managing stores for fast fashion 5
  6. 6. quickly provide feedback to their colleagues in design and procurement. 5 What differs Zara from competitors is more capital intensive industry. Each brand from Inditex Group has his own autonomy. They can quickly react to market requirements, act in a flexible way by making changes without asking permission of third parties. For example, Zara has power on operations, such as dying, labeling and packaging, all other manufacturing processes are made by Inditex employees. Zara has three product lines: one for children, women and men. All product lines go parallel with each other, but in an operational different way. Procurement, sales, design and marketing operations exist for each of these lines; just they are different and separated. Outbound Logistics At the beginning of each season, the whole merchandise is being distributed to the stores, in the quantities decided by the commercials. However, when the production reaches the stores, managers are responsible for the order replenishments. It is their responsibility to decide how many units of each item to order and to do that, they are taking into consideration various data (forecasts of customer demand, how many of that product the store had and already sold and etc.) European stores are receiving their deliveries within 24 hours; in Asia and America receiving deliveries take 40 hours6. Usually deliveries are done by trucks or planes. Each week, stores are receiving about 12,000 units. However, sometimes it happens that they did not receive the whole order, because inventory at the logistics centers are limited.7 Also, there were some improvements in time saving process. In the beginning when the new merchandise was delivered, employees had to put tags on the products before they could reach store shelves, now tags are put by manufactory workers. This improvement puts some value on faster delivery of the production to the customer.5 Notes on Zara case6 Zara: managing stores for fast fashion7 Zara: managing stores for fast fashion 6
  7. 7. Marketing& Sales Zara is using very unique marketing strategy. Due to the fact, that they are not outsourcing their manufacturing, company can quickly respond to the customers demand in fashion trends. Zara’s unique selling proposition is to produce the latest trend products within very short time (few weeks) and at affordable prices. Moreover, products are on the store shelves no longer than one month. People are more or less forced to buy the product, which they like due to the fear that next week it can be sold out. Products, which are not sold out are afterwards discounted. Zara has approximately eighteen percent of unsold merchandise, which is one of the lowest in the industry. Comparing with other similar companies, Zara does not spend much money on promotion. However, it does not mean that the company is doing nothing. Zara thinks that the store windows and the content is the most necessary advertising for them. Last, but not least interesting thing about Zara is that it owns the majority of its stores, but also does joint venturing and franchising in markets which are high risk and culturally distant. Service Zara’s customers are young people, who are usually in a hurry; want to buy quickly something what they like without being bothered. Due to this fact, sales associates are required to help, when they see that customers need help or ask directly for help. Therefore, company is putting more effort in managing products than customers. Also, it is very important to make sure that customers do not wait in long queues. Zara respects customers complain and try to respond as soon as possible.Support Activities Procurement Zara sources fabric, other inputs and finished products from external suppliers who are usually in low cost source markets. After certain designs are chosen for production, material is drawn from stock, cut, manufactured and delivered to company stores around 7
  8. 8. the world. Zara also owns 20 other factories for internal manufacturing that apply just in time.8 Inditex is purchasing raw materials through the company’s regional offices in the UK, China, Holland and other offices based in Europe, Asia and Australia.9 Technology Development Company puts the value on information transfer. The whole Zara’s supply chain is connected through the constant flow of information. Zara developed way how to transfer information easier than before. They invested a lot in IT in the 1990’s before major phase of international expansion. They developed quick response systems in the industry. Company is using PDA (Personal Digital Assistance) in stores, which ensures a quick information flow within the company and creates value for the customers.10 Also, this system helps for the company to find out about new market trends as fast as possible and possibility to react quickly. Human Resource Management All brands of Inditex Group have HR directors, who are supporting the stores on all HR issues, which are not linked to the operations and are organized by the geographical area. HR department is well developed in this company. Company puts a lot of emphasize on training of their employees, so usually sales associates before starting to work have at least one week training. Zara’s product development teams are responsible for attending high fashion fairs and exhibitions to translate the latest trends of the season into their designs. In this type of company hierarchy exists similar to one like the pyramid model. Although thing that is interesting is that store managers have in their work autonomy. The idea is that make them understand the value of freedom and to motivate them and give an opportunity to feel like the owners of their own store. For the Zara Company’s CEO it is very important that there will not be disconnection between the store and headquarters. CEO thinks that the feeling in the store can be transmitted and can make8 Notes on Zara case10 Notes on Zara case 8
  9. 9. huge damage for the entire company, so it is important to make sure that employees are satisfied and motivated to work efficiently.11 Firm Infrastructure Zara developed business model where speed and decentralized decision making was essential. This business practice, in turn, led to shorter lead times and introduction of more fashion styles. The implementation of the information and communications technology helped augment the business processes at Zara. At the heart of infrastructure is the IT technology. The organizational structure supports IT technology. The company’s CEO is Isla T., the “head” of the company. Next to the CEO there are headquarters, which are responsible for coordinating the brands, HR, IT, transportation and real estate. Below the headquarters are “commercials”, which are organized into teams to analyze and interpret the sales figures for around 40 stores in a geographical area. Next to “commercials” are HR directors who are supporting the stores on all HR issues that were not linked to operations and who are organized by geographical area. Each Inditex brand has regional networks of DT, equivalent to regional managers and known internally as DTs, who are responsible for the operations and performance of 15 stores and have to evaluate how those stores are performing. Country managers are also expected to be proactive in social issues. Beside the central management above, each Inditex brand is managing independently, with its own network of stores, logistic centers and production facilities. 1211 Zara: managing stores for fast fashion12 Zara: managing stores for fast fashion 9
  10. 10. From Agency Theory view, describe the incentives structure for the store managersIn today’s world each company is trying to attract the best employees from the market that willgive their best to achieve a company’s goals. The most common problem that can occur is thepossibility that your employees can have lack of motivation to contribute enough. Whereemployer’s goals reach employees incentives? How the employer can motivate his employees inorder to achieve best results? There are plenty of methods that people invented to monitor thework of others and constantly control the process. It could be by direct supervision, cameras or itcould be also by reports regarding financial performance. Is it the best way to monitor the workof your employees all the time to insure yourself that the job is done? Many managers todaydecide that besides the salary, the workers should receive also a percentage of the sales or thewhole salary could be depending on their contribution in the company. Each individual hasdifferent way to measure his own contribution and the contribution of the people around him. Ifwe look at Zara’s store managers what will be their motive to work hard instead of shrinking?For Zara’s shareholders, CEO and etc, their goal is to increase the sales and profits. Workinghard raises the probability of making more sales, but the increased effort cost the store managersor salesperson from the other side. In order to provide that effort they have to receive somethingfor return which can be some kind of reward. Zara puts a lot of emphasize on its employees.Approximately 87% of them are at the stores and thanks to great communication they areinterrelated with the company’s headquarters, commercials and DT’s. Interesting thing is thatpeople from bottom (sales associates) can be promoted to store managers, and we can see alsothis on other levels as well.Let first start with the role of store managers. At each store, three product lines are managed bythree independent section managers, each with a team of sales people and cashiers. Eachmanager is in charge for women’s, men’s and children’s section. Woman’s manager is also theoverall manager of the store. Main characteristic that these managers have is autonomy. Theyfeel like entrepreneurs of the store as they have impact on orders for the store and this helps Zarato deal with different culture issues in various countries as they know local values. Thisautonomy is in fact a bonding, as store managers can govern the store. Zara’s philosophy isn’tjust monitoring employees to perform well, but also to have them satisfied with their job. So,sometimes we can see the situations when employees aren’t satisfied with the atmosphere andthen they have the possibility to be transferred to another store (bonding). In our case we treatedstore managers as agents and commercials and DT’s as principals due to the fact that storemanagers should meet the principal’s goals. To increase the productivity of the store and 10
  11. 11. increase sales the store manager has to increase the productivity of the all employees working atthe store. To manage all this responsibilities, the manger has to develop specific skills that willmeet the requirements. Store managers receive competitive salary and a bonus based on howwell they meet target sales. In order to perform well they need also to coordinate sales associates.As they are organized in teams there is an opportunity for shrinking, because of huge number ofemployees in an average store. One of the sale manager’s task is to monitor sales associates andensure work efficiency. In one way we see that incentives are aligned because of monitoringwhich occurs at each level: sales associates are monitored by store managers, store managers byDT’s and commercial and DT’s and commercials by headquarters. All their bonuses are affectedby overall sales, so all of them should have an incentive to put more effort. Another interestingfactor that we found is the risk that store managers face when they are ordering replenishments.They need to use their previous experience together with their ability to forecast new orders. Wesee the risk due to the fact that store managers aren’t aware how many units will be sold, whatwill be the bestseller and how many units are available in warehouse. For this reason Zaracreated incentive-intense payment model for store managers to motivate them to seek betterresults in their performance. 11
  12. 12. From Transaction Costs Economics view, discuss if it makes sense to outsource work to“captive” suppliers. What would be the alternatives, and how do you evaluate them?Outsourcing is becoming more demanding nowadays. The biggest international companies paymore attention to it in sense of trying to reduce their transaction costs. Transaction costs consistof search costs, bargaining costs and policing/enforcement costs.Firstly, we will assume that a company of the rang of Zara will not have financial problemsconcerning making a research about outsourcing elsewhere. Also, the company has enoughhuman resources which could be working on that field.Secondly, in our case the most important part of the transaction costs of economics are thebargaining costs. About 50 % of the production is manufactured in Spain (or in its proximity).Also countries in Asia, Europe and even Latin America contribute to the supply chain of thiswell known brand. About 35 % of the production comes from Asia, 14 % from Europe and only2 % from America. Raw materials come mainly from UK, Holland, China and some otherdestinations. 13 Here we should underline that as far as the good comes from; it is more harder tocontrol the supply process. The small manufacturers in Spain provide the company withsignificant number of production. Besides Zara’s own plants, these suppliers represent a goodchance for the company due to their flexibility – they can change their production rapidly and ofcourse, the smaller they are, the easier for control and price negotiation are they for the Zara.They can easily depend on Zara, especially if they realize economies of scale and/or economiesof scope. Another example can be if Zara invested some capitals (for example equipment, newtechnologies, human resources and etc.) in these small manufacturers.Third of all, policing and enforcement costs also could be significant, especially if theinvestment is based on know-how or patented products. In our case, this is supposed to beresolved by a certain contract, which defines the exact rights and obligations of the both sides. IfZara spoiled by some reason their partnership, these small manufacturers probably would facedifficulties to find another big client for their production. On that way, Zara could easily reduceits transaction costs by pressing the “captive” suppliers. This situation will not seem very likely13 Zara: Managing Stores for Fast Fashion – Harvard Business School 12
  13. 13. to occur in a big fabric which produces for many clients. On the suppliers’ side, this also may bereferred as a post-investment hold-up problem.Uncertainty is low because if any supplier does not want to work with Zara, the company couldeasily find another one. We will assume that the small producers are required to buy or buildexpensive machines, which are suitable only for Zara. In this case, we will have highly assetspecificity that could reduce transaction costs.Another reason for the importance of the small “captive” suppliers in Spain is that they willprobably produce more expensive garment in comparison with low labour costs countries likeChina and India. Due to the fact that Zara’s supply chain is short, the company can react quicklyto the new trends. Zara intentionally choose to produce mainly in Galicia and Northern Portugalbecause of the suppliers’ ability to accomplish fast changes. However, that reflects on thetransaction costs because producing in Europe is typically 15-20 % more expensive. 14The relationship between Zara company and the “captive” suppliers in Spain can be also bindedto other small suppliers elsewhere. Small suppliers in China or India for example may have thesame sensitiveness regarding price negotiation if they sell most of its production to Zara. We can 15easily see that 20 suppliers accounted for 70 % of all external purchases. The bigger suppliershave long term relationships with Inditex. This allows Zara to minimize formal contractualcommitments with them.Regarding the opportunities for outsourcing, perhaps in the future in order to remain competitiveand control costs, Zara might have to move manufacturing mainly to China and India. This canbe a good advantage in view of transaction costs economics because the airfreight cost is aboutonly 1 % of the selling price. The other advantage is the short time for delivery. European storesreceived their deliveries within 24 hours and those in Asia and America received deliverieswithin 40 hours. Also the average cost on a produced item is supposed to be lower in comparisonwith the factories in Spain.16 The cheaper labour cost will contribute to that. This idea should begood considered even earlier, because the opportunity cost of not having more production inAsia because of fast changing orders, could be significant.14 Zara: Fast Fashion – Harvard Business School15 Zara: Fast Fashion – Harvard Business School16 Zara: Managing Stores for Fast Fashion – Harvard Business School 13
  14. 14. On the other hand, the company’s top management should think whether this will be enough tooffset the lost speed ability regarding clothes production. If Zara managed to find somehow lowcost producing suppliers in Asia for example, which could be able to produce for the same timelike the Spanish suppliers, the company will achieve great transaction costs reducement. Ofcourse, the precise answer of the question whether it makes sense to outsource depends mainlyon account data and detailed further analysis.Besides the clothes outsourcing, Zara made changes to outsource some of their day-to-day taskin order to decrease operating expenses. “Labour was the largest operating expense at the storesand any change to improve labour productivity would have significant profit implication.” Oneof the day to day task that bothers Isla and could decrease the labour operating expense is aprocess delivery. What will be the difference for Zara to outsource their process delivery to athird-party logistics companies? At least twice per week, Zara stores receive early morningdelivery that they have to move from the selling floor and remove the plastic covers from itemsand get ready for shelving. The boxes and hangers held mixed products. If we look at thesituation in France they were encouraged to process at least 85 units per person. The questionthat arises here is how to improve the whole process. Zara’s manager could consider to improvethe labour productivity or to outsource process delivery to a third-party. In both cases there willbe positive and negative consequences of their action.Let’s first consider improving labour productivity and what will be the consequences of thataction. Until now as we see the whole work is done by the store employees and as we know ittakes around 5% of their working time. When we look at the negative aspects we see that theyare doing the job slower that if Zara outsources the delivery process and the cost is higher than ifthey hire a third-party. The positive aspect that we could have in that case is that store employeesare familiar with the products and when they remove the plastic covers they can store them fasterfor shelving than a person who sees the product for first time.In order to reduce the time from 5% to 4% or less, store employees have to work under a lot ofpressure and that may affect their later performance. To make that choice managers shouldconsider what they will receive and what they have to give away.The second solution that we have is to outsource process delivery to a third party. If Zara decidesto take that step they have to consider the transaction costs of that decision. The first cost thatZara should pay is “search and informational cost” to determine that the required service is 14
  15. 15. available on the marker and compare the prices. Outsourcing delivery process would save evenmore time and money, but they have to consider what could be the risk of doing that.When we look at transaction cost point of view we have to evaluate the asset specificity, theuncertainty and the frequency, in order to compare the cost of market transactions to the cost ofinternal transactions.In all business relations both parties have to sign a contract and assure that product specificationis clearly defined in the contract. Here appears “bargaining costs” which requires coming to anacceptable agreement. Zara’s requirements are the boxes to be moved from the selling floor andall the products to be stored and ready for shelving. The logistic company will want to be awareof how often the deliveries take place, when the delivery takes place and how many unitsarrived, in order to prepare team for the job. In our case the uncertainty has high level, becauseof the fact that stores receive at least twice per week orders but there is no guaranty for that. Herecomes the risk for Zara if there will be enough workers when the delivery takes place. To ensurethat, the logistic company may increase their demand and so the cost for Zara will increase. Thesecond factor that we have to consider is the possibility that every time when a delivery takesplace there will be different team of workers so they won’t be aware of the situation there. Toremove the boxes from the selling floor and remove the plastic cover has lower asset specificitybut at the same time to store the products by type it may require more time for people that see theproduct for the first time. Finding the product and storing them for shelving requires the workersto be aware of the situation at the store. That gives higher asset specificity. In that case Zara maywant the team to be always the same. To insure that the logistic company will increase theirdemand. In order to evaluate the logistic company move, Zara needs only to analyze whatmoves their opponent can possibly make and evaluate all possible moves that they could make inanswer to each possible countermove(when they describe the conditions in the contract). Whenthe delivery will take place and etc.? These are elements of uncertainty/complexity that willincrease the market transaction cost. Of course if Zara conclude a contract for a long run or forall their stores in a specific country that may decrease the market cost. In order to reach truceboth parties will come up with their own requirements. To decrease the market cost ofoutsourcing the delivery process Zara should predict all the moves that their opponent couldmake and come with an attractive offer. 15
  16. 16. In relation to the fashion sector in Europe, does Inditex posses a competitive advantage?Use the VRIO framework as the basis of your discussionCompetitive advantage is defined as superiority of an organization with regard to at least oneproduct attribute over relevant competitors. When a firm sustains profits that exceed the averageof its industry, the firm is said to possess a competitive advantage over its rivals. The goal ofbusiness strategy is to achieve a sustainable competitive advantage, which is very difficult task.We will use the VRIO Framework to analyze the internal environment of the Inditex (Zara)which will help us to determine whether Zara has resources/capabilities to exploit it’scompetitive potential. “VRIO” is structured in a series of four questions: 1) Question of Value 2)Question of Rarity 3) Question of Imitability 4) Question of Organization.Fashion industry is very competitive and subject to rapidly evolving fashion trends. Based on theVRIO Framework and analysis of competitive advantage, we found that Inditex (Zara) hascompetitive advantage. Inside a business model we can see a strong vertical integration and wellorganized supply chain, which combined with organizational structure gives to Zara flexibility torespond, adapt and deliver merchandise faster than its competitors. Unlike their competitors suchas H&M, Mango, United Colors of Benetton in Europe, Zara has disintegrated decision-makingmodel. And above all, the price of merchandise is affordable.Now we will analyze each question in detail regarding VRIO Framework.1) Value – does a resource enable a firm to exploit an environmental opportunity and/ orneutralize an environmental treat? We see Inditex rather as a combination of resources, so themost valuable resource we would put is the vertical integration. Instead of relying on thirdparties, the company manages all design, warehousing, distribution and logistics function itself.Doing that they are more flexible and faster than competitors and we know what these two wordsmean in apparel industry. Along with the vertical integration which also reduces operating costsit has excellent conceived organizational structure and values that all employees must respect.The reward is great autonomy that store managers have. Some skeptic persons could ask whetherthis value could be used in future? Our answer is probably yes, as Zara carefully follows changesin consumer tastes and due to flexibility and speed it can adapt. Second justification could be thatit follows world trends and it might outsource more from Asian markets to reduce its costs.2) Rareness – how many competing firms already posses particular valuable resources andcapabilities? If we analyze competitors we’ll see that most of them outsource most of the 16
  17. 17. production, while focusing on distribution and retailing. The reason is that the industry is morelabor-intensive. Inditex does just the opposite .It puts more emphasize on capital-intensiveindustry.17 Difference could be easily seen in figures: “Zara is able to produce new items anddeliver them to its stores in less than three weeks rather than the average six months needed forluxury brands and in terms of production in a typical season it produces about 11000 differentitems while competitors would produce typically between 2000 and 4000.”18 So we see that theresource is rare.3) Imitability – do firms without a resource or capabilities face a costly disadvantage in obtainingit compared to firms that already posses it? Nowadays almost everything is imitable. Thequestion is how long it takes to imitate. In the case of Inditex we freely assume that ifcompetitors were to copy Zara business model, they could, but only in a long run. It would take afew years to establish vertical integration model with that kind of supply chain and even more tocreate organizational structure (culture) that Zara has. We should also take into considerationenormous costs that those firms would incur in order to copy the model, which are oftenimpossible for firms to incur. Although if this is supposed to happen, we think that in meanwhileZara would probably progress more in other segments, because as we saw they make smallchanges very often. To cite the Inditex’s founder Amancio Ortega when he talked to Pablo Islawho is CEO: “Once a month, come here thinking that we are near bankruptcy. You will find a lotof things to change.”4) Organization – is a firm organized to exploit the full competitive potential of its resources andcapabilities? We can see that it is. If we look at the annual reports we can see that they areconstantly increasing sales and profits. Merit for this goes to top management, but also to everyindividual engaged in every process of Inditex. We shouldn’t forget that section managers haveautonomy and that they together with the DT’s, HR managers and commercials contribute tosuccess. Here lies their strength. Possibility of coordinating all those people despite the fact, thatthey have some kind of autonomy in decision-making process.”1917 Although Inditex combines it also with labor – intensive industry ( doing that they are more flexibleand faster in producing garment )18 Zara: Managing Stores for Fast Fashion – Harvard Business School19 Zara: Managing Stores for Fast Fashion – Harvard Business School 17
  18. 18. The VRIO frameworkIs a resource or capability …Valuable? Rare? Costly to Exploited by Competitive Economic imitate? the implications Performance organization?No - - No Competitive Below disadvantage NormalYes No - Competitive Normal parity ↑Yes Yes No Temporary Above competitive normal(at ↓ advantage least in the short run)Yes20 Yes Yes Yes Sustained Above competitive normal advantage20 Bold text refers to Inditex’s ( Zara’s ) case 18
  19. 19. List of sourcesZara: Managing Stores for Fast Fashion – Harvard Business SchoolNotes on Zara caseInditex Group: Annual report 2011The Economist:Inditex - Fashion ForwardThe Economist: Global Streach - When will Zara hit its limits?The Economist: Good Darning VietnamThe Forbes: The Strategic Retail Genius Behind ZaraThe Forbes: The Future of Fashion Retailing - The Zara Approach 19