Essay: The Inditex Company

Sample Essay

The Inditex Company is an international organization established in the retail industry. The company has its headquarters and its origins inSpainbut operates expansively in the world through different fashion brands and retail stores. The Inditex Company has the business function of designing, manufacturing and selling footwear, apparel and accessories. These products are designed for men, women as well as children, and Zara the focus of the case is one of its branded retail china of stores for its products. About 46 percent of the revenues for the company are generates though its chain of stores inSpainwhole 54 percent contribution to sales is made through its international retail operations.

The key historical events that have surrounded the company include the establishment of the first Zara retail store in 1975. The Zara brand was launched as a fashion brand which was stylish, easily accessible as well as affordable for the consumers in the market. Following its establishment the company had established five stores to its retail network for Zara by the end of the 1970s which were operating in the Galician cities. The company was one of the first pioneers in the retailing information technology in the mid 1970s. The company under Inditex in the 1980s managed to roll out stores all overSpainand in the 90s, it expanded into the international market through takeovers, acquisitions and foreign direct investment in different countries inEurope. “Zara then began to open stores outsideSpainand to make quantum investments in manufacturing logistics and IT. The early 1990s was also when Inditex started to add other retail chains to its network through acquisition as well as internal development” (Nueno & Ghemawat, 2006)

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