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Written case assignments should be no longer than 3 pages single-spaced not including any tables. Please use MS word format (.doc). See the case . Please see the attachment . please write good case . chains has zoomed, Zara’s rivals Hennes & Mauritz AB of Sweden and Mango of Spain have also become fi xtures on U.S. shopping streets. In addition to Zara, which makes up 60 percent of its business, Inditex owns seven smaller store brands, including the more upscale Massimo Dutti and the youth-oriented Bershka. In the last 12 months Inditex added 560 stores, including entering new markets in Croatia, Colombia, Guatemala, and Oman, to reach 3,691 stores in 68 countries. It plans expansion of a similar scope over the next year. The fi rst Zara store opened in 1975 in La Coruña, a port town near Arteixo in a remote corner of northern Spain. Its two key traits were an eye for customer tastes and a production process that started with the fi nal price and worked backward to the mosteffi cient production. In the mid-1980s, local business-school professor José Maria Castellano, a technophile, joined Inditex as right-hand man to founder Amancio Ortega Gaona, and the company became a world-class logistical outfi t, peddling “fast fashion.” The fi rst foreign store, in Portugal, opened in 1989, followed by New York. In 2001, Mr. Ortega took Inditex public and its stores are now on prime shopping streets around the world. Stores are stocked with new designs twice a week. Collections are small and often sell out, creating an air of exclusivity and cutting down on the need for markdowns. The company ships clothes straight from the factory to stores. Unlike competitors who manufacture most of their wares in Asia, Inditex makes two-thirds of its goods in Spain and nearby countries such as Portugal, Morocco and Turkey. The retailer says the higher labor costs are offset by the fl exibility of having production close to its warehouses and distribution centers, which are all in Spain. At “the Cube,” as employees call their futuristic-looking headquarters outside La Coruña, sales managers sit at a long row of computers, monitoring sales at every store around the world. When a garment sells well—or fl ops—they quickly tell designers sitting nearby to whip up fresh designs. In the basement, stylists decide store layouts and window displays. One room is built like a shopping street, its walls lined with lit and decorated store windows that dictate how storefronts will look from New York’s Fifth Avenue to London’s Regent Street. Every two weeks, new decorations are photographed and e-mailed to stores to replicate. To speed up new store openings, Mr. Isla needed to cut start-up costs. Inditex now avoids store openings in slow months such as August. In the past, stores opened year-round, accruing costs from the fi rst day even if sales took longer to build. Mr. Isla’s goal is for Inditex is to reverse a trend of costs growing faster than sales. It met that target in the fi rst half ended July 31, 2007, when costs grew 16 percent over the same period the previous year, while sales increased 19 percent. In another move to cut costs, Mr. Isla installed software in store computers to schedule staff based on sales volume at different times. As a result, more salespeople work at peak times such as lunchtime or the early evening. Inditex says the more fl exible schedules shaved 2 percent off the hours staff work. Alarm tags CASE 3?4 Continued Growth for Zara and Inditex CIRCA 2008 ARTEIXO, Spain—Zara stores have set the pace for retailers around the world in making and shipping trendy clothing. Now Pablo Isla, chief executive of parent company Inditex SA, says Zara needs to speed up. As rivals catch up, Mr. Isla is attempting one of the fastest global expansions the fashion world has ever seen, opening hundreds of new stores and entering new markets. To do that, as an economic downturn threatens sales, Inditex is changing the systems that have driven its success at Zara and its other store brands, to save time and money. Among the innovations, it is introducing new methods to enable store managers to order and display merchandise faster and adding cargo routes for shipping goods. “There has been a clear change of mentality in the company,” Mr. Isla, a former tobacco executive who arrived at Inditex in 2005, said in an interview at the company’s headquarters here. The world’s second largest clothing retailer by sales after Gap Inc., Inditex is responding to a predicament shared by other companies that come up with game-changing formulas: Eventually competitors catch up, forcing the pioneers to do even better to keep their edge. Low-cost carrier Southwest Airlines Co. is making big changes to fend off rivals that have copied its effi cient operating model. Inventory-control methods at Walmart Stores Inc. are being mimicked around the world, and Google Inc. is updating its search engine to keep users loyal. The consumer slowdown is adding pressure. Inditex shares have fallen nearly 24 percent in the last 12 months, in large part because investors are worried about an economic downturn in Spain, where Inditex generates over a third of its $12 billion in annual sales. The company is pressing ahead with its expansion plans even as consumers are slowing down. In the U.S., retailers had their worst monthly sales results in nearly fi ve years in January, and some chains are planning to close stores and cut jobs. U.K. retailer Marks & Spencer PLC recently reported its worst quarterly sales performance in two years, and warned the pain could extend into 2009. The industry is watching the company’s logistical makeover. Though it sells inexpensive trendy clothing—“fast fashion” in industry parlance—Zara has been so successful in luring highpaying customers that luxury fashion brands such as Gucci, Burberry and Louis Vuitton have overhauled their own practices to send new fashions to stores more frequently. “They’re a fantastic case study in terms of how they manage to get product to their stores so fast,” Stacey Cartwright, chief fi nancial offi cer of Burberry Group PLC, says of Zara. “We are mindful of their techniques.” In recent years, competitors across the globe have adopted Zara’s methods. Italy’s Benetton Group SpA now replenishes stores up to once a week. Los Angeles-based Forever 21 Inc. and Japanese apparel giant Fast Retailing Co., owner of the Uniqlo chain, can get new looks to their stores within six weeks. Even outdoor clothing maker Patagonia Inc. has doubled the number of new styles it offers every year. As the popularity of cheap-and-chic

Written case assignments should be no longer than 3 pages single-spaced not including any tables. Please use MS word format (.doc). See the case . 
Please see the attachment . please write good case .

chains has zoomed, Zara’s rivals Hennes & Mauritz AB of Sweden
and Mango of Spain have also become fi xtures on U.S. shopping
streets.
In addition to Zara, which makes up 60 percent of its business,
Inditex owns seven smaller store brands, including the more upscale
Massimo Dutti and the youth-oriented Bershka. In the last 12
months Inditex added 560 stores, including entering new markets
in Croatia, Colombia, Guatemala, and Oman, to reach 3,691 stores
in 68 countries. It plans expansion of a similar scope over the next
year.
The fi rst Zara store opened in 1975 in La Coruña, a port town
near Arteixo in a remote corner of northern Spain. Its two key
traits were an eye for customer tastes and a production process
that started with the fi nal price and worked backward to the mosteffi
cient production. In the mid-1980s, local business-school
professor José Maria Castellano, a technophile, joined Inditex as
right-hand man to founder Amancio Ortega Gaona, and the company
became a world-class logistical outfi t, peddling “fast fashion.”
The fi rst foreign store, in Portugal, opened in 1989, followed
by New York. In 2001, Mr. Ortega took Inditex public and its stores
are now on prime shopping streets around the world.
Stores are stocked with new designs twice a week. Collections
are small and often sell out, creating an air of exclusivity and cutting
down on the need for markdowns. The company ships clothes
straight from the factory to stores. Unlike competitors who manufacture
most of their wares in Asia, Inditex makes two-thirds of its
goods in Spain and nearby countries such as Portugal, Morocco
and Turkey. The retailer says the higher labor costs are offset by
the fl exibility of having production close to its warehouses and
distribution centers, which are all in Spain.
At “the Cube,” as employees call their futuristic-looking
headquarters outside La Coruña, sales managers sit at a long
row of computers, monitoring sales at every store around the
world. When a garment sells well—or fl ops—they quickly tell
designers sitting nearby to whip up fresh designs. In the basement,
stylists decide store layouts and window displays. One
room is built like a shopping street, its walls lined with lit and
decorated store windows that dictate how storefronts will look
from New York’s Fifth Avenue to London’s Regent Street. Every
two weeks, new decorations are photographed and e-mailed to
stores to replicate.
To speed up new store openings, Mr. Isla needed to cut start-up
costs. Inditex now avoids store openings in slow months such as
August. In the past, stores opened year-round, accruing costs from
the fi rst day even if sales took longer to build. Mr. Isla’s goal is
for Inditex is to reverse a trend of costs growing faster than sales.
It met that target in the fi rst half ended July 31, 2007, when costs
grew 16 percent over the same period the previous year, while
sales increased 19 percent.
In another move to cut costs, Mr. Isla installed software in
store computers to schedule staff based on sales volume at different
times. As a result, more salespeople work at peak times such
as lunchtime or the early evening. Inditex says the more fl exible
schedules shaved 2 percent off the hours staff work. Alarm tags
CASE 3?4 Continued Growth for Zara and Inditex
CIRCA 2008
ARTEIXO, Spain—Zara stores have set the pace for retailers
around the world in making and shipping trendy clothing. Now
Pablo Isla, chief executive of parent company Inditex SA, says
Zara needs to speed up. As rivals catch up, Mr. Isla is attempting
one of the fastest global expansions the fashion world has ever
seen, opening hundreds of new stores and entering new markets.
To do that, as an economic downturn threatens sales, Inditex is
changing the systems that have driven its success at Zara and its
other store brands, to save time and money. Among the innovations,
it is introducing new methods to enable store managers to
order and display merchandise faster and adding cargo routes for
shipping goods. “There has been a clear change of mentality in
the company,” Mr. Isla, a former tobacco executive who arrived
at Inditex in 2005, said in an interview at the company’s headquarters
here.
The world’s second largest clothing retailer by sales after Gap
Inc., Inditex is responding to a predicament shared by other companies
that come up with game-changing formulas: Eventually
competitors catch up, forcing the pioneers to do even better to
keep their edge. Low-cost carrier Southwest Airlines Co. is making
big changes to fend off rivals that have copied its effi cient operating
model. Inventory-control methods at Walmart Stores Inc.
are being mimicked around the world, and Google Inc. is updating
its search engine to keep users loyal.
The consumer slowdown is adding pressure. Inditex shares
have fallen nearly 24 percent in the last 12 months, in large part
because investors are worried about an economic downturn in
Spain, where Inditex generates over a third of its $12 billion in
annual sales. The company is pressing ahead with its expansion
plans even as consumers are slowing down. In the U.S., retailers
had their worst monthly sales results in nearly fi ve years in January,
and some chains are planning to close stores and cut jobs. U.K.
retailer Marks & Spencer PLC recently reported its worst quarterly
sales performance in two years, and warned the pain could extend
into 2009.
The industry is watching the company’s logistical makeover.
Though it sells inexpensive trendy clothing—“fast fashion” in
industry parlance—Zara has been so successful in luring highpaying
customers that luxury fashion brands such as Gucci,
Burberry and Louis Vuitton have overhauled their own practices
to send new fashions to stores more frequently. “They’re a fantastic
case study in terms of how they manage to get product to
their stores so fast,” Stacey Cartwright, chief fi nancial offi cer
of Burberry Group PLC, says of Zara. “We are mindful of their
techniques.”
In recent years, competitors across the globe have adopted
Zara’s methods. Italy’s Benetton Group SpA now replenishes
stores up to once a week. Los Angeles-based Forever 21 Inc. and
Japanese apparel giant Fast Retailing Co., owner of the Uniqlo
chain, can get new looks to their stores within six weeks. Even
outdoor clothing maker Patagonia Inc. has doubled the number of
new styles it offers every year. As the popularity of cheap-and-chic
Written case assignments should be no longer than 3 pages single-spaced not including any tables. Please use MS word format (.doc). See the case . 
Please see the attachment . please write good case .

chains has zoomed, Zara’s rivals Hennes & Mauritz AB of Sweden
and Mango of Spain have also become fi xtures on U.S. shopping
streets.
In addition to Zara, which makes up 60 percent of its business,
Inditex owns seven smaller store brands, including the more upscale
Massimo Dutti and the youth-oriented Bershka. In the last 12
months Inditex added 560 stores, including entering new markets
in Croatia, Colombia, Guatemala, and Oman, to reach 3,691 stores
in 68 countries. It plans expansion of a similar scope over the next
year.
The fi rst Zara store opened in 1975 in La Coruña, a port town
near Arteixo in a remote corner of northern Spain. Its two key
traits were an eye for customer tastes and a production process
that started with the fi nal price and worked backward to the mosteffi
cient production. In the mid-1980s, local business-school
professor José Maria Castellano, a technophile, joined Inditex as
right-hand man to founder Amancio Ortega Gaona, and the company
became a world-class logistical outfi t, peddling “fast fashion.”
The fi rst foreign store, in Portugal, opened in 1989, followed
by New York. In 2001, Mr. Ortega took Inditex public and its stores
are now on prime shopping streets around the world.
Stores are stocked with new designs twice a week. Collections
are small and often sell out, creating an air of exclusivity and cutting
down on the need for markdowns. The company ships clothes
straight from the factory to stores. Unlike competitors who manufacture
most of their wares in Asia, Inditex makes two-thirds of its
goods in Spain and nearby countries such as Portugal, Morocco
and Turkey. The retailer says the higher labor costs are offset by
the fl exibility of having production close to its warehouses and
distribution centers, which are all in Spain.
At “the Cube,” as employees call their futuristic-looking
headquarters outside La Coruña, sales managers sit at a long
row of computers, monitoring sales at every store around the
world. When a garment sells well—or fl ops—they quickly tell
designers sitting nearby to whip up fresh designs. In the basement,
stylists decide store layouts and window displays. One
room is built like a shopping street, its walls lined with lit and
decorated store windows that dictate how storefronts will look
from New York’s Fifth Avenue to London’s Regent Street. Every
two weeks, new decorations are photographed and e-mailed to
stores to replicate.
To speed up new store openings, Mr. Isla needed to cut start-up
costs. Inditex now avoids store openings in slow months such as
August. In the past, stores opened year-round, accruing costs from
the fi rst day even if sales took longer to build. Mr. Isla’s goal is
for Inditex is to reverse a trend of costs growing faster than sales.
It met that target in the fi rst half ended July 31, 2007, when costs
grew 16 percent over the same period the previous year, while
sales increased 19 percent.
In another move to cut costs, Mr. Isla installed software in
store computers to schedule staff based on sales volume at different
times. As a result, more salespeople work at peak times such
as lunchtime or the early evening. Inditex says the more fl exible
schedules shaved 2 percent off the hours staff work. Alarm tags
CASE 3?4 Continued Growth for Zara and Inditex
CIRCA 2008
ARTEIXO, Spain—Zara stores have set the pace for retailers
around the world in making and shipping trendy clothing. Now
Pablo Isla, chief executive of parent company Inditex SA, says
Zara needs to speed up. As rivals catch up, Mr. Isla is attempting
one of the fastest global expansions the fashion world has ever
seen, opening hundreds of new stores and entering new markets.
To do that, as an economic downturn threatens sales, Inditex is
changing the systems that have driven its success at Zara and its
other store brands, to save time and money. Among the innovations,
it is introducing new methods to enable store managers to
order and display merchandise faster and adding cargo routes for
shipping goods. “There has been a clear change of mentality in
the company,” Mr. Isla, a former tobacco executive who arrived
at Inditex in 2005, said in an interview at the company’s headquarters
here.
The world’s second largest clothing retailer by sales after Gap
Inc., Inditex is responding to a predicament shared by other companies
that come up with game-changing formulas: Eventually
competitors catch up, forcing the pioneers to do even better to
keep their edge. Low-cost carrier Southwest Airlines Co. is making
big changes to fend off rivals that have copied its effi cient operating
model. Inventory-control methods at Walmart Stores Inc.
are being mimicked around the world, and Google Inc. is updating
its search engine to keep users loyal.
The consumer slowdown is adding pressure. Inditex shares
have fallen nearly 24 percent in the last 12 months, in large part
because investors are worried about an economic downturn in
Spain, where Inditex generates over a third of its $12 billion in
annual sales. The company is pressing ahead with its expansion
plans even as consumers are slowing down. In the U.S., retailers
had their worst monthly sales results in nearly fi ve years in January,
and some chains are planning to close stores and cut jobs. U.K.
retailer Marks & Spencer PLC recently reported its worst quarterly
sales performance in two years, and warned the pain could extend
into 2009.
The industry is watching the company’s logistical makeover.
Though it sells inexpensive trendy clothing—“fast fashion” in
industry parlance—Zara has been so successful in luring highpaying
customers that luxury fashion brands such as Gucci,
Burberry and Louis Vuitton have overhauled their own practices
to send new fashions to stores more frequently. “They’re a fantastic
case study in terms of how they manage to get product to
their stores so fast,” Stacey Cartwright, chief fi nancial offi cer
of Burberry Group PLC, says of Zara. “We are mindful of their
techniques.”
In recent years, competitors across the globe have adopted
Zara’s methods. Italy’s Benetton Group SpA now replenishes
stores up to once a week. Los Angeles-based Forever 21 Inc. and
Japanese apparel giant Fast Retailing Co., owner of the Uniqlo
chain, can get new looks to their stores within six weeks. Even
outdoor clothing maker Patagonia Inc. has doubled the number of
new styles it offers every year. As the popularity of cheap-and-chic

Interested in a PLAGIARISM-FREE paper based on these particular instructions?...with 100% confidentiality?

Order Now