Marketing Essay: How Zara’s strategic and operational approach to the global retail market was untraditional and/or disruptive?

Running head: INDITEX1
Inditex: Case Analysis
Student Name
College/University Affiliation
INDITEX

2

Inditex: Case Analysis
Q 1: Explain how Zara’s strategic and operational approach to the global retail market was
untraditional and/or disruptive?
In contrast to global fashion brands, Zara, a flagship brand of Inditex, combines high-fashion and cost-competitiveness to expand in market share and further penetrate existing markets. Inspired by company's legendary founder, Amancio Ortega Gaono, Zara – and, for that matter, Inditex's series of brands – has captured consumer moods fleeting market sensibilities of competing brands. Specifically, Zara – informed by founder's longstanding expertise in high fashion and connections as well as Inditex's first CEO's, Jose Castellano's, business informatics and systematic management – has managed to identify key consumer habits – now changing rapidly from strict and conventional market segmentation of low/medium/high into a more fragmented market scene. Initially, Zara, a fast fashion brand, started off as a copycat of existing successful brands, particularly high-fashion ones, and, as company's management and store managers gained more granular insights consumer preferences at stores, moved on to churn out designs at considerable numbers and across different demographic segments making Zara one of world's most adaptive and agile brands catering to consumers far faster compared to competition. Moreover, Inditex, Zara's parent company, has shown consistent improvement in and development of company's management systems, particularly in expansion and cost reduction, so much so Zara, as well as co-brands, has managed to expand internationally at rates unprecedented by competition – only to prove, at least so far, mistaken concerns of industry's analysts about market oversaturation.
Q 2: How did Zara capture the consumers’ interests? How was Zara more competitive in
INDITEX