International Marketing William Chester Case Study 3-4 #4. Briefly describe five opportunities for continued growth during the next five years for Zara’s parent, Inditex, SA. It is important to realize the manner in which other competitor’s of Inditex, SA are operating. As the economic criteria for promoting an established discipline in the desired sectors, the most common act to follow is retreat. But as those firms hold back or constrain their efforts to accompany short term financial parameters, I believe that many experienced capitalists will retrieve heightened gains with several uncommon practices to boost capital.
First, as mentioned in the article, the firm plans on expanding the number of stores that they now operate in many different countries. This is the most respected, in my opinion, because costs are much lower in such economies, meaning that as others are closing stores and laying off personnel, there is a grand opportunity to enlarge production and develop more progressive features for attracting customers. The price of material and labor are at an all time low, since the early part of the twentieth century, so it only makes sense to move forward in this area.
Another factor to consider is the point of operating at an aggressive level. As I mentioned, many retailers all over the globe are decreasing their efforts to comply with management decisions for the lack of economic prosperity, so this is the time to move forward at an aggressive rate. As competitors tighten, there will be fewer products to choose from, which allow the Inditex, SA organization to prosper at the lack of material on the shelf.
Not only will there be a deficiency of product, but less colors and fashion to accommodate the client. This expectation proves the ability to corner the market, if you will, and maximize those results, at the cost of their competitors. Every firm has a time and place for achieving success, and with the models they have developed requires them to alter each practice as others in the field move closer to mimicking those models. This is also another great practice for the firm moving forward.
While Inditex, SA is constantly watched for their success, it will allow them to establish several different practices that will keep other firms busy understanding how they operate, even if they don’t always use those developed practices. The importance of mastering techniques is understanding the opposition. When economies are reduced there is usually a reduction is harvesting as well. This can also be positive in the manufacturing industry, because it allows your firm to accomplish more controllable material costs.
With much more manageable costs and the fact that your firm will have more product on the shelf is a testimony to the behavior of the economic abilities the firm controls. At this time many firms will cease to exist and firms like Inditex, SA will continue to expand. Just like normal fashion, with every recession is the reduction of competitors. If Inditex, SA accomplishes these goals in the next five years, I believe they will continue to operate at the level they are. http://highered. mcgraw-hill. com/sites/dl/free/007352994x/862122/case_3_4_Continued_Growth_for_Zara_and_Inditex. pdf