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Zara is a retailing chain of Inditexthat specializes in high-fashion at bonnie termss. In the last 12 months, Inditexs stock price has increased by 50% despite bearish market place conditions. The 50% increase is due to the investor expectations of Inditexs harvest-home. Inditexs growth can be contributed to the decisions it has made in creating a vertically integrated centralized process. The centralization of its vertically integrated operations in europium provided it with its competitive advantage; however, I confide it will also make it fail if it decides to grow easily into other markets. Financial Analysis compare to competitors In analyse Inditex financial performance against its competitors, it is apparent that Inditex is performing extremely soundly compared to its competitors in terms of harvestivity of its workforce, net revenues and cost of goods sold. Their fall down on investment is also significantly higher than others. conquest Factors The vertical integration of Zara was successful because of the following key tactical decisions: Ownership and control of production: Unlike many of Zaras competitors, Zara decided not to outsource most of its production. Instead the bulk of the production was performed in Europe.

By having operations in close- law of proximity to its headquarters allowed for better and faster communication between functional areas for faster decision making. It also provided an added sense of quality to the product as the tags would be labeled withmade in Europe rather than made in China. More importantly, Zara possess many of the fabric dying, processing and cutting equipment that provided Zara added control andflexibility to select new trends on demand. The added flexibility helped Zaraon two fronts: shorter lead propagation and fewer inventories. Because the production was done in house and rightful(prenominal) in time, Zara was able to shorten its lead to less than a month compared to the 4-6 months of other retailers. Zarawas able to catch a trend...

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