Planeta Zara

A corporate strategy refers to the overarching strategy of the firm, answering questions as "which businesses should we be in?" and "how does being in these businesses create synergy and/or add to the competitive advantage of the corporation as a whole?" having this in mind, Zara’s main corporate strategy answers the first question of the business that has to be covered, and it is Fashion andfashion at the lowest price possible. What inditex group pretended to do was to develop a business based on good quality clothes, with fabrics of high quality, skilled workforce, high technology… All this concern to develop a garment made ​​according to the tastes and needs of the people.

In 1963, Amancio Ortega Gaona founded a company dedicated to the manufacture of garments that gradually growsuntil it has several manufacturing sites that distribute their products to different European countries. However, it wasn’t until 1975 when it opened its first store under the name Zara in the main street of La Coruña. During the next ten years, the chain is spreading rapidly throughout Spain and in 1985 created Inditex as the head of group of companies. In the following years saw the departurefrom the Spanish border by opening stores in Oporto, New York and Paris.
But they have not only developed a demographic expansion but also within the company, as the creation of other brands such as Pull and Bear, Bershka ... and the acquisition of others as Massimo Dutti or Stradivarius.

The structure of the company as a centralized firm, the company has its own production and suppliers andhalf of its factories are in a close radius, i.e., in Galicia, Portugal and Morocco. 14% of the clothes are manufactured in European countries such as Turkey, Bulgaria or Romania, while 34% comes from Asia and the remaining 2% of factories in Brazil, Argentina, Uruguay and Mexico.
Its structure allows the company to be very competitive, and their strategies for low prices, reduction of storagecosts for the limited stock.

Inditex has basically two types of competitive advantage, which has to do with supply and demand.
The first is flexibility in the production, which involves rapid supply response to a rapidly changing demand. Are able to develop a perfect synchronization of the processes of production and distribution that allows them to anticipate or respond more effectively to theactions of his competence, one of its strengths is its system of supply of fabrics, which makes it through a group that acts in Asia and limit the ability of suppliers to negotiate. This flexible production is that Inditex is the only textile company in the world that has its own manufacturing process, vertical integration.
Get this flexibility through a unique process Inditex JIT, the modelbased on small independent chains can modify the production change and progress in relation to variations in demand. The last factor that influences the flexibility is the decentralization and autonomy of each of the firms in the firm, each firm makes its own decisions on how to manage their resources strategies that will develop.
Another competitive advantage of the group is in the logistics andstorage; few companies have as a logistics center in Zaragoza and in the same system as efficient storage and distribution.
The other group's competitive advantage lies in the diversification Inditex supply function of the characteristics of markets, the first company of the group is public Zara whose middle-class family, is the one that most stores have.
The second signature is Massimo Dutti hasan audience of more affluent, the other, pull and bear, Bershka, Stradivarius, oysho, are dedicated to a young public.

The strategies and decisions developed by the Inditex Group are:
About defining the product or product line that you are conducting is a very important strategy for a line of action clearly defined to facilitate the development of the activity. In Zara’s case, each shop of...