Zara: Future Ready?
| Case Code: OPER122 Case Length: 10 Pages Period: 2011 - 2016 Pub Date: 2017 Teaching Note: Available |
Price: Rs.400 Organization : Inditex Industry : Apparel Manufacturing and Retail Countries : Spain Themes: - |
Abstract Case Intro 1 Case Intro 2 Excerpts
Inditex
Inditex was headquartered in Coruña, a port city in northern Spain. It operated 6 independent chains: Zara, Massimo Dutti, Pull & Bear, Berksha, Stradivarius Oysho, Zara Home, and Uterque and was owned by Amancio Ortega Gaona (Ortega), the second richest man in the world with a net worth of $72 billion in 2016. Born in 1936 to a rail road worker and a house maid, Ortega had humble beginnings, working as an errand boy for a shirt manufacturer in Coruña. Moving up the ladder to become a clerk while learning the ropes, Ortega quit in 1963 and started his own business named Confecciones Goa to manufacture lingerie and women’s nightwear. Ortega then forward integrated into retailing and further cofounded Zara with his wife, Rosalía Mera (d.2013) in 1975. The first Zara store opened in 1975 right at the center of Coruña. Zara’s first factories were based in a neighboring town of Coruña named Arteixo. In 1985, Inditex was incorporated as the group’s holding company..
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