In around 11 years from the time of its public offering, Inditex along with its main brand, Zara, had expanded into 86 countries, reached $21.6 billion in sales, and become the largest specialty clothing retailer in the world.
In marked contrast to the general malaise of the Bolsa de Madrid, Inditex's share price traded at 25 times anticipated 2013 gains, a 15% premium over Swedish competition, H&M. and tripled from 2008 to 2012 From 1,080 stores in 2000, it had expanded to 6,009 locations while revenue and operating profits grew 25% p.a over this span. It had also established online stores across 23 distinct marketplaces, with strategies for launches in Canada and Russia during 2013, and it managed eight distinct brands. The CEO Pablo Isla persisted to remain confident of prospective success and hoped-for shop growth would continue growing at 8%-10% per year for the next three to five years. How could Inditex finest keep its strong growth and fend off competition?
PUBLICATION DATE: June 03, 2013 PRODUCT #: 713539-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION