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Inditex SWOT & PESTLE Analysis

ID : 52827253| Dec 2020| 15 pages

COMPANY PROFILE -Inditex

Business Sector :Textile

Operating Geography :Spain, Global

About Inditex :

Inditex is a Spanish clothing company founded by Amancio Ortega in 1963. The company manufactures and sells clothing for men and women. Its activity includes retail distribution of clothing, footwear, accessories and household textile products through various commercial format stores targeted at different sectors of the market. The company sells in 202 markets through its online platform or physical stores. The company is involved in all the stages of the fashion process, starting from design, manufacturing and logistics, to sales. The current CEO of Inditex is Carlos Crespo and the company is headquartered in A Coruña, Spain. The company produces and distributes fashion clothing through its eight brands that include Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. Inditex's shares have been listed on the Madrid stock exchange since 2001. Inditex is a market leader of the fashion industry.

Inditex Revenue :


€ 28,286 million-FY ended 31st January 2020 (YoY growth 8%)
€ 26,145 million–FY ended 31st January 2019

Competitive Analysis of Inditex

SWOT
PESTLE
The SWOT analysis of Inditex is presented below:
Strengths
Weaknesses
1. Global footprint of Inditex in the fashion industry
2. Diverse range of product portfolio
3. Focus on improvement of shopping experience of customers
4. Stringent testing and analysis of product quality
5. Use of RFID technology for inventory management
6. Efficient supply chain as a competitive advantage
1. Multiple lawsuits against Zara for infringement of designs
2. Negative publicity of Inditex due to racial discrimination complaints
Opportunities
Threats
1. Greater focus on Online stores
2. Scope of Augmented Reality in retail
1. Financial risk due to currency exchange fluctuations
2. Business disruptions due to coronavirus outbreak
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Detailed SWOT Analysis of Inditex

 

Strength

1. Global footprint of Inditex in the fashion industry: Inditex is the parent for eight well-known brands including Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe. It has been the biggest fashion retailer of the world in terms of revenue. With around 7,469 stores in 96 markets, 1,985 suppliers and 8,155 factories worldwide in 2019, Inditex is one of the world’s largest retailers in the fashion industry. The company has a strong workforce of 176,000 employees from 172 different nationalities and highly diverse cultures, religions, ethnicities and tastes. Amancio Ortega, the owner of Inditex, was the third richest man in the world in 2017 but has now slipped to number eleven in 2020 because of heavy losses suffered due to the COVID-19 pandemic.

2. Diverse range of product portfolio: Each one of Inditex’s brands targets different age groups and offers products starting from apparel, footwear, sportswear, small appliances and kitchenware, to high-quality accessories and leatherwear. While Pull&Bear is primarily intended for casualwear of young customers, Oysho specialises in lingerie, beachwear, home wear and Sportswear. The company Zara Gap, that sells Inditex’s footwear through the eight brands has become an example of how to replenish stores almost instantly and beat competitors to trends. Zara, the most famous and profitable brand of Inditex offers fashionable clothing for kids, teenagers and adults along with footwear and handbags. Inditex’s another brand, Zara Home is a bit different from others since its offerings focus more on home décor products such as bedding, tableware, bed and bath linen, along with dishware, glassware, cutlery etc. Apart from these, Zara Home also sells apparel and accessories associated with the comfort and intimacy of home life, although its prime offerings are home décor products.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

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References used in Inditex SWOT & PESTLE Analysis Report

1. Inditex Annual Report 2019 - https://www.inditex.com/documents/10279/645708/2019+Inditex+Annual+Report.pdf/688d1a9a-ad63-a4d6-8b16-cf64d8f91fba

2. Inditex history - https://www.companieshistory.com/inditex/

3. Inditex company profile - https://in.reuters.com/finance/stocks/company-profile/ITX.MC

4. Inditex company website - https://www.inditex.com/about-us/inditex-around-the-world#continent/000

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Inditex SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & PESTLE.com (2021). Inditex SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/inditex/ [Accessed 27 Oct, 2021].

In-text: (SWOT & PESTLE.com, 2021)

Copyrights and Disclaimer

Inditex SWOT and PESTLE analysis has been conducted by Shalmali Chakraborty and reviewed by senior analysts from Barakaat Consulting.

Copyright of Inditex SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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