during 2000-2001, described as most innovative and

2001, IPO and operating over 1200 devastating retailer in the world by LV Capital CEO
stores in over 35 countries

by fiscal 2000, over half of Inditex sales were outside Spain

Inditex issue " how much of shift production was necessary ti
support Zara's expansion and to meet possible pricing pressures
? and how much of a shift could be made without undermining
zara's success"

in 2000 inditex had launch Bershka,

stradivarius, pull&bear, Massimo dutti&
oysho

1989, 82 stores in Spain and began

international expansion
portugal, paris and newyork
Amancio Ortega Gauna
opened first in1975 in La coruna
History
Outward Processing Transactions (OPT)
to eastern European and Meediterranean
rim Castellano

employed about 2 million people in 1999

Textile and Apparel industry proportion of outsourced manufacture would grow to 60%
in E.U and Spain Sourcing dilemma
E.U was the second largest exporter of textiles than of
clothing
competitive advantage that drove it margins?
Procurement and
leaders in high tech fibers and related technologies Outsorcing Strategies

Spanish textile and apparel

E.U strenth in apparel were design-driven manufacturing comprised mostly of many
very small firms after all the process, final inspection did in zara factories

notstrong in R&D and technological innovation

Two seasons: spring/summer and fall/winter

Ortega's home province, Galicia
promote concept of "Galician
Fashion"
all styles produces in relaticvely small batches
several large firms headquartered
in Galicia: like Adolfo, Zara, and
Caramelo

Zara Model design prepared by hand or using CAD

subcontracted the fabric to porrtugas due to low wages Store specilaist worked in same room with designer

Owned a fabric sourcing company in Barcelona hal of total Production sourcinng and schedullinh were third
party sources

In house production weighted 85

percent to in season production