PESTLE analysis of Inditex Essay - 2700 Words

The Inditex Group Inditex, Industrias de Diseà ±o Textil SA, is a group of almost one hundred companies dedicated to the different activities encompassed by the business of designing, manufacturing and distributing textile goods. The Spanish company was founded by Amancio Ortega, who remains the companys biggest share holder, in 1975 and started off as a family business. The groups achievements, together with the uniqueness of its business model which is based on innovation and flexibility have made it one of the largest fashion groups worldwide. The groups understanding of fashion, creativity and quality design and an agile response to the market demands have resulted in fast international expansion and a warm welcome of the†¦show more content†¦Socio-cultural Social issues include population demographics (such as growth rate or age profile), employment patterns, income levels and population health and education. The above affect the pricing of the product and how the product is advertised, for example. Cultural behaviour is not always easy to analyse as it comprises many underlying assumptions which are hard to change intentionally but which evolve over time (Mullins, 1985). Methods of conducting business are altered by these cultural concerns. Technological This refers to the means and the methods used to produce the product or the service supplied (Worthington and Britton, 2009). Although this involves more than information technology, IT is becoming increasingly important. An organisation needs to know what technologies are being used by its competitors in order to remain in the market and not fall behind. To make its product more accessible to customers, a firm must also know what technologies are being used by them and how these technologies affect the firms procedures. In a time where customers can read information on or buy products from firms around the globe, business conduct must adapt to technologies. This is discussed in Iammarino and Michies article (1998), which also states that technology, computing, telecommunications, broadcasting and so on have opened up the world economy. Legal There is an entire framework of legal requirements under which organisations are expected to run,Show MoreRelatedZara And Its Major Rivals1995 Words   |  8 PagesPorto, Portugal. Growth Inditex has grown by multiple measures. Sales at Inditex grew from $0.086 billion in1985 to $0.8 bfflion in 1990, $1.2 billion in 1995, $2.4 billion in 2000, and $8.2 bfflion in 2005. This pace of expansion contrasts with the more sedate growth of Gap (the world’s largest fashion company) from $5.3 billion in 1995 to $16 bfflion in 2005. The number of Inditex stores has mushroomed from 41 in 1985 to 424 in 1995, 1,080 in 2000, and 2,717 in 2006. Inditex employees grew from 1Read MoreHM Report2508 Words   |  11 PagesTable of contents 1. Introduction 2. Macro environmental analysis (PESTLE- political, economic, social, technology, legal, ecological) 3. Customer analysis 4. Market description 5. SWOT analysis (Strengths, weaknesses, opportunity, threats) 6. Conclusion and Recommendations 7. References P.1 D002 Read MoreFast Zara, Fast Fashion3460 Words   |  14 Pagesleading Zara succeed in Hong Kong. Background of Zara Zara is the flagship brand of the Spanish retail group, Inditex SA, one of the super-heated performers in a soft retail market in recent years. Inditex is very popular to investors because it seemed to have higher profit margins than comparable retailers and the trend seemed sustainable. Amanclo Ortega Gaona, the founder of Inditex, though that consumers would think that clothes as a perishable commodity, such as bread, to be consumed quicklyRead MoreThe Analysis of Zara4664 Words   |  19 PagesPGBM15 The market analysis of ZARA ______________________________________________ Student Name: Xia Tang Student Number:139151583 Tutor: Steve Storey Module Leader: Sudipta Das Word Count:4005 Date of submission: 16th June 2014 Contents Introduction of ZARA 1 1 Dynamics and trends within the marketing environment of ZARA. 1 1.1 Introduction of marketing environment 2 1.2 Macroenvironment-----PESTLE analysis of ZARA 2 1.3 Microenvironment analysis of ZARA 4 1.4 Poter’s