How customer behaviour can affect the sales and product production in Inditex

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How customer behaviour can affect the sales and product production in Inditex
This is an evaluative report that analyses Inditex. I choose this topic is because inditex is successful for many reasons, not only having trendy, well-made and inexpensive product but it´s ability to put costumer first. Therefore I am interested to find out how costumers can affect the sales and product production in Tempe for both good and bad way. After that I will formulate recommendations for operational improvement and strategic development.
1./ Situation Analysis:
Inditex is one of the world’s largest fashion retailers, with eight brands (Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe) and 7,405 stores in 94 markets around the world.
Strengths: Inditex is truly efficient in following its cost leadership strategy along with efficient distribution. They also knows the need of their costumer from different part of the world, in terms of physical, climate or cultural differences. It offers smaller sizes in Japan, special women’s clothes in Arab countries, and clothes of different seasonality in South America.
Weaknesses: Centralized distribution and lack of spending on advertising can have an effect on the future. Because of very short time from design to sale, target consumer and price, they can´t produce best quality product.
Opportunities: Global market penetration and utilization of online marketplace.
Threats: Competitors are cutting prices and refining their business models to cut the competitive advantage that Zara has, such as H&M and Mango.
1./ Objectives:
Through this essay, first I hope to identify both strengths and general weaknesses that customer behaviour can bring to my company. Second is to know about the production behind each product through primary and second research. Third is to formulate recommendations for operational improvement or strategic development to balance sales and product quality control.

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