ZARA: Fast Fashion

1- With which of the international competitors listed in the case is it most interesting to compare Inditex's financial results? Why? What do comparisons indicate about Inditex's relative operating economics? Its relative capital efficiency? Note that while the electronic version of Exhibit 6 automates some of the comparisons, you will probably want to dig further into them. Background: Inditex is an international fashion retailer that designed, manufactured and sold apparel, footwear, and accessories for women, men, …

…of scale. By centralizing, or at least creating a common party to handle all supporting function for the different chains, Indirex can make huge savings. By combining distribution, warehousing, purchasing, and other supporting functions, like financing, IT, .. etc of the different chains, Indirex would highly benefit of the savings resulting from the economies of scale that would be achieved as well as reducing the amount of redundant work being done by the different chains independently.