Set of Industry Analysis Templates †Free Samples to Students

Question: Discuss about the Set of Industry Analysis Templates. Answer: Introduction Inditex is a multinational clothing organization of Spanish origin which has its headquarters in Arteixo, Galicia. Inditex is considered to be the biggest fashion based group in the entire world and it operates more than 7200 stores in around 93 markets. The flagship brand of the group is Zara and is owns other chains like, Zara Home, Bershka, Massimo Dutti, Pull and Bear, Oysho, Stradivarius, Uterque. Majority of the stores of Inditex are corporate-owned in nature and franchises are operated in the areas or countries where the corporate properties are not owned ("Home uk - inditex.com", 2018). The unique business model that is operated by the organization is related to the commitment of the group towards the production of materials related to the current year rather than focussing on future fashion. The group started its operations in the year 1975 mainly in the clothing industry with its first store named Zara in Spain. The organization then opened more stores in the other areas of Spain as well. The group started its international expansion in the year 1989 and they entered the market in Portugal. The organization then expanded in the United States and France in the following years ("Home uk - inditex.com", 2018). The main focus of this report is to analyse the internal and the external environment of the Inditex group and the ways the environment of the organization affects its operations and profitability. The external environment of Inditex Group is mainly related to the several economic, demographical, social, ecological and management related factors. The external forces that affect the operations of the Inditex Group are mainly related to the economic forces, technological forces, competitive forces. The changes that occur in the external environment can affects the profitability of the Inditex Group. The cultural and the social changes have made major impact on the services, products, customers and markets. The changes in the political environment have affected the taxes that are paid by the group, the formulation of the strategies and the implementation of these strategies (Dobscha, Mentzer Littlefield, 2015). Analysis of the industry environment Suppliers The power of the suppliers of the Inditex Group is low as they have offered licenses to a huge number of suppliers. Buyers The various brands of the Inditex Group have a customer base which ranges from the middle class to the upper class people. The buyer power related to the Inditex Group is high. Threats of the new entrants The Inditex Group experiences high pressure related to the entry of new organizations in the fashion retail industry. Substitutes The pressure related substitutes of the services and products offered by Inditex Group is moderate as good alternatives are not always available in the market (E. Dobbs, 2014). The Inditex Group and the various that operate under this group need to face stiff competition from various other fashion retailers like, New Look, John Lewis, New Look, MS, Peacocks. The online shopping platforms have provided high levels of competition to the various brands that operate under the Inditex Group. Opportunities The search related to new market area of Inditex Group can provide the organization with great opportunities of growth. The organization can innovate the services and products that it offers and improve the quality of these products. The Group can also aim at adopting the new technologies that are available in the market. The customer services need to be more improved and dedicated. Threats The entry of new competitors in the retail industry has been a major threat towards the profitability of the Group. The increased price of the raw materials can also be a major drawback for the revenues of Inditex Group (Jackson, Schuler Jiang, 2014). The major resource that is owned by the Inditex Group are the loyal customers of its various brands. The organization has operated one of the most successful brands of fashion retail which is Zara. The products and the services have always been designed according to the preferences and choice of the consumers. The huge number of stores of the Inditex Group are the major tangible resources of the Group. Identification of the capabilities of Inditex Group The core strategy related to the operations of Inditex Group are the quick turnover their inventory, lead time, low volume of remaining inventory of each of the styles. The organization has been able to prove its core competencies and strategies by designing the products and services according to the latest trends and the preference of the customers (Sheehan Bruni-Bossio, 2015). Raw Materials The fabric is sourced in various colours and the cuts and designs of the products take place within the factory premises. Suppliers The suppliers of the organization are located close to the factories where the products of Inditex Group are manufactured and it helps in the easy sourcing on a need basis. Manufacturing More than 50% of the entire product range are manufactured in Spain and 25% comes from Europe as well. Warehousing The entire production of the organization is received from the warehouses in logistics centres in Spain. Distribution The products that are manufactured are distributed in small batches. The main categorization of the products is done in Spain. Stores The stores of the various brands under Inditex are all owned by the company. Consumers The customer feedback is communicated by the managers related to the likes and the dislikes of the consumers (Koc Bozdag, 2017). Identification of Strengths and the Weaknesses Strengths The market image of the various brands that operate under Inditex Group like, Zara is quite strong due to the style, quality and the availability of the products. The financial strength of the Group has helped them in investing in the various activities which can provide results. The diverse network of the organization and the strategic store location is another major strength of the Inditex Group. Weaknesses The high price of the products is major weakness of the organization as they do not compromise on their quality. The lack of proper marketing strategy is also a major weakness of the Inditex Group which can affect the operations in the market (Monteiro Birkinshaw, 2017). References Dobscha, S., Mentzer, J. T., Littlefield, J. E. (2015). 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