Can a clothing retailer famous for local, in-season production take advantage of lower wage costs abroad without hindering its competitive advantage?
Nelson M. Fraiman , Medini Singh, Carolyn Paris, Linda Arrington  | Summer 2008
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The Jerome Chazen Case Series

In 1975, Amancio Ortega Gaona, a former clerk at a ladies' apparel retailer, opened his first Zara clothing store in La Coruña, Spain. The company remained based in Spain's Galicia region even as it became an international chain, with more than 300 stores worldwide. The company's growth - and its ability to offer high-concept fashion at mainstream prices - is widely credited to its unique location and vertically integrated model of flexible production. But Zara is now considering shifting more of its garment manufacturing offshore, particularly to China. Will the move hurt Zara's image - and its competitive advantage? In this case, students learn about the sourcing dilemmas and margin pressures faced by an international retailer.

Case ID: 080204
Supplemental Materials: Teaching Note
This case is used in core curriculum

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