Zara’s Sustainability Dilemma

As apparel retailing moved online, would Zara’s competitive advantage in traditional retail extend to e-commerce?

Vanessa Burbano, Bennett Chiles, Dan J. Wang  | Fall 2018
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While Inditex’s Zara concept had experienced significant growth in recent years, the competitive threats facing the business were only increasing. New entrants like Amazon’s Lark & Ro, a private label women’s apparel brand, had a similar style and target market segment. Additionally, new retail concepts such as Primark, that focused on low costs and low prices, were successfully making inroads with younger customer segments. As online and mobile technologies became an even greater driver of sales, how would this impact Zara? How would its unique business model withstand the ever-changing retail landscape?

Case ID: 190401

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