During the recent years, Inditex has been posting strong gains in sales. Through its cheap Zara apparel chain, it was able to defy the recession that affected the world in 2009. As a result, it was able to challenge the big companies like Gap Inc. The improved results, highlighted how the company’s formula continued to operate during the economic downturn. As other apparel chains within the U. S., Asia and Europe struggled, the company registered gains in sales hence attaining higher gross margins (Rohwedder). The company’s lean inventory allowed it to evade profit injuring markdowns. As companies like Gap Inc. registered declines in their annual sales, the company posted gains.
In the recent years, the company has become famous for its low-priced options to the designer boutiques. It is to this effect that Zara stores occupied the world’s flashiest shopping streets. Inditex is currently known for giving people the latest fashion at affordable rates. This makes its products real alternatives to the expensive fashion lines. The company maintains high profits by reducing advertising costs and building low-cost perception. Zara brand took its marketing to the internet where it became an online phenomenon within a short period of time. By 2013, the Spanish fashion maker would have made approximately $ 2.5 million from its online sales. Despite the approximate figure, the company joined the online market late. Others such as Hennes & Mauritz and Gap Inc. were already on the market (Bjørk). Gap Inc. sold its first chinos over the internet in the United States in 1997. However, despite the rivals experimenting with the online selling and marketing, Inditex concentrated its efforts on increasing its presence physically by opening many stores.
Just as Inditex is fighting to take over the whole industry, Lenovo Group Ltd. is also fighting its way up the market against other top computer companies. To ensure its success, the company believes in its workforce hence the facilities, equipment and employees are a part of the company. Despite its efforts, the company is facing bigger challenges because the demand for PCs is reducing because the handheld gadgets have gained popularity. Therefore, the company considered building a brand that would be an important part of Lenovo. This will amount to higher market shares.
Works Cited
Bjørk, Christopher. 'Zara Wakes Up To The Web'. WSJ. N.p., 2010. Web. 27 Nov. 2014.
Rohwedder, Cecilie. 'Zara Grows As Retail Rivals Struggle'. WSJ. N.p., 2009. Web. 27 Nov. 2014.
Chao, Loretta. 'As Rivals Outsource, Lenovo Keeps Production In-House'. WSJ. N.p., 2012. Web. 27 Nov. 2014.
