Business Environment

Inditex Business Model
The Inditex Group was formally incorporated in 1985. But its origins as a fashion distribution group started ten years earlier when Zara opened its first store in A Coruña (Spain). Currently, it has eight retail formats that share the same vision of the fashion business, characterized by strong customer orientation. The group is involved in all the stages of the fashion process: from design, manufacturing and logistics, to sales in its own stores.
All of its operations are carried out from the perspective of ethics and responsibility. The Internal Code of Conduct and the Inditex Code of Conduct for external manufacturers and suppliers, as well as the product health and safety protocols (Clear to Wear and Safe to Wear) form a strategic axis of social management, while in the environmental area the activity of the group is governed by the Environmental Strategic Plan.
Inditex has been listed on the stock market since 2001 and is part of international indexes like Ibex 35, FTSE Eurotop 100 and Eurostoxx 600 and sustainability indexes such as FTSE4Good and Dow Jones Sustainability.


PESTE Analysis
The political situation doesn’t really affect when buying clothes. Moreover, nowadays Inditex has stores over the world, and a bad political situation somewhere could be compensated with a better one in another place.
Nevertheless, in those countries where the political situation is unstable or unfavorable, the sales may decrease. For example, this is the case of Spain, where the company made the biggest amount of money. At the time, this country suffers from a big unemployment rate, tax raises threats and this, makes people more conscious about saving money.
The economic situation affect directly to any company. At the moment the awful economic situation had forced many companies to stop their activity, what could be translated in fewer...