The nature of business for Inditex Company is unique as it operates as a fashion house for different brands in through a set of retail chains. The company manages multiple chins aside from Zahra as well, but the main flagship business and brand for the company is the Zara fashion retail china. The reason for this is mostly because of the fact that the company has been focusing since its inception to leverage Zara as a premium brand in the market, relative to its other chains.
One of the main threats as mentioned above is that the excellence of the individual chain of Zara has overshadowed the performance of its other fashion retail business. This is mostly due to the reason that the company has been focusing on maintaining the position of Zara in the market while creating a strong position for it. This has taken resources and attention from other chains, resulting in their non popularity comparative to Zara in the market. Therefore if the company were to start managing its other retail chains in a better manner, the performance of the Zara chain would be inadvertently affected as the company would be shifting its focus and funds from Zara to other businesses. This would be complicated by the large scaled expansion of Zara in the global market which can create problems pertaining to lack of system, data and strategy integration as well as isolation of Zara operations in the different parts of the works with a resultant comprise on the quality of the chain and its products.
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