PESTLE analysis of Inditex Essay

2683 Words Nov 22nd, 2013 11 Pages
The Inditex Group Inditex, Industrias de Diseño Textil SA, is a group of almost one hundred companies dedicated to the different activities encompassed by the business of designing, manufacturing and distributing textile goods. The Spanish company was founded by Amancio Ortega, who remains the company's biggest share holder, in 1975 and started off as a family business. The group's achievements, together with the uniqueness of its business model which is based on innovation and flexibility have made it one of the largest fashion groups worldwide. The group's understanding of fashion, creativity and quality design and an agile response to the market demands have resulted in fast international expansion and a warm welcome of the …show more content…
Some legislative terms are closely linked to ethic-environmental or socio-cultural factors. That is the case of laws laying down maximum gas emissions, health and safety terms or human resources discrimination policies, for instance. The regulators of such legislations are often those holding political power at the time. Ethical- Environmental
This factor has become increasingly important in recent years but there is still a questioning of what is and what is not ethical since these considerations deal with the abstract terms of values, beliefs and behaviours which vary depending on culture. If ethical factors are managed strategically, the firm can achieve a competitive advantage. The fact is that consumers care as to whether or not a firm acts responsibly, taking care to address integrity, honesty and justice. This is explained in Porter and Kramer's article (2006).

PESTLE analysis of Inditex Technological Inditex has been used as an example of commendable use of technology throughout the years. In 1991, foreseeing the possibility of rapid international expansion, the group incorporated a series of Toyota robots into their manufacturing process. This allowed for a greater flexibility and for a production output which nearly doubled in the following two years. The complexity of the distribution system reached such levels of response that it was necessary to create a fully automated

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