In Appendix 1 which analyzed the operating and financial performance of the 4 companies in the year of 2001, we can see that H&M is the closest competitor in many dimensions, such as ROE, Gross and Net Profit Margin, etc. Also, H&M's focused approach to international market is more similar to Inditex's expansion style than the other two closest competitors.
Business Model of Zara
As the largest and most internationalized brand of Inditex's chain, Zara is the principle driver of the group's growth and play the lead role of Inditex's sales and profit. Zara's unique business model brings special interest of business studies and is often sited as "Dell in the fashion industry".
The core concept of Zara's business model is they sell "medium quality fashion clothing at affordable prices", and vertical integration and quick-response is key to Zara's business model. Through the entire process of Zara's business system: designing, sourcing and manufacturing, distribution and retailing, they presented four fundamental success