Zara Five Forces Analysis Essay

The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Andres Mazaira A University of Vigo, Oureuse, Spain E - Zara Five Forces Analysis Essay introduction. Gonzalez A University of Vigo, Oureuse, Spain Ruth Avendano A University of Vigo, Oureuse, Spain Keywords Market orientation, Competitive advantage, Clothing industry, Organizational culture Abstract This paper has been developed as a part of research seeking to verify the effects of organisational culture in general, and market orientation in particular, on the behaviour and results of managerial organisations.

The difference with other existing work on the same subject is that this work uses the case method to bring managerial reality into closer contact with the university environment. This report contains the first of the case studies carried out in the context of this research, and examines Zara, a strategic unit in the Inditex group, which is shown to be a paradigmatic example of the development of market orientation in a company, as a basis for the company’s performance and competitive advantages.

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A study of business realities is crucial to bridge the distance between university studies and the business world and enable the student to realise that the subjects under discussion are not abstract, ideal concepts, but a reflection of reality (Munuera and Rodroguez, 2000, p. 15). A This case study is a reflection of this intention to bring the two worlds closer together, and uses the case method as an approach to the business world.

Although this method is more often used in teaching than in research, we agree with literature (Hartley, 1994; Yin, 1994; Bonache, 1999; Perez, 1999; Gummesson, 2000) on its A validity as a research strategy, especially for the study of organisational culture and its effects. The aim of this paper is to apply the case method to a study of market orientation as a characteristic culture in managerial organisations, and the effects of its implementation on the company’s behaviour and results. The present paper

discusses the influence of market orientation on managerial organisations through analysis of the Inditex group, with emphasis on Zara. Companyspecific literature has been used, including other case studies on the group, interviews, press and Internet articles, and reports by financial analysts[1]. Specific questionnaires were sent out to members of different departments of the store chains which compose the group, and in-depth interviews were carried out with Mr Fernando Aguiar[2], a company executive and university lecturer.

1. The Inditex group and the clothing sector Marketing Intelligence & Planning 21/4 [2003] 220-229 # MCB UP Limited [ISSN 0263-4503] [DOI 10. 1108/02634500310480103] Founded 38 years ago, the Inditex group is now part of a select group of companies The Emerald Research Register for this journal is available at http://www. emeraldinsight. com/researchregister worldwide whose success and personality have achieved an outstanding position in the media and in scientific debate in academia[3].

When the company was launched on the stock exchange, it published a complete company information brochure[4] which defines the main activity of Inditex (the acronym for Industria de Diseno Textil, SA) A and its subsidiaries as the design, manufacture, distribution and sale of clothes, footwear and accessories for men, women and children, including cosmetics and leather goods. Additionally, some of the companies in the group carry out different activities; for instance, construction activities or estate agency, as a complement to the Inditex group’s main activity.

Table I shows the companies (Spanish and other) making up the Inditex group. Inditex is an international fashion manufacture and distribution group (see Table II) with five store chains, Zara, Pull & Bear, Massimo Dutti, Bershka and Stradivarius. These are managed as separate strategic business units. On 31 January 2001, the Inditex group owned 1,080 stores (1,093 including joint ventures), in 33 countries. Of these 908 (84 per cent of the total number of stores) are owned by the company, and 172 (16 per cent) were franchised stores. Turnover in the year 2000 was slightly over 435,000 million pesetas.

Profits were over 43,000 million pesetas. Tables II and III show information on each of the chains. The world fashion market has changed considerably over the past few decades. Fashion products, which used to be an elite consumption product, are now a mass consumption market ± embodying what has been called “the democratisation process of fashion”. Fashion products are now bought by all segments of society, helped by lower average prices, which have brought about a The current issue and full text archive of this journal is available at http://www. emeraldinsight. com/0263-4503. htm [ 220 ]

Andre Mazaira, E. Gonza As Alez and Ruth Avendano A The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Marketing Intelligence & Planning 21/4 [2003] 220-229 broadening of the target by including a growing number of consumers in the market. Consumer tastes over the past few years have been veering away towards extremes. Stores offering latest fashions and stores offering lower priced clothing have taken market share from general fashion outlets, such as department stores, which were the main players up to the mid-1990s.

Today’s clothing and accessories industry is highly competitive, and increased competitiveness is to be expected over the next few years. One-brand store chains in particular have a tendency to competition for the same customer profile. They must also compete with local, national and international department stores, individual shops or boutiques, markets, and companies operating sales by catalogue or on the Internet. Competition does not affect sales alone. Stores also compete for the best store locations and good terms for rent or purchase.

New competitors are also a constant threat in a sector with very few entry barriers. The following trends may be identified as determinant factors for the sector’s future development: . De-localisation of textile and clothing manufacture in Europe and North America. . A strong increase in competitive pressure. . Company growth strategy and forwardlooking integration for clothing manufacturers. . Development of distribution chains. . Increased market participation for “killers”. . Growing internationalisation. . A strong commitment to flexibility.

Table I Companies (Spanish and other nationalities) in the Inditex group, 31 January 2001 Spanish Raw materials and manufacture Logistics Sales Comditel, Samlor, Trisko, Nikole, Choolet, Sircio, Zintura, Fioos, Hampton, Tempe, Denllo, Stear, Glencare, Yeroli Zara Logostica, Massimo dutti Logostica, Pull & Bear A A Logostica, Bershka Logostica A A Zara Espana, Kiddy’s Class Espana, Bretto’s BRT Espana, A A A Grupo Massimodutti, Pull & Bear Espana, Bershka BSK A Espana, Stradivarius Espana, Oysho Espana A A A Zara USA, Zara Argentina, Zara Venezuela, Zara UK, Zara Deutschland, Zara Canada, Zara Norge, Zara Danmark, Zara E Sverige, Zara Belgique, Zara Asia, Zara Osterreich Clothing, Zara Hellas, Zara Japan, Zara Luxembourg, Zara Nederland, Zara Fance, Zara Chile, Zara Mexico, Zara Uruguay, Zara Portugal, Zara Brasil, Zara Suisse, Za Giyim Ithalat Ihracat Ve Ticaret, Kiddy’s Class Portugal, Massimo Duti Deutschland, Massimo Dutti Hellas, Pull & Bear Portugal, Pull & Bear Hellas, Bershka Portugal, Bershka Mexico, Bershka BSK Venezuela, Bershka Hellas, Stradivarius Hellas, Stradivarius Portugal Zara SA (Argentina), Zara Holding, Zara Merken, Zara Vastgoed, Zara Financien, Zara Vastgoed Hellas, Zara Mexico, Vastgoed France, Zara Italia, Zara Nipon, Zara France Inmobiliere, Zara Vastgoed Ferreol, Vastgoed, A General Leclerc, Vastgoed Nancy, Zalapa, Vastgoed Asia, Invercarpo, Robustae SGPS, Massimo Dutti Holding, Zara Italia, Jose Maria Arrojo Aldegunde, Motorgal Other nationalities Complementary activities and inactive companies

Goainvest, Inditex, Zara SA (Espnola), Inditex Cogeneracion A A Aie, Lefties Espana A Table II International presence of Inditex stores Own stores Zara Pull & Bear Massimo Dutti Bershka Stradivarius Inditex group Source: Inditex (2001) [ 221 ] 410 199 119 102 65 908 Franchises 27 30 78 2 35 172 Joint ventures 12 ± 1 ± ± 13 Stores in Spain 220 165 137 83 87 692 Total stores 449 229 198 104 13 1,093 Countries 29 11 13 4 7 33 Andre Mazaira, E. Gonza As Alez and Ruth Avendano A The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Marketing Intelligence & Planning 21/4 [2003] 220-229

Table III Target audience, positioning and weight of Inditex stores Target audience age Zara Women (58%) ± Men (22%) ± Children (20%) Age 0-45/50 Women ± Men Age 14-28 Women (50. 8%) ± Men (49. 2%) Age 24-45 Women Age 13-23 Women Age 15-27 Positioning Quality: medium-high Price: medium-low Several product lines Quality: medium-high Price: medium-low Sports, leisure, fresh air Quality: medium-high Formal-informal designer wear Quality: medium Price: medium-low Latest trends ± informal wear Quality: medium Price: medium-low Latest trends Constant rotation Per cent sales 78. 2 Pull & Bear 6. 6 Massimo Dutti Bershka 7. 0 5. 2 Stradivarius 2. 8 Source: Research team, Inditex Information . Low fidelity levels.

“One-brand wardrobes” no longer exist, and companies seek to increase their share in customer wardrobes. Table IV shows details of some of Inditex’s main competitors. 2. From marketing orientation to market orientation The market-orientation construct originated in marketing orientation, which was developed in the 1950s on the basis of the assumption that: . . . creating a satisfied customer is the only valid definition of a business purpose (Drucker, 1954). Market orientation has been one of the most attractive research topics in marketing and management research during the past decade. It focuses on superior skills in creating customer satisfaction with positive impact on company profitability.

Market orientation is inter-functional, and requires co-ordinated behaviour across the organisation ± hence the expression “market orientation” instead of “marketing orientation”. Three main approaches have been used to define market orientation: 1 Cultural approach. This perspective considers market orientation to be a characteristic organisational culture[5]. Narver and Slater (1990) argue it is “organisational culture that effectively Table IV Zara’s competitors Source Year Sales (millions pesetas) No. of stores 474 1,898 3,676 444 682 1,093 7,000 567 511 186 No. of countries 1 21 5 10 14 33 120 8 49 11 Companies which distribute fashion and other products El Corte Ingles A 1 1999 1,630. 000 Carrefour 2 2000 6,256.

114 Fashion companies Gap C&A HM Inditex Benetton Cortefiel Mango Adolfo Domonguez A 2 2 2 3 2 3 1 3 2000 1999 2000 2000 1999 2000 2000 2000 2,152. 475 831. 930 663. 706 435. 049 329. 444 112. 237 128. 949 16. 155 Source: Inditex Notes: (1) Analysts’ estimation, (2) corporate Web page, (3) company accounts [ 222 ] Andre Mazaira, E. Gonza As Alez and Ruth Avendano A The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Marketing Intelligence & Planning 21/4 [2003] 220-229 and efficiently creates behaviours” in the organisation for creation of superior customer value (Narver and Slater, 1990).

Market orientation is: “the culture that (1) places the highest priority on the profitable creation and maintenance of superior customer value while considering the interests of other stakeholders; and (2) provides norms for behavior regarding the organisational development and responsiveness to market information” (Slater and Narver, 1995, p. 67). Market orientation’s key feature is held to be a commitment from all members of the organisation to continuous creation of added value for the customer (Narver et al. , 1998). Leading from this definition, Narver and Slater describe market orientation as a onedimensional concept, encompassing three behavioural components: customer orientation, competitor orientation, interfunctional co-ordination.

2 Behavioural approach. This approach focuses on market orientation as a measure of organisational behaviour (Norburn et al. , 1990). Key features of market orientation are: “(1) an expanded focus on market rather than customer intelligence, (2) an emphasis on a specific form of inter-functional coordination with respect to market intelligence and (3) a focus on activities related to intelligence processing rather than the effect of these activities” (Kohli et al. , 1993, p. 468). 3 A third type of approach is a synthesis of the above. Day (1994) holds market orientation to be a superior[6] ability for understanding and satisfying consumers.

Its key features are identified as first, an organisational culture that puts the customer’s interest first; second, the ability of the organisation to generate, disseminate and act on information about customers and competitors; and third, the co-ordinated application of interfunctional resources to the creation of superior customer value. This last approach describes market orientation in a business setting as a company culture[7] seeking to achieve superior value for the customer (when set against value offered by competitors) through co-ordinated behaviour across all sections of the organisation. and, specifically, the Zara chain, how far the group’s marketing strategies and tactics are different from competitors’, and what causes these differences.

There is strong media focus on the fact that Zara does not have a formalised marketing department, keeps its advertising budget to a minimum, and centres corporate success on production and logistics strategy. The inference is that marketing in Zara is non-existent. However, the Zara organisation clearly states: “Our customers are the basis and the reason of our group’s existence”. Close attention is paid to continuous information on customer needs and wants, and these are answered with clear market segmentation and product differentiation. Specific sets of behaviour across the entire company are designed to answer customers’ needs in an agile and permanent manner. This paper will seek to show that marketing permeates Inditex and Zara and is a determinant factor for its success[8]. Zara’s success is a direct result of market orientation.

Its implementation of the marketing concept and marketing philosophy go deeper than the functional view of marketing embodied in the marketing orientation. Perhaps better than any other existing Spanish company, Zara shows the step from marketing orientation to market orientation. Marketing orientation is an internal company orientation and is shown by the importance of the marketing department and the use of marketing tools. Zara goes a step further and shows successful implementation of a market orientation, as a business philosophy which focuses attention on customers and competitors and determines the working of the entire organisation. This paper will centre on the following three points: 1 Market orientation is shown to exist in Inditex-Zara.

2 This orientation is shown to determine development of its competitive advantage. 3 Competitive advantage is implemented through certain sets of behaviours which are determined by the market orientation. 3. 1 Organisational culture in Inditex/Zara 3. Inditex and Zara: a paradigmatic example of market orientation We will now discuss what marketing’s role has been in the evolution of the Inditex group Using the literature on the subject as a basis for observation, a series of values, beliefs and clear determinant basic organisational rules are to be observed in Inditex/Zara, which show the implementation of market orientation. [ 223 ] Andre Mazaira, E.

Gonza As Alez and Ruth Avendano A The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Marketing Intelligence & Planning 21/4 [2003] 220-229 A market-oriented organisation requires customer satisfaction to be its reference point. Customer satisfaction implies continuous, in-depth understanding of customer needs. Narver and Slater (1990)[9] point out how this understanding is necessary to identify existing and potential customers and focus on their present and future needs, and what perceptions will lead customers to feel satisfaction today and in the future. Deshpande et al. (1993) identify A market orientation as a set of beliefs which put customer interests first, in order to develop a long-term profitable business.

In Inditex, values and rules which put customer satisfaction first are present in the company’s definition of its business model: Customer orientation. The customer is our inspiration and customer service is our goal. Production shall be adapted to customer demand through supply chain control. Our own and our suppliers’ production will be able to focus on trend changes happening inside each season (Inditex). (i) The Inditex group and Zara have a group of values or basic beliefs which determine the organisation’s focus towards satisfaction of consumer needs (ii) Inditex and Zara’s customer orientation is understood as a tendency to generate value for customers which is superior to what competitor companies are able to achieve.

All departments in the organisation have a strong commitment to this principle In the field work, all interviewees from the Inditex organisation answered the question: “How far do you consider that offering the customer a higher value than our competitors is a source of competitive advantage for a company? ” with “totally”, the highest level on the seven-point Likert scale used. Narver and Slater show that an organisation adopts this behaviour when it focuses on the need to create greater value for consumers. Day and Wensley (1988) argue that to do this the company must develop the capacity to generate value on any point of the complete buyer’s value chain, and act accordingly.

A market-oriented organisation should be cognisant of the total value chain of its company, and act on its whole extent. Inditex/Zara’s concern with continuous analysis of its value chain has led the organisation to focus on control over the greatest possible number of links. Zara has established control over the total length of the production process, from inception of a product design to sale. This is a crucial issue in the group’s strategy and the main feature of its differentiation from its competitors (see Figure 1 and Figure 2). A customer-oriented culture has led Zara to become an integrated retailer, with control over the entire production process, from design to sale.

Development of a product from initial design stage to sale is set out in Figure 2 and shows precisely how the Zara model is organised. In other Inditex store chains, the group’s presence in the production process is weighted differently, as Figure 3 shows. Seeking to generate value for the customer, the company has developed its own business concept, which the group calls the Zara Concept. The Zara Concept implies a change in how the business and the product are considered. Fashion products such as clothing, accessories and footwear have traditionally been considered a durable consumption article. Inditex-Zara considers fashion to be a non-durable product, with a sell-by period between three and four weeks.

This principle permeates the whole organisation and is constantly pointed out as a key factor for success[10]. With this as a key point in the organisation of Zara’s value chain, time becomes an essential factor in Zara’s processes. Every effort is made to reduce the time which elapses between product design and availability for sale. Thus, Zara prolongs the duration of the production cycle for each season. On average, 85 per cent of goods are manufactured during the season when they are to be sold, after the company has proved acceptance by the market. This policy also affects purchasing, production and logistics policies, and the behaviour of the entire organisation.

Thus, market orientation drives creation of specific sets of behaviour which, in turn, create value for the organisation. 3. 2 Generating sustainable competitive advantage through the basic values and rules developed in Inditex-Zara Figure 4 shows how Zara prolongs the season’s production cycle over a greater duration than the textile industry standard. This originates Zara’s sustainable competitive advantage, which materialises in the company’s capacity for continuous adaptation of its offering to consumer tastes, with short-term adaptation to changing trends. This competitive advantage implies: . Stores are stocked with new articles several times a week. Customers perceive this and visit Zara stores continuously during the season. [ 224 ] Andre Mazaira, E.

Gonza As Alez and Ruth Avendano A The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Marketing Intelligence & Planning 21/4 [2003] 220-229 Figure 1 Value chain for clothing manufacture and distribution companies Figure 2 Flow chart across value chain [ 225 ] Andre Mazaira, E. Gonza As Alez and Ruth Avendano A The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Marketing Intelligence & Planning 21/4 [2003] 220-229 Figure 3 The production process in other Inditex chains Figure 4 Complete seasonal cycle [ 226 ] Andre Mazaira, E. Gonza As Alez and Ruth Avendano A The role of market

orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Marketing Intelligence & Planning 21/4 [2003] 220-229 . . . . New market trends are brought into the stores in an agile, continuous manner. The organisation has full, almost immediate capacity to answer the market. This is an essential factor in a changing sector. Agility is such that from product design to sale, only two weeks elapse for repeat orders or slight changes, and five weeks for new products. Stores are permanently stocked with successful products, even in the sales period. Risk in interpretation of fashion tendencies is noticeably lessened. So is the risk of accumulating stocks of failed products. Risk products are produced in-house.

Purchasing late in the season has favourable effects on costs, as suppliers are anxious to sell off materials before the end of the season. Further, continuous change in the stores’ products achieves a scarcity-opportunity feeling. In the words of a company executive (see Herreros, 2000): Customers who enter a Zara store and see something they like, know they have to buy it straight away, because it probably won’t be there next week. This competitive advantage is hard to copy by competitors, because its success is not simply a technical issue. It originates in the company’s strong identification with the values of market orientation and the Zara business concept. 3. 3.

Behaviours in Zara which derive from its characteristic organisational culture and allow competitive advantage to be sustained The presence of a clear market orientation has been confirmed in the Inditex group and Zara. Now, we will examine how specific sets of behaviour in the company are affected by this orientation. This discussion will centre on four points: 1 collection, dissemination and response to market information; 2 production; 3 product line strategies; and 4 price policy. or on successful television serials, competitors’ stores, stores in other trenddriven sectors, museums, and travel to fashion-sensitive areas, where presence in clubs, fashion centres, universities or markets is encouraged.

The second and most important source of information comes from Zara’s own stores and is based on Zara’s integrated retailer process and the organisation’s capability to reduce the time between design and sale. “Product-shop teams” are able to receive continuous information from stores worldwide. Each day, they check products’ success and examine the trends suggested by the store managers. This information is immediately transmitted to the purchase department, the design department (which works on three seasons simultaneously) and the production department. All three departments organise their work as a response to this continuous customer feedback.

Another important source of information are orders placed by store managers through their “Cassiopeia”, an instrument specifically created for placing orders and continuous collection of market information in the Inditex group. Stores place orders twice weekly, selecting products from an offer they are sent beforehand. Production plans are made up from orders. Logistics centres serve small volumes to ensure store managers are not able to stock up on best-selling products. So, information is captured daily and perfected twice a week. It is disseminated throughout the organisation and brings forth immediate response. If a product is unsuccessful, it is immediately taken off the market. Behaviour in this area is clearly market oriented.

On average, Zara places 10,000 different articles on the market each year (10,744 in 1999, 9,845 in 2000). Production The Inditex group owns 20 production companies. These are specialised according to garment type, e. g. one shoe company, two children’s clothing manufacturer, one shirt Collecting information Interviews in the group show that great importance is attached to obtaining market information. Two main sources of information have been observed. Information on market trends is collated by members of the design team. The team works on several sources of inspiration and information, such as trade fairs, fashion shows, books, observation of styles worn by opinion leaders

Table V Internal versus external production Companies in the group (per cent) 1998 1999 2000 53 50 44 External production (per cent) 47 50 56 Source: Inditex (per cent over sales out figures) [ 227 ] Andre Mazaira, E. Gonza As Alez and Ruth Avendano A The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Marketing Intelligence & Planning 21/4 [2003] 220-229 Table VI External production according to country of origin Spain (per cent) 1999 2000 25 20 Portugal (per cent) 24 22 Other EU (per cent) 9 5 Rest of Europe (per cent) 11 15 Asia (per cent) 23 29 Other (per cent) 8 9 manufacturer, one company specialising in men’s trousers and jackets. Other items are produced externally.

In the words of an Inditex executive: The decision whether to externalise or to produce in the group depends on cost, delivery date, returns [. . . ] We attempt to maintain a competitive feeling between all our suppliers, including our own factories [. . . ] In general, our own factories take on products with greater specificity and greater risk. Pricing policy As shown in Figure 4, in-house production originates competitive advantage by lengthening the seasonal production cycle and increasing the production rate at the end of the season. The increase in external production over the past few years is due to a trend in favour of basic products with lower added value (see Table V).

For in-house production, cut (which is labour-intensive) is outsourced to external sewing companies, mainly located in Spain and Portugal (see Table VI). Strict time limits are set out for the production process and force it to adapt to market needs. Zara’s role as an integrated retailer entails total control over the production process to ensure it is driven by customer needs and wants. Production costs are tailored to respond to customer needs and strict time limits are adhered to in order to ensure an agile response to market trends. Zara’s system for price fixing is different from the usual sector system. The clothing industry commonly uses a traditional cost plus margin pricing system. Zara uses a market-oriented target pricing system.

The sales department identifies the price consumers are ready to pay and the price of similar products in other accessible competitor stores, and establishes a target price for each article accordingly. To achieve this price, materials and suppliers are found to manufacture the product with the desired price and margins. The information is given to the company purchasing department, who are in charge of margin control. The Zara case is, as conclusion, a paradigmatic example, reflecting how a market-oriented culture, constructed from a clear target customer definition and an original market concept, generates sustainable competitive advantages and sets of market-oriented behaviours, and keep these up over time. Notes Product strategies

One of Inditex’s distinctive qualities is its focus on market segmentation through specific store chains which seek to adapt to market needs. Figure 2 shows how Zara’s store chains centre on specific targets, with different offerings which are tailored to each segment’s needs and wants. New markets were opened up in 2001 with the birth of a new chain of high-street stores, “Oysho”, with product categories such as underwear, evening wear, swimwear, accesories and cosmetics at medium-high quality and medium-low prices. The chain is to operate on an international scale, mainly in Europe. International expansion policy has also achieved an agreement for introducing Zara into Finland.

1 The Inditex group attracted analysts’ attention on its recent launch on the Spanish stock exchange. 2 We would like to thank Mr Aguiar for his invaluable help in carrying out this research. 3 Case books including a “Zara case” are increasingly frequent (see Duran, 1996; Lois A et al. , 2000; Munuera and Rodroguez, 2000). A 4 A document containing exhaustive information on the sector and the company. 5 Organisational culture as a dynamic aggregate of assumptions, values and mechanisms, the significance of which is understood by the organisation’s members. 6 Superior to competition. 7 Culture as a set of rules, values, attitudes and belief which determine the way organisations perceive reality and the way they act.

Culture is a substantial determinant factor for the company’s behaviour in its context. 8 Hooley et al. (1990, p. 22) reflect this concept of marketing when they argue that marketing should not be perceived as an exclusive departmentalised function, but as a philosophy which is able to guide the entire organisation. A visit to Inditex’s buildings or an interview with Zara executives show “Marketing is Zara and Zara is marketing”, in the sense used by McKenna (1989). [ 228 ] Andre Mazaira, E. Gonza As Alez and Ruth Avendano A The role of market orientation on company performance through the development of sustainable competitive advantage: the Inditex-Zara case Marketing Intelligence & Planning 21/4 [2003] 220-229

9 Narver and Slater include all activity directed towards the acquisition of information about customers and competition in the target market, and its spread across the organisation, as indicators of customer orientation and competitor orientation. 10 See, for instance, Vazquez (2000) or the A interview with J. M. Castellanos on Expansion, A 26 July 2001, available at: www. expansiondirecto. com/edicion/noticia/ 0,2458,14530,0. html Bonache, J. (1999), “El estudio de casos como estrategia de construccion teorica: A A Caracterosticas, croticas y defensas”, A A Cuadernos de Economoa y Direccion de la A A Empresa, Vol. 3, January-June. Day, G. S. (1994), “The capabilities of marketdriven organizations”, Journal of Marketing, Vol. 58, October, pp. 37-52.

Day, G. S. and Wensley, R. (1988), “Assessing advantage: a framework for diagnosing competitive superiority”, Journal of Marketing, Vol. 52, April, pp. 1-20. Deshpande, R. , Farley, J. U. and Webster, F. E. Jr A (1993), “Corporate culture, customer orientation and innovativeness in Japanese firms: a quadrad analysis”, Journal of Marketing, Vol. 57 No. 1, pp. 23-7. Drucker, P. (1954), The Practice of Management, Harper & Row, New York, NY. Duran, J. J. (Ed. ) (1996), Multinacionales A Espanolas I. Algunos Casos Relevantes, A Piramide, Madrid. Gummesson, E. (2000), Qualitative Methods in Management Research, Sage, Thousand Oaks, CA. Herreros, C.

(2000), “El caso ZARA”, available at: www. gestiondelconocimiento. com Hartley, J. (1994), “Case studies in organizational research”, in Cassel, C. and Symon, G. (Eds), Qualitative Methods in Organizational Research. A Practical Guide, Sage, Thousand Oaks, CA. Hooley, G. , Lynch, J. E. and Shepherd, J. (1990), “The marketing concept: putting the theory into practice”, European Journal of Marketing, Vol. 24 No. 1, pp. 7-24. Inditex (2001), “Folleto Informativo Completo (Modelo Rv)”, available at: www. cnmv. es Kohli, A. K. , Jaworski, B. J. and Kumar, A. (1993), “MARKOR: a measure of market orientation”, Journal of Marketing Research, Vol.

XXX, November, pp. 467-77. Lois, R. C. et al. (2000), La Industria de la Moda en Galicia, Idega, Santiago de Compostela. McKenna, R. (1989), “El Marketing a Medida: Oportunidad o Reto”, Harvard-Deusto Business Review, Vol. 39 No. 3, pp. 37-46. References Munuera, J. L. and Rodriguez, A. I. (2000), Estrategias de Marketing para un Crecimiento Rentable. Casos Practicos, ESIC, Madrid. A Narver, J. C. and Slater, S. F. (1990), “The effect of a market orientation on business profitability”, Journal of Marketing, October, pp. 20-35. Narver, J. C. , Slater, S. F and Tietje, B. (1998), “Creating a market orientation”, Journal of Focused Market, Vol.

2, pp. 241-55. Norburn, D. , Birley, S. , Dunn, M. and Payne, A. (1990), “A four nation study of the relationship between marketing effectiveness, corporate culture, corporate values and market orientation”, Journal of International Business Studies, Vol. 21 No. 3, pp. 451-68. Perez, W. (1999), “El Estudio de Casos” in Sarabia, A F. J. (Ed. ), Metodologoa para la Investigacion A A en Marketing y Direccion de Empresas, A Piramide, Madrid. A Slater, S. F. and Narver, J. C. (1995), “Market orientation and the learning organization”, Journal of Marketing, Vol. 59, July, pp. 63-74. Vazquez, S. (2000), “El Modelo ZARA” in Lois, A R. C. et al.

(Eds), La Industria de la Moda en Galicia, Idega, Santiago de Compostela. Yin, R. K. (1994), Case Study Research. Designs and Methods, Sage, Thousand Oaks, CA. Further reading Alvarez, L. , Vazquez, R. , Santos, M. and Doaz, A. A A (2000), “Analisis Cultural y Operativo de la A Orientacion al Mercado. Efectos Moderadores A en la relacion OM-Resultados”, Revista A Espanola de Investigacion de Marketing ESIC, A A pp. 7-41. Avlonitis, G. J. and Gounaris, S. P. (1997), “Marketing orientation and company performance: a comparative study of industrial vs consumer goods companies”, Industrial Marketing Management, pp. 385-402. Castellanos, J. M.

(1993), “Una Ventaja Competitiva: El factor tiempo. El caso INDITEX-ZARA”, Papeles de Economoa A Espanola, Vol. 56, pp. 402-4. A Cervino, J. (1998), “Las empresas de distribucion A A de productos de confeccion, un caso de A proyeccion internacional”, Distribucion y A A Consumo, Vol. 8 No. 38, pp. 50-67. Flavian, C. and Polo, Y. (2000), “Inditex (19941999)”, in Munuera, J. L. and Rodroguez, A. I. A (Eds), Estrategias de Marketing para un Crecimiento Rentable. Casos Practicos, ESIC, A Madrid. Narver, J. C. and Slater, S. F. (1998), “Additional thoughts on the measurement of market orientation: a comment on Deshpande and A Farley”, Journal of Focused Market, Vol. 2, pp. 233-6. [ 229 ]

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