Efficiency, internationalization and market positioning in textiles fast fashion: The Inditex case

Abstract

Purpose

The purpose of this paper is to investigate the competitive position of the company Inditex in the period 1990-2013 as a case study, identified by academics and professionals as a successful company. The analysis has focussed on the comparison of Inditex with its competitive environment.

Design/methodology/approach

The methodology used to achieve the objectives was: data envelopment analysis for the analysis of efficiency and for the second the Tobit regression to determine the factors explaining efficiency. The authors have used additional methodologies such as social networks or cluster analysis.

Findings

The individual company analysis reveals that the average efficiency level by years for the period 1990-2013, is relatively high 88.8 percent. The determinants of efficiency have been; the resources of the company in terms of assets whose relationship with is U-shaped curvilinear, where the minimum value (trend change) is produced between years 2002 and 2003. The degree of internationalization of the firm, is positively related to efficiency. As the company increases its expansion, experience and skills, increases efficiency. Finally, the effect of liberalization of textile trade in 2005 had no influence on the efficiency levels.

Research limitations/implications

The limitations involving the methodology, in terms of representativeness, possible generalizations and type of secondary information used, can be offset by the ability to provide good vision and establish alternatives for possible studies.

Originality/value

This paper contributes to the fast-fashion retail industry literature by emphasizing the importance of the case study.

Citation

de Jorge Moreno, J. and Carrasco, O.R. (2016), "Efficiency, internationalization and market positioning in textiles fast fashion: The Inditex case", International Journal of Retail & Distribution Management, Vol. 44 No. 4, pp. 397-425. https://doi.org/10.1108/IJRDM-04-2015-0064