Entry Mode
According to the Customer Service Model for Inditex the proximity to the customer is the most important factor when it comes to picking a location for a new store. The ideal location, in high-street stores, is always on prime locations, in which visibility and accessibility are guaranteed.
All decisions in Inditex revolve around the customer; they are at the center of all activity, at the heart of Inditex. The goal is to offer the customer the best possible experience in his or her visit to the stores .
“The inditex business model has a vertical organization in which the decision making process is subordinate to information on the tastes of their customers”
The store represents a pleasant environment where customer meets fashion. Everything is thoroughly thought of, for this reason every store has the same layout throughout the world, minimalist and clean cut because people are more hesitant to change overall and are more receptive to the familiar. Even though Inditex believes in limiting the customer on variety, it is the customer that determines the next trends to come.
In order to maintain uniformity for all POS the furniture is all manufactured in the same place and flown out to all locations.
Timeframe/General “Plan of Attack”
We chose the city of Lima as our first Entry Mode city in Peru because we are sure we can match the criteria established by the Inditex Customer Service Model in this city.
Lima is the capital of Peru and has a population of 8 million people. Amongst the 8 million people that live in Lima 23% are considered Upper Middle class and 1.8 million own homes.
We decided we would open our first stores in Lima in Malls.
Usually Zara stores are located in large Ma ...