Background ofGlobalization
Globalization has a relationship with the appearance of neoliberal in order to revive the economy after theSecond World War. After the disappearance of trading walls, businesses try to set their target on international markets rather than domestic markets to increase profits. By businesses entering international markets, the world has become one community making busi
1. With which ofthe international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency?
GAP H&M Benetton Inditex
ROIC -0.15% 24.16% 11.20% 27.24%
Return on sales -0.06% 9.60% 7.05% 10.46%
COGS/sales 7
of economies of scale will result. A significant investment in capital goods in order to recover the large-scale production system does not possess is not. Therefore, in the same industry, companies in the domestic market demand just for the huge investments in capital goods alone, because it is difficult venture targeting theglobal market demand for capital goods are invested.
TheSecond fac
The first is pattern. Different from other fast fashion brands in Korea such as Zara and H&M which the sizes ofthe clothes are according to Western sizes, SPAO designs its clothes to better suit the Korean body shape. Therefore, SPAO eliminates the size problem such as sleeves too long, pants too long or shoulders too wide. Thesecond value proposition of SPAO is high quality material. In order
the level of reverse repos, particularly in Europe and North America, and a reduction in holdings of short-dated government securities in Hong Kong after the crisis.
Before and during the crisis derivative assets rose significantly, led by an increase in interest rate derivatives with further growth in credit and foreign exchange derivatives. Theglobal falls in interest rates resulted in signif