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European Business and Brand Building

Edited By Luciano Segreto, Hubert Bonin, Andrzej K. Kozminski and Carles Manera

A strong brand is a key factor in business success, both in the short-term and in the long-term. Brands help to provide a better understanding of the corporate and commercial culture of different firms. A brand reveals the knowledge capital held by a company, but also often reflects the perception of the firm held by consumers and stake-holders.
The book explores the historical process of building some of the most famous brands among European businesses and examines the extent to which the brands have contributed to the image of the firms and their differentiation against competitors in the industry.


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CHAPTER 8 - Corporate Growth and Changes in Brand Identity. The Case of the Zara Group 187 - Xoán Carmona Badía


187 CHAPTER 8 Corporate Growth and Changes in Brand Identity The Case of the Zara Group1 Xoán CARMONA BADÍA University of Santiago de Compostela 1. A concise history of the Zara group Zara is the only Spanish brand to appear in the 100 Top Brands published by Interbrand-Business Week in its 2009 edition. It is the fifth most highly-valued brand within the clothing industry, preceded only by Louis Vuitton, H&M, Nike and Gucci. Since its first appearance in 77th position on this prestigious ranking back in 2005, it has recorded an uninterrupted upward trend that by 2009 had it placed in 50th position.2 Zara is, however, just one of the eight brands that belong to Inditex, a corporation from the Spanish region of Galicia, whose head-offices are in the city of A Coruña. Its origins date back to 1963 when Amancio and Antonio Ortega and their respective wives set up, under the name of Confecciones Goa, a small workshop for making ladies’ dressing gowns and nightdresses. Amancio Ortega, who in due course would become the head of the company, was 27 years old at the time, and although he had no formal qualifications in either design or business management, he did indeed have a great deal of experience in the clothing business, as he had already been employed in several stores in A Coruña and had worked as, amongst other things, a sales rep. For their part, the two women, Rosalía Mera and Primitiva...

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