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Outsourcing/Franchises vs. Own Manufacturing/Retail Outlets

For its Zara brand, Inditex manufactures the majority of the garments sells and undertakes all of its own distribution from manufacturing plants to its directly managed retail outlets. Benetton outsources most of its production and most of its retail outlets are owned and operated by franchisees. Which is a superior system?

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For its Zara brand, Inditex manufactures the majority of the garments sells and undertakes all of its own distribution from manufacturing plants to its directly managed retail outlets. Benetton outsources most of its production and most of its retail outlets are owned and operated by franchisees. Which is a superior system?

The Inditex system appears superior because it allows the company to maintain complete control over the process from beginning to end. There is no doubt as to the labor involved with ...

Solution Summary

This detailed solution outlines which is a superior system: Inditex who through their Zara brand manufactures and distributes all of its' garments to directly managed outlets or Benetton who outsources most of their production and has stores owned by franchisees. It includes links and examples.

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