Zara have not shown business continuity in that the clothing company has relocated their production centres to Asia, changing everything that made Zara what it was. Zara first began as one store in A Coruña, created by Amancio Ortega in 1975. The spread of Zara has been shockingly fast, the company having stores now in seventy five countries. Zara’s business ethic was startling innovative within the clothing industry. Zara refused the industry-wide trend towards transferring production to low-cost countries and instead had all their production centres within Galicia, the region in Spain where Zara started.
Clothes were dispatched to villages and small town workshops where they would have the finishing touches administered, such as the sowing on of buttons. As a result of the production being so local, it took Zara just two weeks to develop a new product and have it in the stores ready to be purchased. This meant that Zara was always at the fore-front of fashion. Now Zara has moved production to Malaysia and China which means the shop cannot respond to changing fashion as quickly due to transport time, the quality of clothing has decreased, and Spanish people are no longer employed by the company.
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