1. What is the reason for the success of El Corte Ingls? How would you define El's strategy? English court? 2. What is El Corte

1. What is the reason for the success of El Corte Inglés? How would you define El's strategy? English court?

2.  What is El Corte Inglés doing differently in terms of its strategy concerning what you did previously?
 

3. What challenges are currently facing El Corte Inglés?

It all started on the bustling and commercial Preciados street in Madrid. The English Court it began its journey here in 1890 as a tailoring and clothing store for children, becoming a highly appreciated establishment among the neighbors where they went to buy clothes and fabrics to make them. Over the years, this small store developed thanks to its two promoters César Rodríguez and Ramón Areces, acquiring increasingly larger dimensions. So by For example, what was a limited company in the 1940s became a public limited company. At the beginning of the 50s, with its corresponding capital increase. Cesar Rodriguez he held the position of president and Ramón Areces, his nephew, held the position of General Director.
But everything was not a bed of roses for the fledgling store. Also in these years, competition was important and fundamentally, the main competitor that could make shadow was, Galerías Preciados. These warehouses already had a building large dimensions in which the sale was organized by departments, the latter really new for the sector and for its time; idea that was copied by El Corte English.

 

The competition between El Corte Inglés and Galerías Preciados, starting in the 1950s,  represented a true revolution in the distribution sector in Spain, as was the introduction of large-scale window dressing, shopping cards typical of the establishment, the massive use of advertising and advertising campaigns and on all the introduction of seasonal sales, a true commercial revolution. The following years were years of consolidation of the family business, opening its first establishment outside the capital, in Barcelona in the 60s. This growth unstoppable, although certain in that they based it on self-financing and in prudence in investment, contrasted with the more dynamic activity expansionist of Galerías Preciados, its constant competitor. But it is from the 80s onwards that El Corte Inglés began a more aggressive expansion which translates into new centers in Madrid and other Spanish cities, and also a impulse regarding the diversification of services and commercial formats. Between these strategic movements, the purchase of its eternal rival, Galerías Preciados, was found, which was already in serious economic difficulties. For the Corte Inglés, it meant a greater presence by adapting these properties, to social recognition and success economic that El Corte Inglés had already won.

 

Regarding its international expansion; begins in 1983 with the acquisition in the USA from Harrys Company, a mid-market department store chain surface. The success was not as expected and in 1998 through an agreement with Gottschalk Inc, the latter absorbs the former in exchange for ceding a stake to El Corte Inglés of 16% of its shareholding. This expansion in the US finally represents an investment failed when Got-tschalks declared bankruptcy in January 2009, causing a greater prudence in its international expansion that is only repeated in the format of large stores through the opening of El Corte Inglés in Portugal in 2001 and limits a lot in the small and medium surface format with Sfera as the only one project and preferably through franchises outside Spain and Portugal. (Source: International expansion of El Corte Inglés).

 

Diversification in El Corte Inglés
Currently, the group is made up of a significant number of companies among the that are found; Hipercor, Opencor, Supercor, Sfera, Bricor, Óptica 2000, and Telecor, which makes it the first Spanish distribution group and is among the leaders world of department stores. In addition to this diversification, more recently added the so-called Department Store, which focused on the sale of luxury brands (Annex I, trademarks of El Corte Inglés).

 

Culture of El Corte Inglés
As can be seen from the annual report prepared by the company, the values of this family business can be specified in the following statement: The El Corte Inglés Group maintains a solid business model based on a series of ethical and responsible principles, commitment to the client, respect for employees, and links with the social and environmental environment. On these pillars, The company has developed a Corporate Social Responsibility (CSR) policy which is integrated into its own management strategy and is part of daily activity of the business. During the more than seventy years of history of the Group, these principles have marked the path along which our business model walks, which, at the same time, has known how to adapt to the new trends and methodologies that come with a modern conception of CSR. The El Corte Inglés Group considers that a socially responsible strategy must affect the entire organization as a whole. That is why there is an integrated CSR Committee by management and with representation from all areas of the company's activity. Is a way to guarantee that these principles transcend all areas of activity and at all levels of the organization. In addition, and to gain operability, There are several interdisciplinary work groups linked to different subjects. related to CSR to facilitate the Social Responsibility Committee decision-making. El Corte Inglés is a member of the United Nations Global Compact, which means assuming as their own the ethical principles and respect for human, labor and environmental aspects that make up this international code.

 

El Corte Inglés and the customer
Based on El Corte Inglés' annual report, its strategy is to strengthen a relationship with the client according to the following criteria. The client is the axis of our activity; It is our priority and our reason for being. That is why the entire commercial strategy is developed based on your needs and your satisfaction, with proposals for quality, innovative products and services, with all security guarantees, and adapted to new trends and market demands. All decisions made have a single objective: to gain the trust of our clients and respond to them as they deserve because by trusting us, we make them grow. This mutual trust reinforces our commitments that are summarized in the motto: "If you are not satisfied, we will refund your money." As a result of the close relationship that we maintain with the client, during fiscal year 2011 we received more than 630 million of visits in all the Group's stores, most of which went to centers of El Corte Inglés and Hipercor. A large part of the customers have a purchasing card. Corte Inglés, which has almost 11 million users.

 

New technologies
Until 2010, El Corte Inglés' online business was based on the concept of virtual showcase, where you could buy those same existing products in the different stores, but it is from 2011 onwards that the group makes a change strategy when orienting this tool by placing the center on the client and their relationship  with him, having as its first result the creation of Primeriti (online sales club, whose objective is to sell stocks from big brands, achieving discounts up to 70%).
In 2011, the El Corte Inglés website received more than 122 million visits, 18.4% more than the previous year, and 3.8 million registered users, making it a benchmark of electronic commerce in Spain. In addition, the Group has pages specific to other lines of business, each of which offers what their customers demand, from information about offers or product promotions
even teaching guides, advice or news. (Source: El Corte Inglés).

 

One more bet
The economic crisis, fierce competition between distributors, lower prices overall, and smart customer purchasing have recently led the group to launch the white label of its products for sale in supermarkets. In a desire to compete with the strategic and skillful Mercadona, El Corte Inglés launches its bass brand cost, ALIADA, in an attempt to offer consumers the basic products of the shopping cart at more affordable prices. This new Aliada brand has an offer of 200 products, with dairy products, oils,
pastries, charcuterie, preserves, drinks, appetizers, etc. But it also extends to cleaning, perfume and drug products, and even pet food. The launch of the Veckia brand in cosmetics with 200 references and the Gals & Guys brand of youth clothing inspired by typically university college fashion, is a shows more of this distribution giant's commitment to the low-cost model.