Portal de Periódicos da CAPES

El Corte Inglés

2024; Volume: 31; Linguagem: Inglês

10.7263/adresic-31-282

2340-3144

Ignacio Urrutia de Hoyos,

Comparative International Legal Studies

Introduction: El Corte Inglés (ECI) announced on March 12, 2022, the closure of retail buildings and the layoff of 3,000 workers. Financial reports highlighted the financial crisis caused by the COVID-19 pandemic, competition from retailers, increased rental and wage costs, higher import costs due to the devaluation of the euro, increased debt due to business expansion, lack of investment in technology, and changes in consumer behavior. Objective: What were the reasons behind El Corte Inglés' failure to anticipate the rise of e-commerce? How did it face the challenge of technological changes? How did it adapt to the new value propositions offered to its customers? Methodology: The qualitative opinion research method is applied, encompassing variables such as barriers to technology implementation, the competitive talent of board members, and innovation in corporate culture. Results: El Corte Ingles demonstrates how the lack of adaptation to e-commerce led to a brand crisis. Management preferred to maintain the original corporate culture, prioritizing stability over innovation and adaptation to the environment. This resistance to change and the focus on preserving hierarchical structures hindered innovation and market responsiveness, highlighting a conflict between the established culture and the need for strategic adaptation, driven solely by financial pressures. Limitation: The difficulty in accessing key personnel for interviews is highlighted due to the organization's culture that highly values discretion. A case study with interviews of executives was initially planned, but these obstacles led to the adoption of a qualitative opinion methodology. Contribution: The contribution and originality of this study lie in addressing an academic gap, given the scarcity of research examining crises stemming from the lack of foresight in the e-commerce sector. This analysis, considering the importance of the company studied, allows us to develop an analytical model that can be used in future research. Additionally, it addresses the barriers to technological change and environmental adaptation, providing a comprehensive understanding of these challenges.