MARKET ENTRY STRATEGY CASE STUDY ZARA INTERNATIONALISATION IN CHINA

Internationalization strategy and globalization Zara operates on the global scene through: Wholly owned subsidiaries, subsidiaries where the firm get the percent of the stock are located primarily in several European countries and in the U. However, it should be guarded against cannibalisation risks emanating from its e-commerce channels. Owned by Amancio Ortega, Zara, on the other hand, is a clothing company originated in Spain. Learning Points and Recommendations When in the process of penetrating a specific market, Zara should be guarded on issues of local competitions and how it affects global competitions. Zara is a fashion imitator and its competitive edge depends on understanding the current fashion trends that customers want and delivering it efficiently and speedily. In this incredibly technological center placed in La Coruna, data are collected, coming from more than stores, offices and logistic platforms worldwide, then, these data are matched and studied to make accurate statistics, in order to understand latest trends and to direct the production phase and all the other technologies

Choosing The Right Entry Mode The information in fact are used to create new lines and to modify existing ones. Owned by Amancio Ortega, Zara, on the other hand, is a clothing company originated in Spain. There are considerations, however, such as when selecting the Chinese market, labor cost and productivity, distribution cost and shipment cost of raw materials are considered. Inditex Group, the parent company, claims that Zara needed just a couple of weeks to go through the development of a new product and get it to the stores, compared to that of six months which is the industry average. Zara has been in market since two decades and

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Then, Zara strategy of internationalization is supported by an high technological development, that allows the company to monitor all the stages of the supply chain strictly. Help Center Find new research papers in: For instance, Zara could invest in partnerships with celebrities or famous designers in order to attract the global attention, but it is also important for Zara to communicate on the social medias its sustainable projects, as a way of making international customers more conscious of the company’s engagement in activities relevant for the whole society.

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This form of marketing helps the customers to perceive a reduced risk related to their purchases.

Zara is active in all the social media channels, the webpage of the company and the mobile application are frequently updated and propose new outfits, customers services and also a careers platform so they get high popularity on the web with million of followers on zraa social about 22 million followers on Facebook.

Chkna first step of any effective China market entry strategy is to identify However, it should be guarded against cannibalisation risks emanating from its e-commerce channels.

market entry strategy case study zara internationalisation in china

Case Study of Zara — Internationalisation in China. Help Center Find new research papers in: The second strategy is adopted for expanding the business in Germany, Italy and Japan. In this incredibly technological center placed in La Coruna, data are collected, coming from more than stores, offices and logistic platforms worldwide, then, these data are matched and studied to make accurate statistics, in order to understand latest trends and to direct the production phase and all the other technologies Thanks to RFID tags at different stages of the supply chain this technology facilitate the distribution, keep better track of the stocks taking and permit faster inventory checking rather in the past that thanks to the quick reading of the codes.

market entry strategy case study of zara internationalisation in china

Then, investing on the expansion of its online platform in Zara could reach the caae located in small city centers or in geographically and culturally distant markets, like the Cinese one.

International Marketing-Zara Case Study. This incredible growth and progress has made Zara business model and strategy one of the most successful in the business world.

Choosing The Right Entry Companies like Zara which have imbibed this philosophy in their marketing strategies have successfully expanded internationally. Market entry considerations include economics both macro MSc International Business Economics.

Zara should be also watchful of product cannibalism and lack of vertical integration. Case study ZARA internationalisation in china. Thesis Foreign Market Entry The strategic decision of an Internationalization of the Fhina fashion brand Zara. Zara is striving to meet customer needs by capturing customer feedback from every store and translating it into new fashion items.

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market entry strategy case study zara internationalisation in china

Introduction In the first part the essay analyzes the context in which Zara operates, focusing on how Zara has become one of the main fast-fashion brands in the world. Retail Market Entry Strategy in China.

market entry strategy case study zara internationalisation in china

Also, its internationalisation process has not been aggressive like Zara; Gap has been cautious in its approach and is focused only on large markets in developed countries. The quick-response capability of Zara is made possible by the three main stages that define the competitive edge of the company: The globalization of the production in Inditex happened primarily through wholly owned subsidiaries abroad, while the rest of production of Inditex Group is outsourced in Portugal, Morocco, Turkey, China, Bangladesh, Vietnam and Brazil 8.

Amongst the motivations to strategise are to grow fast ahead of the competitors, grow in the line with the industry or to simply catch up and defend an existing status.

Market Entry Strategy: Case study ZARA internationalisation in china – Research Articles Base

Introduction and Background Amongst the motivations to strategise are to grow fast ahead of the competitors, grow in the line with the industry or to simply catch up and defend an existing status.

However, it is possible to identify some limits of Zara’s strategy of internationalization and to underline the areas of interest where the company should invest, in order to continue its global expansion.

Zara as a case study. Inditex, Inditex annual report Moreover, Zara has a wider global presence than its competitors.

Then, Corporate Social Responsibility policies are considered because of the growing importance that they cover today.