Case Study of Zara: Grupo Inditex is formulated by an amalgamation of major high street names from across Europe, including Zara, Pull and Bear and Bershka, in total boasting stores across 68 countries. Coupled with this, is their keen eye for discovering new fashion trends and translating these trends from the catwalk to the high street, both quickly and affordably. Zara boasts a marketing strategy of firstly product variety with a focal point of ensuring speed to market.
It's owned by Indixt group in North West Spain. The very first Zara shop was open in and their specialty is frequent innovation of new product lines. Also they decided not to outsource their production to low-cost countries which is a trend in the same industry.
At the same time they followed up a special policy of investing on opening a new store instead of investing on advertising which ultimately causes them to spread their branch network and make their products available everywhere. Zara controls most of the steps on their supply chain. Also they get the customer feedbacks and respond to them in an impressive manner.
Through this, they are maintaining a loyal and frequently aware customer base. When considering about the internationalization theories, there are three main theories to be taken in to consideration.
The Uppsala internationalization model 2. The transaction cost analysis model 3. The network model The Uppsala Internationalization model In this model, a firm is willing to intensify their commitments towards the international market when they grow up by experience.
When they grow up their experiences in their own territory, they are tend to spread their business in to nearby markets and then to the foreign markets which got similar features to their operating country. Those similar features will be the culture, language and political system.
There are three stages in this Uppsala Internationalization model. These steps shows how a company moves to an international market. Zara's Internationalization Theory After Zara opened its first store in in Spain, Zara started to open up new stores in every high populated city in Spain.
When they covered their territory, they started to search for international opportunities in They grow up by their experience, expanded in their country and then reached the foreign markets.
They selected Portugal as their new destination as the culture and geography is almost same as Spain. While experiencing their first international experience, they had to change their business model accordingly.
They expanded to Northern Europe by opening a store in Paris, the capital of fashions.
Mexico was geographically in distance by they found it closer in culture. Through that the doors for South American market were open for them. With the help of European Union, Zara managed to expand their business in eight countries by overcoming the geographical and psychic distances.
When Zara opens its first store, the socalled flagship store, in a strategic area with the purpose of getting information about the market and acquiring expertise. The experience guides Zara in the later phases of expansion in that country. They used direct investments Hierarchical model to European countries where they owns everything and the geographical and cultural distance is low and they used intermediate model to reach the countries using franchises and joint ventures.
Countries like India would not be easy to reach by a foreign company but using their local agent Tata they could perform much easier.
By considering their movements, Zara was using the Uppsala Internationalization model so far and they have followed up the steps in that model to reach the international market.Published: Mon, 5 Dec Zara is a very powerful brand and influential in overseas markets as America, Asia, Europe and Africa.
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out from the Zara case in the context of ever changing international business environment and its industry structure: 1.
Short Lead times: Keeping up with fashion An Investigation of the Factors Affecting Customer Based Brand Equity: A Case of Burger King, Subang. Uploaded by. david. Sociologie de La Culture.
Uploaded by. david. Zara: Marketing in Fast Fashion A Case-Study Carolina Lago Barbosa Ortigão de Oliveira | (Zara being its main concept brand) with over stores in 86 markets worldwide (Exhibit 1 describes Inditex’s brands and store concepts), had a group worth of €15 billion.
Zara SA (Spanish:) is a Spanish fast fashion (clothing and accessories) retailer based in Arteixo in heartoftexashop.com company was founded in by Amancio Ortega and Rosalía heartoftexashop.com is the main brand of the Inditex group, the world's largest apparel retailer.
The fashion group also owns brands such as Massimo Dutti, Pull&Bear, Bershka, Stradivarius, Oysho, Zara Home, and Uterqüe.
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