MARKET ENTRY STRATEGY CASE STUDY ZARA INTERNATIONALISATION IN CHINA

However, there are certain disadvantages which Zara face owing to its joint venture with Tata. Inditex requires high sustainability standards to companies that want to be its suppliers, also if they are in country with lower standards. This form of marketing helps the customers to perceive a reduced risk related to their purchases. Learning Points and Recommendations. Moreover, Zara introduced a page on facebook dedicated to Customer Care, where the company directly answer to all the complaints and the needs of customers. However, it should be guarded against cannibalisation risks emanating from its e-commerce channels. When long term working relationship with suppliers are possible, they help them to reach the environmental standards.

This incredible growth and progress has made Zara business model and strategy one of the most successful in the business world. The suppliers are distributed mainly in European Union suppliers and in Asia while factories are mainly concentrated in European Union factories , Est Europe factories and in Asia The globalization of new markets in fact, since from , always started with new openings of very attractive flagship stores located in the most important shopping street in the world. Understanding internationalization patterns of Zara.. Zara comes out with 11, collections fashion items per year as compared to its rivals who introduce two collections Temporal, At the later phases Zara moved toward geocentric orientation by adopting local solutions rather than merely replicating the home market. Zara is striving to meet customer needs by capturing customer feedback from every store and translating it into new fashion items.

Zara sells quality, fashionable products at reasonable prices and based on product positioning, Zara is cheaper than its leading rivals as Benetton and Gap.

An effective marketing concept should be based on the premise of cultural differences and guided by the belief that each foreign market is culturally and environmentally unique.

Started only in with Zara Home online store and in with Zara online shop17, in the website became available in 27 countries on the 80 where Zara is present with the traditional retail chain Tab.

Journal of Fashion Marketing and Mangement, 13 2pp. Enter the email address you signed up with and we’ll email you a reset link. Inditex group is involved in a lot of sustainable initiatives. Retail Strategy Module David F. Finally the company’s commitment in sustainable projects is a necessary activity to increase global recognition and to communicate a positive brand image of Zara in the international scenario.

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Zara is striving to meet customer needs by capturing customer feedback from every store and translating it into new fashion items. Then, investing on the expansion of its online platform in Zara could reach the customers located in small city centers or entdy geographically and culturally distant markets, like the Cinese one.

Unlike Zara, it outsources all its production from 1, suppliers located in the US and abroad Bharadwaj, et al. Also, as compared to its rivals Zara possesses a high degree control over the supply chain functions enabling the firm to have a faster turnaround. kn

market entry strategy case study of zara internationalisation in china

Success factors include cost leadership strategy, differentiation of strategy, efficient distribution, information technology and fast delivery of new products, designs and trends. The international success of fast moving fashion.

However, when also the E-commerce market will be saturated, probably Zara will need to develop efficient marketing strategies to distinguish from others fast fashion retailers.

Likewise, the clothing brand has the ability to launch new trends and designs in a much shorter period.

market entry strategy case study of zara internationalisation in china

This process allows the company to achieve greater flexibility and to get items in store within few weeks. After selecting a market entry strategy As such, market entry decisions are a multi-approach that requires careful consideration of the firm seeking to widen economies of scope and reach.

market entry strategy case study zara internationalisation in china

Inditex decided to diversify its brand portfolio as it wanted to increase its market share with the underlying thought that introducing the new brands will harm other competitors more than the company itself and in order to avoid cannibalization targeted different market segments with its different brands Bharadwaj, et al. At the later phases Zara moved toward geocentric orientation by adopting local solutions rather than merely replicating the home market.

Inditex requires high sustainability standards to companies that want to be its suppliers, also if they are in country with lower standards. It helps Zara stay ahead of the trend curve, enables it to design, produce, and distribute clothing within a very short time-frame, and enables store managers to reorder stocks efficiently with short delivery times.

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Help Center Find new research papers in: Also, there is no doubt that it has helped the company improve its overall aara. Zara Internationalisation 32, views.

market entry strategy case study zara internationalisation in china

It can be explained through the Uppasala model theory that explains how companies take gradual steps to increase their activities in strateby markets. Competing in the Global Marketplace. Zara adopted the first strategy for most European and South American countries which are perceived to have high growth potential and low business risk.

Gap spends a considerable amount of revenue on advertising activities unlike Zara which prefers to invest a percentage of revenues in opening new stores instead. Inditex group gain an incredible success in Spain where nine Zara shops was opened between and thanks to the method they developed able to be responsive to the customers demand. The group was born in and in 1 Internatoonalisation Enrique, Zara come si confeziona il successo.

market entry strategy case study zara internationalisation in china

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 Moreover, permit to enhance security control and to record data about sales to the interantionalisation headquarter Since Tata is already a very well- known clothing line intenrationalisation in India, Zara borrowed its knowledge and expertise to coin a strategy of combining local and global clothing lines, thus regarding cultural specifity as well as offering trendy international clothing for customers with Westerns orientation.