MARKET ENTRY STRATEGY CASE STUDY ZARA INTERNATIONALISATION IN CHINA

This form of marketing helps the customers to perceive a reduced risk related to their purchases. 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. Zara also has the ability to design and finish products to be deli8everd in stores within 4 to 5 weeks hence very quick to get designer-influenced products into their stores. Finally, strengths and weaknesses of Zara internationalization strategy are underlined to get a deeper comprehension of the Zara phenomena and to understand future trends and scenarios for the brand. Understanding internationalization patterns of Zara.. Zara internationalization strategy Giulia Catena

Enter the email address you signed up with and we’ll email you a reset link. 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. Journal of Fashion Marketing and Mangement, 13 2 , pp. The JV has helped the company to build relationship with Indian customers and establish the distribution function. Zara as a case study. Help Center Find new research papers in: Singapore to China case study.

Zara should be also watchful of product cannibalism and lack of vertical integration. The global dimension of the company gave to Inditex the resources to build a strong team for CSR that permit the initiatives and the data monitoring connected to this field.

market entry strategy case study zara internationalisation in china

Also, there is no doubt that it has helped the company improve its overall visibility. Another important technological dimension on Inditex group is investing on is the 12 Abnett Kate, Amed Imran, Inditex: 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. After selecting a market entry strategy I need to secure that my production must be demanded.

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market entry strategy case study of zara internationalisation in china

Strateyg strategy Analysing the marketing activity of Zara, it is possible to identify the stores as the first form of advertising and communication for the company while the word of mouth marketing is the primary strategy used in the online environment. Help Center Find new research papers in: Zara internationalization strategy allows the company to achieve a fast production and an international distribution of products, implemented by the creation of an international presence with wholly owned subsidiaries in the majority of foreign countries, joint venture agreements and franchising contracts in other countries.

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 foreign markets. The information in fact are used to create new lines and to modify existing ones. However, the idea of marketing as a standardised product with a uniform marketing plan is a misnomer.

Market entry considerations include economics both macro International Marketing-Zara Case Study. 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

On the other and, the little attention paid to the stratsgy of sustainability and social projects, is not strategic for the brand that can gain more trust and appreciation by customer. Nonetheless, the clothing brand could consider an online market and establishing a distribution center in the US.

The group was born in and in 1 Badia Enrique, Zara come si confeziona il successo.

The internationalisation of Zara seems On the other hand, deliveries are managed by external companies and travel primarly on roads However, it should be guarded against cannibalisation risks emanating from its e-commerce channels. However, Zara should be guarded against pressure on its supply chain owing to its rapid global expansion.

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This is due to the fact that stores are the first form of advertising for Zara, and word of month marketing is a quite effective strategy even in the online environment to reach global customers and to maintain existing ones. Click here to sign up. Conclusion Globalization has created new markets but has also resulted in increased competition and new challenges in the market place.

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It is a vertically integrated retailer and controls most of the steps on the supply chain. RFID tags are a technology that is put inside the security alarm from an experimentation in When it comes to market entry, the question now is what are the economic and political barriers that take effect on the strategy? Remember me on this computer.

Zara internationalization strategy | Giulia Catena –

Inditex group is involved in a lot of sustainable initiatives. Zara comes out with 11, collections fashion items per year as compared to its rivals who introduce two collections Temporal, It strateegy become a prime example of speed, agility, and innovation in retailing world. Understanding internationalization patterns of Zara.

Moreover, permit to enhance security control and to record data about sales to the technological headquarter This form of marketing helps the customers to perceive a reduced risk related to their purchases. Retail Market Entry Strategy in China.