Zara internationalization strategy catena giulia, fiorini chiara abstract. The company has already achieved its aim, now it must form new strategies to expand its market, as it has a wide number of skilled people in favorable countries available. Kohan, based on the 4es model of marketing, where experience replaces product, exchange in new price, evangelism is now. Zara strategic plan 2015 by grisell rodriguez on prezi. A key strategy used by zara to grow its market base and brand. Luxury brands have to admit zara has a strong position in the global market. Zaras core consumers are 2045 year old women, though they also have kids and menswear offerings. Therefore business continuity is more important than the overall it transformation costs. It is the strategy of developing new products to lure more customers including new and existing ones. The case of spanish fast fashion retailer inditexzara article pdf available in international journal of business and management 5. The companys strategy involves stocking very little and updating collections often. Dec 30, 2018 this strategy has worked and zara did not have to spend heavily on advertising like the big brands.
This along with its logistics and efficiency are the keys to zaras success. Marketing mix of zara zara marketing mix and 4 ps of. Zara business strategy is pretty clear and straight forward. Zaras secret to success retail its pricing strategy t1. More than 95% of zaras sales revenue comes from its clothing business. Zaras secret to success retail its pricing strategy. In a fast changing industry there is a big challenge to create a long term strategy. In 2015, it added total 65 stores and 50 zara home locations. Estimates vary on the number of zara stores worldwide. Zara s entry is a trial of whether its fastfashion construct will catch on in india. Compared with the competition, zara has three distinctions. International strategy zara by cynthia wang on prezi.
The salim group critical evaluation of success potential the salim group is so distinctly diversified in multiple industries, ranging from noodle and food production to chemical and property investments as a transnational company, that maintaining a singular business posture that is. Internationalization strategy of fashion retailer zara grin. Below is the pricing strategy in zara marketing strategy. Internationalisation of spanish fashion brand zara request pdf. In this chapter a discussion about choice of methodology, research strategy, data. Apr 23, 2018 analysis of zara s fastfashion retailing strategy with fit shelley e. Analysis of zaras fastfashion retailing strategy with fit shelley e. Zara sells its products out of 2,000 stores in 77 countries. Roll over the inventory at such a fast pace that consumers are actually scared that if they like anything will it stay till the next visit so that they buy it off. Zara s success is as much a result of its history and location, as its counterintuitive business strategies. Competitive advantage in the marketing strategy of zara strong parent company.
Operations management of inditex and its retail zara. Marketing in fast fashion in mid springsummer season 20, oscar perez marcote, director of the zara business unit at inditex since 201, sat in his office preparing for a meeting with inditex ceo pablo isla tejera. The oil stain strategy as described by its management is the pattern of zaras international expansion. The international expansion of zara started with the opening of a store in. Conclusion references i think the core thing with the fast fashion guys has been their inability to localize product by specific region. Pdf analysis of the keys to zaras inditex successful. This strategy has worked and zara did not have to spend heavily on advertising like the big brands. Inditex can sustain 6% to 9% growth for the next 10 years. Additionally zaras pace of internationalization is analyzed. Zara has been in the market for two decades and has developed its brand image in shoppers. Zara has satisfied the customers and has implemented strategies that made it possible to become dominant in the fashion industry. Highlight what are the strengths, weaknesses, opportunities, threats of zara. Dec 30, 2018 market development is the strategy of entering new markets or geographic regions. Moreover, the brand has managed its supply chain so well that it product ideas take just.
Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future. Zara has used almost a zero advertising and endorsement policy throughout its entire existence, preferring to invest a percentage of its revenues in opening new stores instead. Doc the strategic management analysis of zara relative. Zara business model, retail strategy and supply chain. Zaras strategic capabilities and value chain analysis. Clearly, zara is riding two of the winning retail trends being in fashion and low prices and making a very effective combination out of it. This case study has the objective of study zaras strategies, from their. May 02, 2016 zaras pricing strategy not only the value proposition is evident, but also is affordable to most customers. Much talked about, especially since its parent companys ipo in 2001, often admired, sometimes reviled, but. In consideration of optimizing development and training costs, the current pricing strategy is suitable for zara. Word of mouth and social media have helped it achieve what other brands are struggling to achieve. Women bought around four times more clothes than they did in 1980, and they also dispose more clothes each year. Zaras products are high on fashion and low on prices.
This strategy is embraced to focus on the operations which can enhance cost efficiency while boosting service delivery and value proposition. The intent of the meeting was to discuss zaras current strategy and. Zara provides latest fashion at much lower prices in all its international stores as compared to other competing international brands. Jan 26, 2011 the oil stain strategy as described by its management is the pattern of zaras international expansion. If you think zara does not do marketing, think again. According to a study by cambridge university, people bought around 30% more clothes in 2006 than they did in 2002. This brand generates about twothirds of group sales by offering highly imitative fashion trends at affordable prices.
Explain the target market and active customers of zara focus on the potential customers value proposition and the reasons why people prefer zara. Anggita sulisetiasih 1006718706 kenji wibawa junardy 1006718990 patricia m. Doc the strategic management analysis of zara relative to. Zara spends its money on opening new stores instead of spending a lot on ad campaigns. Zaras business operations and strategy how and why it. Zara made a rapid global expansion thanks to its experience on the international environment. And speed it not limited to the design of ne w product. Marketing strategy of zara zara marketing strategy. Much talked about, especially since its parent companys ipo in 2001, often admired, sometimes reviled, but hardly ever ignored, zara has been an. Inditex, the parent company of the brand zara have a strong portfolio of 8 brands which is helping the company in nurturing each brand with its experience and strong financial base.
A half a century later, it has become own of the worlds fastest growing manufacturer of affordable spanish fashion clothing. Timeline of zaras entry into international markets. Zara is the basis of inditexs success and their first retail format established in 1975 and the brand is the generator of about twothirds of the entire groups sales by offering fashion products that are trendy. International strategies transnational strategy zara seeks to achieve both global efficiency and local responsiveness. For those drawn to the highend stores that want to pay lower prices, zara is nearby to oblige them. Strategic plan 2015 presented by grisell rodriguez conclusion this strategic plan expresses zaras continued commitment to its mission and vision, to give the customer an exclusive choice of fashion by providing a quicker turnover of new stock than other fashion retailers. Zara s hallmark is its ability to plan, industry and present a new vesture design to its stores within merely two hebdomads, compared with a ninemonth industry norm. In comparison to the other players in the market zara makes it new product available to its stores in just two. Strategic supply chain management of zara fashion store. While it may not be possible for another company to exactly duplicate the conditions under which zara grew and flourished, we can certainly try and learn from its experiences, its processes and its business structures. Marketing problems and issues faced by zara marketing. Transferability zara has adopted several innovations that facilitate its transferability.
Zara business strategy analysis linkedin slideshare. The strategy that inditex uses may become more challenging as many of its retail products, such as those distributed to zara are accompanied by multicountry labels and can be redistributed to another store in some other country where they are thought to sell better, if any specific product line is not selling accordingly well in a specific. This strategy is cheap but creates a long supply chain. Consequently, zara has become spains bestknown fashion brand. Research on the internationalisation of retailing has been mainly focused on market entry issues. Zara was a pioneer in the fast fashion model, completely disrupting the traditional fashion industry.
Zara has become an international brand but it is restricted to open new stores in different countries. Zara internationalization strategy giulia catena academia. Zara business model, retail strategy and supply chain management. During the course international business and multinational enterprises the idea. Extensive market research providing a constant stream of inputs into the product development process, rather than in batches or discrete seasons.
Instead, the value of zaras brand comes from its supply chain and its ability to add value to every stage of the supply chain porter, 1985. Mar 18, 2016 zara s external and internal enviroment. Although zara also makes home furnishing under the brand zara home, this only contributes 2. Internationalisation of the spanish fashion brand zara. Internationalization strategy of fashion retailer zara nina leidiger term. May 08, 2009 research on the internationalisation of retailing has been mainly focused on market entry issues. Zara is a popular spanish clothing store that uses a very clever marketing strategy to achieve its business goals. Recommendations for it transformation zaras main strategy is the ability to give a quick answer to target customers demand and its capacity to anticipate the customers trends. All 68 countries are following the same concepts that are associated with the original brand. Zara has expanded globally fast and today it is present in 93 countries with its more than 2200 stores.
The analysis and recommendations of zaras strategic plan strategic position is concept which is concerned with the impact on the strategy of the internal resources as well as competences, external environment as well as the influence and expectations of the stakeholders. Fashion cycles at zara are shorter and it takes only a few weeks for new fashion to arrive. Lecture notes case study zara case analysis strategy. Analysis and recommendations of zaras strategic plan. Zaras quick response capacity is made possible by the fact that it controls the 3 main stages of its operations that define the competitive edge of the company.
Rethinking their supply chain strategy, zara will face three. This global expansion was triggered by both push and pull factors. Zara is an international fashion retailer which has gained considerable acclaim, being one of the leaders of the highstreet fashion industry, and regularly producing new products for the market, at a rate that is quicker than its competitors can achieve, due to the strong supply chain in place. Pdf inditex is the largest fashion distributor and retailer in the world, with eight brands. The salim group by you info here here international business strategy. The key difference lies with the fact that zara spend almost nothing on advertising, but rather focuses their brand communication strategy on real estate and word of mouth kalb, 2016. Sep 02, 2018 competitive advantage in the marketing strategy of zara strong parent company. The elements supporting zaras business structure and strategy are also greatly interlinked and interdependent.
Mar 23, 2012 the company reports that not only did it seek out prime real estate along established shopping corridors hello zara flagship on fifth avenue in nyc, it also changed up its retail strategy to. Zaras pricing strategy not only the value proposition is evident, but also is affordable to most customers. This paper attempts to examine the internationalisation process from an international marketing perspective using spanish fashion retailer zara as a case study. Zara marketing mix 4ps zara marketing strategy mba. Adam 1006805694 international undergraduate program faculty of economics university of indonesia. Brand communication strategies zara brand analysis. How your belly controls your brain ruairi robertson tedxfulbrightsantamonica duration. Zara has achieved this despite proudly claiming that they have never spent a penny on advertising. Pdf analysis of the keys to zaras inditex successful business. How retailers use emotion to make you spend more cnbc. Unlike brands that update only once a season, zara restocks with new designs twice a week, suzy hansen writes. With your download, get the 22 best papers relevant to this one, including 20 top related papers. Understanding internationalization patterns of zara. Rethinking their supply chain strategy, zara will face.
The international growth of zara mba knowledge base. A smart supply chain strategy, a retail strategy that is smarter than others and an ability to innovate have turned zara into a challenger for even. The company reports that not only did it seek out prime real estate along established shopping corridors hello zara flagship on fifth avenue in nyc, it also changed up its retail strategy to. After developing and gaining experience to operate locally in the country, they then proceed to have stores in adjoining areas. Roll over the inventory at such a fast pace that consumers are actually scared that if they like anything will it stay till the next visit so that they buy it off immediately on seeing. Internationalisation of the spanish fashion brand zara journal of. Start writing about uppsala model zara with this example essay.
This presentation covers the main characteristics of zara, a general view of fast fashion indystry, porters five forces analysis, competitors external environment as well as a complete internal analysis regarding. It takes approximately four hebdomads to transport a container from spain to india. It begins with the opening of a flagship store in a major city. Most of the stores 90% are company owned and located near highend retailers that draw considerable traffic. The elements supporting zara s business structure and strategy are also greatly interlinked and interdependent.
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