Zara international strategy pdf

This brand generates about twothirds of group sales by offering highly imitative fashion trends at affordable prices. Marketing mix of zara zara marketing mix and 4 ps of. This along with its logistics and efficiency are the keys to zaras success. Doc the strategic management analysis of zara relative. Anggita sulisetiasih 1006718706 kenji wibawa junardy 1006718990 patricia m. It is the strategy of developing new products to lure more customers including new and existing ones.

This case study has the objective of study zaras strategies, from their. 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. Rethinking their supply chain strategy, zara will face three challenges challenge 1 understand zaras current supply chain strategy challenge 3 craft a future. Zaras strategic capabilities and value chain analysis. 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. During the course international business and multinational enterprises the idea. Zara sells its products out of 2,000 stores in 77 countries. May 08, 2009 research on the internationalisation of retailing has been mainly focused on market entry issues. This strategy has worked and zara did not have to spend heavily on advertising like the big brands. In 2015, it added total 65 stores and 50 zara home locations. More than 95% of zaras sales revenue comes from its clothing business. Zara strategic plan 2015 by grisell rodriguez on prezi. Lecture notes case study zara case analysis strategy.

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. 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. This strategy is embraced to focus on the operations which can enhance cost efficiency while boosting service delivery and value proposition. The oil stain strategy as described by its management is the pattern of zaras international expansion. Much talked about, especially since its parent companys ipo in 2001, often admired, sometimes reviled, but hardly ever ignored, zara has been an.

Analysis of zaras fastfashion retailing strategy with fit shelley e. Rethinking their supply chain strategy, zara will face. Zara business strategy analysis linkedin slideshare. In this chapter a discussion about choice of methodology, research strategy, data. Zara has expanded globally fast and today it is present in 93 countries with its more than 2200 stores. 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. Inditex can sustain 6% to 9% growth for the next 10 years. Marketing problems and issues faced by zara marketing.

In a fast changing industry there is a big challenge to create a long term strategy. In consideration of optimizing development and training costs, the current pricing strategy is suitable for zara. A half a century later, it has become own of the worlds fastest growing manufacturer of affordable spanish fashion clothing. Zara provides latest fashion at much lower prices in all its international stores as compared to other competing international brands. Marketing strategy of zara zara marketing strategy. Estimates vary on the number of zara stores worldwide. Much talked about, especially since its parent companys ipo in 2001, often admired, sometimes reviled, but. Internationalisation of the spanish fashion brand zara journal of. Zaras core consumers are 2045 year old women, though they also have kids and menswear offerings. The intent of the meeting was to discuss zaras current strategy and. If you think zara does not do marketing, think again. Zaras secret to success retail its pricing strategy t1. 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.

Unlike brands that update only once a season, zara restocks with new designs twice a week, suzy hansen writes. 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. Internationalization strategy of fashion retailer zara nina leidiger term. The companys strategy involves stocking very little and updating collections often. Zara internationalization strategy catena giulia, fiorini chiara abstract. Zara business model, retail strategy and supply chain. An article in the new york times magazine november 2012, how zara grew into the worlds largest fashion retailer see reference in bibliography below, placed the store count at around 5,900. Internationalisation of the spanish fashion brand zara. How your belly controls your brain ruairi robertson tedxfulbrightsantamonica duration. Pdf analysis of the keys to zaras inditex successful. Doc the strategic management analysis of zara relative to. How retailers use emotion to make you spend more cnbc.

The intent of the meeting was to discuss zara s current strategy and. Word of mouth and social media have helped it achieve what other brands are struggling to achieve. Extensive market research providing a constant stream of inputs into the product development process, rather than in batches or discrete seasons. 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. Explain the target market and active customers of zara focus on the potential customers value proposition and the reasons why people prefer zara. Dec 30, 2018 market development is the strategy of entering new markets or geographic regions.

Brand communication strategies zara brand analysis. Compared with the competition, zara has three distinctions. Zara business model, retail strategy and supply chain management. Zaras secret to success retail its pricing strategy. Zara has cracked the formula to fashion retail success. Internationalisation of spanish fashion brand zara request pdf. Operations management of inditex and its retail zara. Analysis and recommendations of zaras strategic plan. Zara has satisfied the customers and has implemented strategies that made it possible to become dominant in the fashion industry. According to a study by cambridge university, people bought around 30% more clothes in 2006 than they did in 2002. This strategy is cheap but creates a long supply chain. All 68 countries are following the same concepts that are associated with the original brand. 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.

Highlight what are the strengths, weaknesses, opportunities, threats of zara. Zara made a rapid global expansion thanks to its experience on the international environment. Moreover, the brand has managed its supply chain so well that it product ideas take just. 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. 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 international expansion of zara started with the opening of a store in. It takes approximately four hebdomads to transport a container from spain to india. Therefore business continuity is more important than the overall it transformation costs. Competitive advantage in the marketing strategy of zara strong parent company. Zara is a popular spanish clothing store that uses a very clever marketing strategy to achieve its business goals. Research on the internationalisation of retailing has been mainly focused on market entry issues. Mar 18, 2016 zara s external and internal enviroment.

Dec 30, 2018 this strategy has worked and zara did not have to spend heavily on advertising like the big brands. Apr 23, 2018 analysis of zara s fastfashion retailing strategy with fit shelley e. For those drawn to the highend stores that want to pay lower prices, zara is nearby to oblige them. And speed it not limited to the design of ne w product. The elements supporting zaras business structure and strategy are also greatly interlinked and interdependent. Jan 26, 2011 the oil stain strategy as described by its management is the pattern of zaras international expansion. Zara has achieved this despite proudly claiming that they have never spent a penny on advertising. 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.

International strategy zara by cynthia wang on prezi. Zara was a pioneer in the fast fashion model, completely disrupting the traditional fashion industry. Conclusion references i think the core thing with the fast fashion guys has been their inability to localize product by specific region. Zara is ranked as one of the top 50 global brands in terms of brand value interbrand, 2009. After developing and gaining experience to operate locally in the country, they then proceed to have stores in adjoining areas. Zaras products are high on fashion and low on prices. Pdf analysis of the keys to zaras inditex successful business. Internationalization strategy of fashion retailer zara grin. Luxury brands have to admit zara has a strong position in the global market. 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. Although zara also makes home furnishing under the brand zara home, this only contributes 2.

Women bought around four times more clothes than they did in 1980, and they also dispose more clothes each year. Start writing about uppsala model zara with this example essay. Kohan, based on the 4es model of marketing, where experience replaces product, exchange in new price, evangelism is now. The international growth of zara mba knowledge base. 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.

Sep 02, 2018 competitive advantage in the marketing strategy of zara strong parent company. Rethinking their supply chain strategy, zara will face three. Zaras business operations and strategy how and why it. 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. Fashion cycles at zara are shorter and it takes only a few weeks for new fashion to arrive. 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.

The international expansion started with the opening of a store in. 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. Zara business strategy is pretty clear and straight forward. 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. In comparison to the other players in the market zara makes it new product available to its stores in just two. The salim group by you info here here international business strategy. Pdf inditex is the largest fashion distributor and retailer in the world, with eight brands. Consequently, zara has become spains bestknown fashion brand. Transferability zara has adopted several innovations that facilitate its transferability. Standardized store implementation t his enables zara to maintain its global image and store quality and quickly allows new store managers to focus on activities that drive store sales.

Zara has become an international brand but it is restricted to open new stores in different countries. The magic of zara has much to do with its tight supply chain, doiron said, which allows the company to manufacture clothes in small batches. Below is the pricing strategy in zara marketing strategy. The elements supporting zara s business structure and strategy are also greatly interlinked and interdependent. Timeline of zaras entry into international markets. 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. 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. Zara has been in the market for two decades and has developed its brand image in shoppers.

In the zaras strategy, the opening of a store in 1989 in newyork permitted to have an international prestige and to get close to the fashion trends. Most of the stores 90% are company owned and located near highend retailers that draw considerable traffic. Adam 1006805694 international undergraduate program faculty of economics university of indonesia. This global expansion was triggered by both push and pull factors. Additionally zaras pace of internationalization is analyzed. A key strategy used by zara to grow its market base and brand. May 02, 2016 zaras pricing strategy not only the value proposition is evident, but also is affordable to most customers. Zara s success is as much a result of its history and location, as its counterintuitive business strategies. Zaras pricing strategy not only the value proposition is evident, but also is affordable to most customers. Zara internationalization strategy giulia catena academia. It begins with the opening of a flagship store in a major city. International strategies transnational strategy zara seeks to achieve both global efficiency and local responsiveness.