Zara's global strategy
Plan
Introduction…………………………………………………………………………………..3
The internationalization of Zumba…………………………………………………..…..…….3
Zumba’s global business model……………..…………………………..…………………….4
Conclusion……..…………………………………………………………………………......5
Bibliography……………………………………………………………………….……...….6
Introduction
This report analyzes the internationalization and the global business model of Zumba Fitness project.
The first section provides the interpretation of Zumba’s internationalization explaining what internationalization model was chosen. The second part emphasizes the success of Zumba’s business model.
Data and analytics are derived from primary and secondary research.
The report finishes off with a short conclusion on the success of Zumba’s project.
The internationalization of Zumba
There are three major models of internationalization:
Uppsala internationalization model
Transaction cost analysis model
Network model
Initially Uppsala internationalization model fitted best the internationalization of Zumba.
Zumba’s Uppsala internationalization model was based on: experiential learning and incremental decision-making process
This confirmation can be proved by:
The original plan of Zumba fitness was based on producing VHS workout tapes and DVDs of Zumba classes to sell in in the US. The sales of videos showing the techniques of Zumba dancing increased and Zumba fitness became popular among people who were willing to be Zumba instructors. Realizing this business opportunity Zumba fitness decided to provide Zumba fitness classes who are interested in dancing and sport and to create in the future its network of instructors, the so called ZINs.
The decision was made incrementally with no influence from competitive market factors but based on Zumba’s own experiential learning.
Psychic distance between home country and international markets (initially, before 2001 and at the very beginning of 2001)
Initially Zumba was not accepted and DVDs were sold unsuccessfully
Introduction…………………………………………………………………………………..3
The internationalization of Zumba…………………………………………………..…..…….3
Zumba’s global business model……………..…………………………..…………………….4
Conclusion……..…………………………………………………………………………......5
Bibliography……………………………………………………………………….……...….6
Introduction
This report analyzes the internationalization and the global business model of Zumba Fitness project.
The first section provides the interpretation of Zumba’s internationalization explaining what internationalization model was chosen. The second part emphasizes the success of Zumba’s business model.
Data and analytics are derived from primary and secondary research.
The report finishes off with a short conclusion on the success of Zumba’s project.
The internationalization of Zumba
There are three major models of internationalization:
Uppsala internationalization model
Transaction cost analysis model
Network model
Initially Uppsala internationalization model fitted best the internationalization of Zumba.
Zumba’s Uppsala internationalization model was based on: experiential learning and incremental decision-making process
This confirmation can be proved by:
The original plan of Zumba fitness was based on producing VHS workout tapes and DVDs of Zumba classes to sell in in the US. The sales of videos showing the techniques of Zumba dancing increased and Zumba fitness became popular among people who were willing to be Zumba instructors. Realizing this business opportunity Zumba fitness decided to provide Zumba fitness classes who are interested in dancing and sport and to create in the future its network of instructors, the so called ZINs.
The decision was made incrementally with no influence from competitive market factors but based on Zumba’s own experiential learning.
Psychic distance between home country and international markets (initially, before 2001 and at the very beginning of 2001)
Initially Zumba was not accepted and DVDs were sold unsuccessfully
Bibliography: Zumba website <http://www.zumba.com/en-US?utm_source=bing&utm_medium=cpc&utm_campaign=Brand%7CBrand%7CFrance&utm_term=zumba&utm_cid=cpc-Brand%7CBrand%7CFrance> The process model of internationalization <http://www.impgroup.org/uploads/papers/83.pdf> Uppsala Model and the internationalization <http://www.francescopignatti.com/francesco%20pignatti%20papers/The%20Uppsala%20model%20and%20the%20internationalization%20of%20fast-moving%20e-commerce%20companies.pdf>