Case Study 3.1
Zumba: A dance phenomenon is going global
1. Which of the internationalization models presented in this chapter best fits the internationalization of Zumba?
1. The network approach model best describes the internationalization of Zumba. The key feature of the model is that the firm itself cannot succeed on its own, it is dependent on resources controlled by others. Similarly to the Zumba case study, they profit from their instructors, academy, instructors courses, monthly fees from instructors in its network and its brand merchandise.
To ensure advancement and competitiveness , it is important for the company to have a good relationship with their instructors as they are all interdependent on one another. The instructors would benefit the firm to new heights by spreading the product to a larger group of audiences as well. Hence, a continuous cycle of relationship and dependencies is required.
The industrial network differs from the hierarchy, it is not controlled by one unit from the top management. Instead, it is more flexible. In the case study, the instructors are considered independent business entrepreneurs. They are just required join as a member, take the course where licensed will be given and they can operate themselves to either freelance or to start their own workout class. This creates a more teaming, adaptive and egalitarian network. Nevertheless, they both rely on the other parties for support. As the Zumba's instructors deal with the consumers and followers directly, they serve as a representative to the community. Therefore, they need to be regularly updated and of the product and they rely on Zumba for the branding. Communication and coordination needs to be cultivated in order to provide good service and get results.
Zumba has also reached out internationally through informercials, penetrating into foreign markets. This approach is also mentioned in the network model. Hollywood celebrities has been seen interested and doing the exercise which gave exposure, acceptance and interest to millions of people. From the observations conducted, the Zumba case study and the network model internationalization seems to be similar.
2. Why has Zumba's global business model been so successful?
The expansion of Zumba has become very recognizable and in a such a short time span, it can be considered a born global. Other than the strategy they adopted, it was the channel they used to promote themselves that made an impact to the change.
Internet was a huge factor in contributing to the success of Zumba. Nowadays, information spreads easily unlike the past when it took a considerable amount of time to be shared. As mentioned, Zumba's popularity is due to the involvement of many celebrities that spark and interest in many people. These information is easily available and updated through social media, for instance, all the news and information on celebrities are accessible online.
Zumba fitness has also greatly benefited from internet advertising and social media. Internet advertising's flexibility and versatility quash other forms of advertising. The amount of people using search engines to find the products, information and services that they require has been on the rise. Many people stumble upon Zumba through Youtube, an online video channel. They also started their own Facebook page that has garnered over three million fans. They chose the right marketing strategy as social media offers the largest opportunity for entrepreneurs of all businesses to build their brands and businesses. Aids of smartphones, ipads, and other gadgets also increased the rate of transmitting information, enabling it to be readily accessible to all. Anyone, anytime at almost anywhere are able to watch the video online. It is also easily shared and can go viral effectively.
Often for born globals, sales and marketing activities through a specialized network in which they seek partners that...
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