Zara Internationalization Analysis

Topics: Franchising, The Franchise, Franchise Pages: 3 (1112 words) Published: April 18, 2010
ZARA-Internationalization Analysis
When it comes to internationalization strategies, ZARA is the perfect case to look at. By putting in practice a set of different strategies, ZARA has accomplished great positioning worldwide and is one of the most recognized brands in the apparel market. Listed below are the main internationalization strategies ZARA has used to become one of the leading clothing brands in the world. Operating Filial

When ZARA first started opening stores outside of Spain, at the end of the 1980’s and beginning of the 1990’s, they looked for markets that resembled the Spanish market, had a minimum level of economic development and would be relatively easy to enter. The entry into the market would be decided by a team of economy experts from the headquarters that, after analyzing the micro and macro components of the market that affected ZARA directly, would say whether to enter or not. This analysis was made to see how much alike was the international market to the Spanish one. This allows them to, successfully, have the same products in the international market and the local market, distribute the same products between both markets, apply same decisions taken by the head offices and save money and time on flexibility between the international and local market. These key factors, allowed ZARA to have more control of its operations and an easier management. It is no coincidence then, ZARA’s first European stores (outside of Spain) opened with high success in countries like Portugal, France, Greece, Belgium and Cyprus. Joint Venture

A joint venture can be defined as an agreement between two or more companies through which they compromise to build a new firm to achieve a certain purpose. This kind of strategy allows the company to expand with limited capital investment, and therefore, to limit the risk too. The company can also be benefited from the partner's experience in a certain field. Making joint ventures with public foreign...
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