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Assignment of Marketing - Zara

   

Added on  2020-10-05

12 Pages3635 Words183 Views
Political Science
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Table of ContentsINTRODUCTION...........................................................................................................................1LITERATURE REVIEW ...............................................................................................................1DISCUSSION..................................................................................................................................7CONCLUSION AND RECOMMENDATIONS............................................................................8REFERENCES................................................................................................................................9Books and Journals ....................................................................................................................9
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INTRODUCTIONThere are many multinational organisations and companies which operates theirbusinesses in various countries or nations. These companies have head-quarter in a specificcountry that is called as its Home country. These sorts of organisations have many branches ordivisions in different countries all around the world. The present report is in context to a leadingcompany – ZARA, it is a popular clothing retailer leading in the industry globally. The companywas established in 1963 in Spain by Amancio Ortega. ZARA has more than 2000 thousandsbranches across the world, it is a well known distributor of high quality apparel. It also offers ahuge range of products such as collections for kids, women and men, in addition to this ZARAalso launched other products such as perfumes, cosmetics and other accessories that attractcustomers. The present report will analyse business environment and international conceptapplied by the cited organisation while operating its business in India. LITERATURE REVIEW Zara is a part of a retail group Grupo Inditex, known to be one of the fastest and largestgrowing clothing retail organisation in Europe. The group has various divisions or brands whichare popular for offering high quality products to customers. Zara has a great market position andalso has high demand in terms of luxury products and apparel. The clothing industry is currentlythe second largest sector in UK retail. The market-place has been increased recently with fashionproducts and brands as many Supermarket chains have launched their own clothing brands, Theentrance of new brands in the market has enhanced the competition which has affected manycompanies to develop effective strategies which can help them sustain in the market. Thecompanies are using international business concept which assist them in growing their marketshare by entering into the global market. Zara is a very popular brand and known for its high-quality and designed apparel, it was among the top 100 international brands in 2015. In respect tothe Indian regulations on foreign direct investment, the Inditex group combined with the TataGroup, India to create new joint venture in 2009. Inditex owns 50% of this partnership on theother hand Tata's subsidiary Trent ltd holds 49% of share because of various challenges theorganisation is facing. According to Zara professionals Indian market is a top priority among allthe countries in Asia. The most effective method to enter in Indian market is to collaborate ordevelop a joint venture with an Indian brand which already has an impressive brand value orimage in the market. With regard to this observation Inditex, Zara's parent company used the1
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method partnership and develop a joint venture with Trent ltd, a Tata Group company. Trent ltdis one of the most popular clothing distributor and has a high value in the market both locally andglobally. The major concerns Zara has while entering into Indian market were culture anddemography, Speaking of demography India has a high population of 1.2 billion. According tothe target market income becomes higher in India. Culture is a major concern while entering intoa new or foreign market, it must evaluate the beliefs and perspective of the culture. In Indiasocial security is given high attention therefore, Zara considered Indian culture and beliefs whileexpanding its business. ZARA is lacking good marketing skills and techniques which they would be using orutilizing so that weakness could be reduced. As it could be said that ZARA is having itsoperations in about most of the countries of world which would be hampering their quality ofwork. The economic and political conditions in India is hindering ZARA’s ability to manufactureas the demand for company and its products are been diminishing or fluctuation on very regularbases (author). This would be one of the reasons as to why company is planning to establish theirmanufacturing unit in India which is emerging economies of world.This kind of technique if they are using and applying with their decision making processthen it would be easy for them that they are increasing all strength which are there. ZARA couldbe saving their time in way when they are using this strength part they could be getting moretime utilising in more important and other parts. Whereas if they are not looking at theirweakness which are hampering them so it would not be focusing on what are the weaknesswhich company is having author. SWOT is methods of analysing what could more company findabout their negative and positive points and how could they gain all opportunities that is there.Other than this there are also some factors that are not been under control of company asthey are not been able to regulate those elements. These factors are analysed with help ofPESTLE which is mainly done in order to solve what the dimensions are of global leading firmZARA in India. As market of India is very much dynamic where many new type of technologiesand innovations are taking place as it could be included as most technological advance nationauthor. Other than this there are also many other factors like that of support of government,inflation, changes in tax rates and climate changes that are occurring within country or market of2
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