Case Study on Zara - Assignment

Title : ZARA

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1-...........................................................................................................................................1
Explaining the role of an acquisitions and merger and analysing the key point analysis of the
businesses...............................................................................................................................1
TASK 2............................................................................................................................................6
Analysis and evaluation of chosen business or international operations...............................7
Analysing the way Zara addresses the key as well as current issues in international operating
environment..........................................................................................................................16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
International business plan is the set and systematic plan for the business that grow up the
business opportunities in the global market. Business organizations developed plan with their
aims, objectives along with resources and determine in which market they will enter. In such
process, company enters into international market with their product or services to reach the
clients/customers. The purpose of the new business plan is to prepare company to enter into the
global market place to maximize the profit and global reach. Such present chosen company Zara
will plan to explore the business opportunity and launch the new product in the Asia market.
Further, report will explains the role of acquisitions and merger to analyse the consultancy
outputs in the great context. The aim of the study is to describe the internationalisation strategy
in order to using a variety of analytical frameworks which is looking at both management
specific factors. In order to analyse the market opportunities and threats of the business
environment study applying the marketing models as well such as PESTLE, Mackenzie seven,
Smart objectives, macro and micro analysis about the strategic business units.
TASK 1-
Explaining the role of an acquisitions and merger and analysing the key point analysis of the
businesses
Merger and acquisition is a general in terms of using describe the consolidation of
companies or assets through various types of financial transaction including merger, acquisitions,
consolidation of companies or assets through various types of financial transactions. In order to
take over the business of other is known as Acquisition. Or on the other side, when two
companies mutually ready on the set standards this is called mergers. In order to get the global or
international market most of the company take help of such methods either they take over the
other company or they merge with leading companies.
In order to take this research further here is the brief summary or introduction of the
chosen company.
Overview of the company
ZARA is the international brand based in Galicia. ZARA deals with range of products in
clothing, accessories, shoes, swimwear, beauty and perfumes. This would help to continue the
work opportunity and goals. It is the most branded and premium brand in clothing industry that
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always come up with new trends and fashion which is unique and distinct. Inspired story of the
business is said by Edison that ZARA has be expand from the Spain market to the other market.
ZARA is the most effective and attractive brand which is also demanding and favourite for the
people. ZARA known for its eco friendly company culture because company invested in solar
panels and wind turbines in the main office. There one thing about ZARA that is surprising
which requires to be more energetic and effective besides that it will help to continue the work
outcomes and effectively done in precise manner.
ZARA has stores in more than 88 countries with just over 6500 outlets. Zara has
flagships stores on Fifth Avenue in New York, Oxford Street in London. Zara has their own
mobile application app through they provides their product or services. In the context of the
business products or services so the ZARA sells to both women's or men's with high range of
effective learning outcomes and business opportunity.
ZARA has planning to offer Bathroom sleepers for both men's or women's. As per the
reports Zara India rise 72% profit in the financial year of 2018 (Financial Express, 2018).
Annual report of Zara Company
It has been identified by the Zara Annual Report 2018, that Zara focused on its core
priorities in order to integrated supply chain management, socially responsible towards the
customers and societies also it maintained the excellence in its products as well. However, Zara
overall performance in 2018 was very nice in terms of fully integrated with digitalisation & fully
sustainable growth. Zara revolutionised its customer purchasing habits which shaping new
expectations for products. In past 6 years Zara has invested more than €9.4 billion on the
company's growth and transformation, €2 billion of that total sum been earmarked to introducing
ground breaking technology into the model. Therefore, In 2018 Zara has almost raised capital
expenditure to €1.6 billion.
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Economic Scale of Zara
Spanish fashion brand Zara Economic scale quite excellent. Zara is famous for its rapid
changes in the fashion styles and come up with the new styles and trend. It spread its reach
across the world. Zara is the leading brand from the other brands like H&M, Gap, etc.
Positioning of Zara as compare to other brands
As compare to other brands like H&M, M&S Zara makes the customer experience king
because its capitalise on the store experience by continuously offering reasons for customers to
visit the stores and catch the trendy collection from the store. Unlike other brands Zara exchange
with customer for value because Zara having the unique understanding of the entire value
proposition it exchange with the customers. Zara is not the cheapest in the fast fashion arena but
they delivers the high quality standard value products with high appealing prices.
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Illustration 1: Price performance
(Source : Annual Report. 2018)

As per the above data both the brands are having different aspect of the product value
with different segments where the H&M drop from $19 billion in 2018. on the same hand, Zara
is currently sitting at a brand value of $18.4 billion (The difference between the two successful
brands. 2019).
Market share value
Market Share of the company is high and stable as compare to other brands because of
the strong brand value and preposition. Zara almost provides their collections in more than 202
markets out of which 47 still not getting the online shopping options.
Overview of the South east Asian Countries
ZARA is planning to launch the new product line business by launching the bathroom
sleepers in Malaysia. it is the home of several emerging market countries making the region of
the most dynamic in the world. This is the huge market where the company get highly beneficial
to earn maximum profit.
The benefits of Asia market is strategic location, the relative ease of doing business,
affordability, stable legal, political and economical environment.
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Illustration 2: H&M and Zara
(Source : The difference between the two successful brands, 2019)

ZARA can successfully achievable their set goals and objectives with high working with a local
partner. This might helpful for the company to get the basic knowledge of the local market or to
identify the current needs and wants of the customers. This business opportunity is the most
beneficial and effective for the country to gain advantage. Another way to get successful in the
Asia market by getting the deep understanding of local society that are difficult form country to
country.
Malaysia Market
Malaysia is one of the most leading and growing business market. Besides, Malaysia is
the middle income country that consistently shows a robust growth. For ZARA Malaysia is the
most preferable choice to gain profit maximization goals. Guided by the government which aims
at making Malaysia a high income country by 2020 along with high economic development plan.
Malaysia is inspired by the high modernization (Overview of Business In Malaysia, 2019). That
the economy is pushed towards the higher value added industries and services. It is the most
growing business gain through company can get the more developing results for the
organization. Business Asian business market belongs to the different range of styles. In order to
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attract the customers of Malaysia ZARA needs to put some efficient learning and efficient out
goals and business opportunity task. Provides the best and successful objectives will enhance the
business in Malaysia and consolidate the place as pillar of country expanded business.
TASK 2
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Analysis and evaluation of chosen business or international operations.
ZARA is the well known brand in the clothes and accessories all across the world. It is a
popular fashion designing and manufacturing company (Alon and et.al., 2016). Zara has always
come up with new different unique styles that better understand the opportunities and goals to
make the new emerging styles and to attract the customers and global buyers. There are different
international strategies that company could adopt for entering into the international market.
Chosen Product
After launched clothing, accessories ZARA planning to launch the Bathroom sleepers.
ZARA launch the Bathroom sleepers which made by the smooth and soft fabrics with high
quality material. It helps customers to get comfort and give the best outcomes from the
customers.
Zara International operations
Zara has almost 6300 stores in 88 countries as according to the revised data. It holding
the international position in order to reach the market opportunity (Guedes, 2016). Through
business model of ZARA it aims is to maintained the sustainable market position. ZARA also
having a Inditex business opportunity and gained the leading business opportunity. That makes
the business more effectively and leading business opportunity. More than 5000 employees
across the various departments work here. The site is also home to 10 of Zara factorise and its
largest distributors and leading business markets. Zara is the international fashion brand of
Inditex. Nowadays buyers want to see a new trends quickly.
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McKinsey 7S Framework
It is a management model in order to developed the business consultants and reviewing
an organisation marketing capabilities from the different viewpoints (McCloud, 2018). There are
seven model of McKinsey that evaluate the company effectiveness and evaluation process.
Strategy : Strategy define the key methods that company adopts in order to accomplish the aims
and objectives. Zara maintained the quality of product or services and always launch the trendy
collection. Such as new launch of Zara is bathroom sleepers with high quality stuff this strategy
of Zara can give high sales profit to the company.
Structure : Structure model define the company resources and also define the position that
occurred the business opportunity gain. The organisation structure of the business also very
much essential to define the best strategical strategy that helps to be more effective and learning.
Organisation structure can helpful to support Zara and helps in promoting the new product in the
market.
Systems : Business processes and the technical platforms used to support operations
(Pourhoseingholi, Vahedi and Baghestani, 2015). Zara is well established in terms of technical
which immediately solves the customer technical issues into best manner. However it certainly
affect the business if company fails to meet the technical requirements of the customer such as
online shopping. Zara provides the 24 hour services to their customers in case of any query and
issues. Systems can helpful or beneficial for the company to support the new strategy of the
business which is bathroom sleeper. New concept or product of the company enable to achieve
the higher customer satisfaction.
Staff : Staff are the real supporters of the company that makes the company number one and
leading. Zara maintained the professionalism within the outlets that makes customer happy and
satisfied. Skilled and qualified staff can helpful to support Zara to accomplish the process of new
project in system manner. Besides, qualified staff is very useful for the organisation to create
new business plan.
Skills : Capabilities to complete different activities. In other words, skills and knowledge of
employees and business makes business different from others. It makes the business unique and
different from other brands (Rasnan and et.al., 2016). Unique collection and capabilities makes
Zara more popular in the leading market. Skills and capabilities makes the company more
stronger and stable in the competitive market.
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Style : Style define the term company culture which define the at what extend company lead
and interact with staff and with their other stakeholders such as customers, investors, government
etc. For example : it has been analysed from the research that Zara used the solar panel in their
headquarter office to promote the eco friendly environment. It helps to maintained the leading
and most effective. Style can be beneficial for Zara to make different from its competitors such
as new bathroom sleepers can make the brand differ from other brands. Style is the unique
symbol of brand which is very essential.
Shared Values : Summarized in a vision and or mission can help to motivate the business
environment that also define the business ethics towards the business environment. Values
promote brand ethics and reputation in the market. Zara should always be a customer oriented as
they will help them to maintained the good image in the market.
PESTLE ANALYSIS
Political : Political factor of the business environment impact the business in terms of
purchasing fabrics locally, especially if the taxation on imports fro other countries increases.
Political factors influenced by the changes in policies of government or by the fashion trends
(Sørensen and et.al., 2015). On the other side, political stability can affect the business in
positive manner by smooth trading business process.
Economical : Economy is influenced from the market stability that variant from
recession or crises. Positive economy has always encourage business to earn profit. On the same
side, low economy growth affect the business into different form that less effective interns of
earning profit maximization.
Social : Social factor is one of the most significant factor of the business environment
that get affected from the society influences. Social factor can affect the business due to
changing the needs and wants of the customers, changing trends, dynamic business environment
and ineffective learning opportunity to get the things perfect and challenging.
Technological : Technological factor is the another significant factor of the business
environment. Technology is the beneficial factor through company get benefited to attract the
customer faith and attention towards the business profit (Zheng, Hu and Gao, 2018). For
example : The biggest role of technology in online shopping which is highly demanding all the
time.
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Legal : Legal influences of the business environment is legal implications and
unnecessary law that has to be followed by the organisation. In order to maintained the legal
rules and regulations like any other business. Along with that, it is necessary for the ZARA to
acquire the all business regulations.
Environmental : Business environment is highly dynamic and challenging (Zheng, Hu
and Gao, 2018). For that it is necessary for the ZARA to conduct the market survey to determine
the actual need of the organisation. Environment influenced by the different activities such as
new trends, customer preferences etc.
SWOT
Strength: The biggest strength of the Zara is the goodwill which has been build by the company
in the market as the company was one of the early starter in the market company has a good
name in the local market. Highly skilled workforce and the strong distribution channel are the
other strength of the Zara.
Weaknesses: The biggest weakness of the Zara is the gap in between the range of the product
sold into the market (Ahi and et.al., 2017). The other big problem is that the organization is not
able to read the market successfully which result in opportunity loss for the business. By
launching the new bathroom sleepers can help Zara to eliminate their weaknesses and gain more
opportunities of growth.
Opportunity: Their is a good demand for the e-commerce business in the market, so
there is a good opportunity for the Zara to build more customer with the help of online portal.
Zara also has a good opportunity of expansion as the inflation rate is in the company favour. Zara
can offer online delivery of bathroom sleepers in order to attract the Malaysia customers.
Threat: The biggest threat is the competitor as there are good amount of the competitor
in the market and the another big threat is the increasing minimum wage rate in the society. In
order to reduce the threat of competitors Zara can apply new offers, discounts to compete the
range of competitors.
Porter's Five forces
Threat of the Competitor: This is the factor which generally affects the business very
proficiently as there are many big organization working in the industry the organization includes
the big global brand also which force the Zara to cut the profit margin to be competitive in the
market which eventually affects the revenue of the business (Andreu and et.al., 2019. The
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company used to regularly evaluate the competitor in the market and take the decision according
to the same.
Threat of new Entrant: This is the factor which also affects the Zara as this is one of the
industry which sees the good amount of the new entrant and they always comes with the new and
innovative idea in the market which force the company in changing the function or the operation
of the business according to them so that they can be competitive in the market (Asef and et.al.,
2017).
Bargaining power of the Supplier: This is the force which affects the industry specially small
business but due to the huge requirement of the raw material for maintaining the operation of the
business, Zara used to get the benefits as the company used to get a good amount of the discount
on the bulk purchase of the raw material which eventually helps the Zara in getting the
competitive advantage as it eventually reduce the cost of the product and helps in increasing the
profit margin of the company.
Bargaining power of the Customer: As the fashion industry is having the good amount of the
organization which provides the good amount of the option for the customer to choose from but
due to the good goodwill of the Zara company in the market there are many customer who are
loyal to the brand of the Zara and they used to trust the product of the company blindly because
of the quality and the price at which company offer product to the customer.
Threat of the Substitute: As Zara deals in the highly competitive market the competitor in the
market always get ready to prevail the next big trend available in the market (Bjerke and Renger,
2017). Though Zara still distinct from others by the constant innovative and creative designs of
most up-to-date fashion which helps the organization in defending this factor very comfortably.
ANSOFF MATRIX MODEL
Ansoff matrix model is one of the most known and effective marketing model for the
strategic management plan. This model is developed by the Harry Ignor Ansoff, he is an Russian
mathematician that business manager and the father of strategic management has been making
ineffective and challenging (Dawes, 2018). However, it has provides 4 effective business
strategies that are market penetration, market development, product development and
diversification.
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Market Penetration : Strategy is the least risky since it leverages many of the firms
existing resources and capabilities. This is the most easiest and simplest strategy to adopt into the
business functions (De Villa, Rajwani and Lawton, 2015). The main purpose of this strategy is
to promote the existing product within the existing market. It requires less efforts of the company
and use of limited resources. This marketing strategy is useful if the market itself is growing. By
aggressive marketing tactics engaging in price wars businesses can acquire a bigger market share
over their competitors. In order to adopt this strategy Zara can use the existing product in the
existing market in order to enhance the sales and customer attention.
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Illustration 3: Ansoff Matrix Model
(Source : Gurcaylilar-Yenidogan and Aksoy., 2018)

Market Development : Market development is the another new business strategy for
creating the business brand and following development charges (Gurcaylilar-Yenidogan and
Aksoy, 2018). However, this strategy of the business growth can be helpful for the company in
case if the company launch the existing product with new market. It helps businesses to find the
new market or new customers for their product or services. Before entering a new market Zara
should analyse the business environment by identifying the Political, Economical, Social,
Technological, Legal, Environmental. Market development is the risky stage as compare to
market penetration. It involves risk of not acceptance. To develop the market it does not mean
that it accepted by the customers. For example : Zara can expand its own product or services
into the Malaysia market that better makes the company image in the competitive market.
Product Development : Product development strategy is the strategy in which company
organisation launch the new concept or product or services into the new market (Hassan and
et.al., 2016). As according to other two strategies this strategy is more risk and competitive in
business environment. Product development is to maximise profits by tapping into the current
market only. In order to implement this form of strategy company requires to analyse the needs
and wants of the study better affect the long term challenges and makes the systematic form of
developing results and goals. Product development by the company should need to fulfill the
company aims and objectives. That sustainable and leading the business opportunity. Better you
can solutions to unique problems of the customers. In order to adopt this strategy company
should need to conduct the deep research in order to better understand the market situational
growth (Mbow Neely and Dobie, 2015). This requires a lot of customer research and the
capability to innovate fast and leading. Such as Zara will soon launching the new product in the
market that are “Bathroom Sleepers”. This is not sure that this product is accepted by the
customers as like accepted the clothes. However, the business also explaining the new thoughts
and criteria of making the business more productive and influencing. Zara launch the new
product development which is bathroom sleepers in Malaysia market. This strategy of the
business is beneficial to enhance the revenue and business sustainability growth in the
competitive market.
Diversifications : Diversification is the business strategy in which company launch the new
product in new markets. Unlike other strategies this better developed the new way to launch the
business into systematic manner and following the business new market opportunity.
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Diversification is the strategy that be more influencing and leading with high potential manner.
Diversification is the following different results in order to better understand the market and
customer needs (Naidoo and et.al., 2016). Diversification strategy pushes businesses to not only
makes the different goals they also launched the new business strategy and outcomes.
Diversification is the following different objectives and better develop the leading business
change and outcomes with high productive outcomes. This obviously carries product portfolio by
introducing new product in the market with high potential growth. As compare to other strategies
it is quite complex and risky one. In this Zara needs to select the new market with new product.
But on the same side, it is beneficial for the company and accepted by the customers.
On the basis of above scenario, it has been recommended to the company that which
strategy is useful for the organisation (Neykov, Antov and Brezin, 2017). Zara should need to
focus on the customer satisfaction in order to better grow the marketing activities of the business.
SMART Objectives
S- Specific
Set objectives should always be very clear and specific which can achievable by the
company. Also, employees teammates should know what exactly the aim is to achieve.
Unspecific aim or objectives might create confusion among members which can be harmful for
the objectives. Such as Zara Bathroom Sleepers product must be as per the wants or needs of
customer and should maintained the Zara Quality.
M- Measurable
Objective or outcomes must be exactly like what company before decides. Like
Bathroom Sleepers should be exactly like it was designed by the project manager (Ogbeiwi
2017).
A- Attainable
Attainable defines is objective is possible to accomplish or not. For which company
invest their finds, resources, cost. Also it certainly makes the business more clearly different
leading that business should need to make understand the aims and objectives.
R- Relevant
Reaching the business goal and relevant to the business performance and also attained the
business objectives (Pelton and Singh, 2019). While business sometimes can retained the
business objectives that certainly offers the new business performance.
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T- Timely
Time is the most important concern for the project that define what exactly they wants to
achieve and with what specific time. In order to make the things normal this required the deals
with long term manner.
Style of Entry into the international market
Direct Exports : Direct export entry strategy is the most common for all other brands. In which
holding company sends their products to the other market. This approach is suitable when
company sends the limited product items. It involves zero involvement of intermediates (Stoian,
Rialp and Dimitratos, 2017). Besides, there are some sales representatives are involved in
throughout the process such as Importing distributors, Sales Distributors etc. In the process of
direct exporting Zara can directly sell Bathroom Sleepers to either customers or retailer.
Indirect Exports : Indirect exports is the process of exporting the business case and making the
system more energetic and influencing the different objectives. Indirect exports is the process of
exporting through domestically based export intermediaries. Indirect types of business is of
different types like export trading companies, Export managerial companies, confirming
houses , non conforming purchasing agents. In this process of indirect exports the way to
delivery of Bathroom Sleepers are Manufacturer- Distributor- Retailer to end consumers.
Licensing : Licensing can be the other option for Zara in which company need to develop a
licensing agreements that allows firm either exclusively or exclusively (Vandermeulen and et.al.,
2017). This strategy can better help of business to make the system more energetic and its also
beneficial for the company to easily get into the market and get the profit outcomes. Licensor in
the home country makes limited rights or resources available to the licensee in the host country.
The licensor earnings usually take the form of one time payments, technical feed and royalty
payments. In Licensing Zara can specifically give Bathroom sleeper to their customers through
own stores and outlets.
The advantage that Zara company can gain like entry into the new market, get attention
of the customers, pave the way for future investments in the market., retain established markets
closed by trade restrictions (Wan and et.al., 2019).
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Analysing the way Zara addresses the key as well as current issues in international operating
environment
Zara is fashion brand which have various foreign segments in different locations at
marketplace. For the company is important to analysis the key and current issues which are face
by Zara in international operating environment. Expanding business oversees which mean to
reach out the new clients or customers and also boost profits of company. That is helpful and
effective for business and its objectives. By using techniques management of Zara is able to find
out key and current issues. In this company will face problem by international company structure
because each country have their own policies, rules and regulations. In order to address key and
current issues of company, management will use and study about the international company
structure. The international structure is shows the all information and policies to management
which is help to understand various policies of international market company and issues
(Morschett, Schramm-Klein and Zentes, 2015). By the international structure company
management is effectively able to manage all policies and follows those in order to reduce
structure problems of company.
Other hand, company will face technological issues at Malaysian market. Each and every
country have their own technologies to produce product and services at market place and Zara
will face problem because they use their technique to produce bathroom slippers. The company
Zara has special product which is footwear for man, woman and kids like bathroom slippers. For
With the help of analysis technology, management of Zara is able to find key and current issues
which are happens at international marketplace. With the help of technological study operation
and production manager is able to address technological issues which will face at the time of
manufacturing footwear. Technology is day by day increase and developed which can affect to
company. In this company will take permission by Malaysian government to use their
technology or will use Malaysian technologies.
In addition legal factors will affect to company because Zara is Spanish company.
Spanish government is formulate such rules which are assists to promote industrial development
in the country. In safe ways business transactions in the logistics, rules are provide support and
benefits to company (Tofail and et.al., 2018). Other hand, Malaysian government has own
government rules and regulations which will affect to Zara management expanding their business
in Malaysian market. For that management of Zara will create localized commercial agreements
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and also review industry specific regulations for ensuring compliance and various certification
which are help to obtain as per needs of company. Also, can maintain their corporate records and
governance functions in working.
Zara is most popular company operating business ta global level. An organization has
number of stores located at different location. Business entity sell wide range as well as varieties
of products such as shoes, perfumes, clothes, beauty products etc. Zara is again planning to
expand its business operations in more countries by launching new products. An enterprise is
planning to launch bathroom sleepers for both men's and Women in Malaysia. Before expanding
the business operation in Malaysia, it is very much essential for Zara to develop the
understanding about the market, as this strategy will assist them in formulation of an effective
plan as well as strategies for launch of the new product in new market
(Kopnina and Blewitt, 2018). Due to the lack of the knowledge about the market an organization
is facing issue in identifying the exact time to launch the footwear in market of Malaysia. In
addition to this, both management and marketing team in an enterprise is facing difficulty in
making sure that whether there decision related to launch of product in the market is right or not.
In relation to Zara an enterprise can conduct the market research, as it will provide the
firm an ease in gathering all the relevant information which are required for making the decisions
related to the expansion of business in particular market. In addition to this, market research
tactics will assist an enterprise in developing the understanding about the customer behaviour
which is very much essential for successful launching of product in the market (Hamilton and
Webster, 2018). Market research technique will also help an organization in analysing the level
of competition in the market which can create hindrance in launch of the footwear in the
Malaysian market.
In context of Zara, due to continuous changes in the market structure an organization is
facing the difficulty in launching the bathroom slippers in Malaysian market. Environmental
analysis can be conducted by marketing team in Zara, as this tactic will help them in addressing
those factors which can influence the launch of the footwear by Zara in Malaysian market.
In addition to this, due top lack of knowledge about the market as well as continuous
changes in the trends, an enterprise is facing issues in determining the demand for the bathroom
wear in Malaysian market. Because of difference in culture and lack of knowledge about
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customer, firm is also facing the issue in determining whether the product offered by them will
be preferred by people in the market or not.
Zara can also perform marketing segmentation analysis, as it is the tactics which will help an
organization in determining if they will be able to sell particular product that is footwear in
Malaysian market or not. Implementation of market segmentation analysis will also help an
organisation in identifying the best strategy or way which can be applied for fulfilling the needs
as well as demand of target customer groups.
Due to continuous changes in the economic factor an enterprise In determining the prices
for their products. The other techniques which can be utilized by Zara for addressing the key as
well as present issues in launching specific product is Product gap analysis. It is the technique
which will assist an enterprise in determining whether demand for the footwear in Malaysian
market is satisfied by the other companies in the market (Teagarden, Von Glinow and Mellahi,
2018.). Product gap analysis technique will assist management in determining the prices of the
products.
In addition to the above strategies, marketing team in Zara can perform Swot analysis. It
is the technique which will assist an organization in determining the strengths, weakness,
opportunities and threats. Developing the understanding about the threats and strength is very
much crucial as these variables can have significant influence on the product launch and also
effect on the performance of company in international market.
In context of operations of Zara at international level, an organization is facing the ethical
as well as suitable issues which has significant effect on the business performance of the firm in
global market. As the issue of the low per capita has greatly effected the purchasing capability of
the customers which further has influenced the business sustainability of organization in
international market (Perri and Quadrini, 2018). The decrease in the per capital income of the
customer in Malaysian market has led to the decline in sales as well as profitability of the Zara
company. An organisation in order to deal with the issue of decline in sales as well as
profitability due to lower per capita incomer of consumer is required to promote the quality. As it
is considered to be as one of the best tactics which will aid business entity in positively
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influencing people to buy specific product. In addition to this, Zara can offers discounts,
incentives on purchase of specific products for attracting customers.
In addition to this, changes in the laws and regulations in the Malaysia is effecting the
business operations of the Zara. Business entity is suffering from the issue that they can not sell
their full stroke as well as because of change in season stock of footwear that is bathroom wear
become outdated and firm has to discard their stock. It is the changes in the environmental
variables which causes threat to firm as an organisation might have to face loss. Zara can
schedule it procedures in such a manner so that wastage of resources can be prevented and the
positive effect of business operation on environment, culture and society can be increased. It is
the tactics which will help an organization in increasing the business sustainability in
international market. In addition to this, due to implementation of trade barriers Zara is facing
the difficulty in expanding its business in Malaysian market (Tuomala, 2018). An organisation in
order to deal with the issue of trade barrier can form joint venture with global firm, as this tactic
will provide firm an ease in entering into international market.
CONCLUSION
From the above study it had been concluded that the international business plan has very
important and effective for company in order to lunch new product and expending their business
in other market. It had been concluded that merger and acquisition has help to consolidate the
company or assets by various types of the financial transactions. It had been also concluded that
the McKinsey framework helped to develop business at international market by making strategy,
structure, system, staff, skills, shared values and styles of company. Study had been covered by
the technological issues, ethical issues, legal issues which has faced by company at the time of
expanding their business in other market.
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REFERENCES
Books and Journals
Ahi, A. and et.al., 2017. International market entry: How do small and medium-sized enterprises
make decisions?. Journal of International Marketing, 25(1), pp.1-21.
Alon, I. and et.al., 2016. Global marketing: contemporary theory, practice, and cases.
Routledge.
Andreu, R. and et.al., 2019. Family involvement and Spanish hotel chains’ entry modes
abroad. Current Issues in Tourism, pp.1-19.
Asef, P. and et.al., 2017. An alternative organic growth through acquisitions investigation on
wind energy. Energy Procedia, 115, pp.298-307.
Bjerke, M. B. and Renger, R., 2017. Being smart about writing SMART objectives. Evaluation
and program planning, 61, pp.125-127.
Dawes, J., 2018. The Ansoff Matrix: A Legendary Tool, But with Two Logical Problems. But
with Two Logical Problems (February 27, 2018).
De Villa, M. A., Rajwani, T. and Lawton, T., 2015. Market entry modes in a multipolar world:
Untangling the moderating effect of the political environment. International Business
Review, 24(3), pp.419-429.
Durdyev, S., Omarov, M. and Ismail, S., 2016, November. SWOT Analysis of the Cambodian
construction industry within the ASEAN economic community. In Proceedings of the 28th
IBIMA conference on Vision (Vol. 2020).
Guedes, M., 2016. International market selection of Parfois(Doctoral dissertation).
Gurcaylilar-Yenidogan, T. and Aksoy, S., 2018. Applying Ansoff’S Growth Strategy Matrix To
Innovation Classification. International Journal of Innovation Management, 22(04),
p.1850039.
Hassan, N. U. and et.al., 2016. Framework for minimum user participation rate determination to
achieve specific demand response management objectives in residential smart
grids. International Journal of Electrical Power & Energy Systems, 74, pp.91-103.
Mbow, C., Neely, C. and Dobie, P., 2015. How can an integrated landscape approach contribute
to the implementation of the Sustainable Development Goals (SDGs) and advance climate-
smart objectives. Climate-Smart Landscapes: Multifunctionality in Practice; Minang, PA,
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van Noordwijk, M., Freeman, OE, Mbow, C., de Leeuw, J., Catacutan, D., Eds, pp.103-
117.
McCloud, D. G., 2018. Southeast Asia: Tradition and modernity in the contemporary world.
Routledge.
Naidoo, V. and et.al., 2016. Entry modes as a component of international marketing strategy: a
mixed-method analysis of higher education services. In International Marketing of Higher
Education (pp. 47-82). Palgrave Macmillan, New York.
Neykov, N., Antov, P. and Brezin, V., 2017. STRATEGIC PERSPECTIVES OF BULGARIAN
PLYWOOD PRODUCTION AND TRADE. Innovation in Woodworking Industry and
Engineering Design. (2). pp.62-67.
Ogbeiwi, O., 2017. Why written objectives need to be really SMART. British Journal of
Healthcare Management, 23(7), pp.324-336.
Pelton, J. N. and Singh, I. B., 2019. The Smart City: Build It and They Will Come. In Smart
Cities of Today and Tomorrow (pp. 225-237). Copernicus, Cham.
Perveen, S. and Habib, S. S., 2017. IDENTIFYING CONSTRAINTS FOR HOSPITAL
INFECTION CONTROL MANAGEMENT VIA MCKINSEY 7S FRAMEWORK IN
PAKISTAN. Pakistan Journal of Public Health, 7(4), pp.213-222.
Pourhoseingholi, M. A., Vahedi, M. and Baghestani, A. R., 2015. Burden of gastrointestinal
cancer in Asia; an overview. Gastroenterology and hepatology from bed to bench, 8(1),
p.19.
Rasnan, M. I. and et.al., 2016. Sustainable e-waste management in Asia: Analysis of practices in
Japan, Taiwan and Malaysia. Journal of Environmental Assessment Policy and
Management, 18(04), p.1650023.
Sørensen, J. I. and et.al., 2015. A Framework for Managing Corporate Social Media Crisis.
Stoian, M. C., Rialp, J. and Dimitratos, P., 2017. SME networks and international performance:
Unveiling the significance of foreign market entry mode. Journal of Small Business
Management, 55(1), pp.128-148.
Vandermeulen, A. and et.al., 2017. Flexibility offered by residential floor heating in a smart grid
context: The role of heat pumps and renewable energy sources in optimization towards
different objectives. In IEA Heat Pump Conference, Date: 2017/05/15-2017/05/18,
Location: Rotterdam, The Netherlands.
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Wan, L. and et.al., 2019. Entry modes in reshoring strategies: An empirical analysis. Journal of
Purchasing and Supply Management, 25(3), p.100522.
Wiwanitkit, V., 2016. The current status of Zika virus in Southeast Asia. Epidemiology and
health, 38.
Zheng, C., Hu, M. and Gao, F., 2017. Diabetes and pulmonary tuberculosis: a global overview
with special focus on the situation in Asian countries with high TB-DM burden. Global
health action, 10(1), p.1264702.
Kopnina, H. and Blewitt, J., 2018. Sustainable business: Key issues. Routledge.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Teagarden, M.B., Von Glinow, M.A. and Mellahi, K., 2018. Contextualizing international
business research: Enhancing rigor and relevance. Journal of World Business, 53(3),
pp.303-306.
Perri, F. and Quadrini, V., 2018. International recessions. American Economic Review, 108(4-5),
pp.935-84.
Tuomala, M., 2018. Review of The International Business Archives Handbook: Understanding
and Managing the Historical Records of Business. Journal of Western Archives, 9(1), p.5.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Tofail, S. A. and et.al., 2018. Additive manufacturing: scientific and technological challenges,
market uptake and opportunities. Materials today. 21(1). pp.22-37.
Online
Financial Express. 2018. [Online]. Available
through :<https://www.financialexpress.com/industry/zara-india-reports-72-rise-in-fy18-
profit/1234579/>.
Overview of Business In Malaysia. 2019. [Online]. Available
through :<https://aseanup.com/business-malaysia/>.
The difference between the two successful brands. 2019. [Online]. Available
through :<https://edited.com/blog/2014/04/zara-vs-hm-whos-in-the-global-lead/>.
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Annual Report. 2018. [Online]. Available
through :<https://static.inditex.com/annual_report_2018/pdfs/en/Inditex%20Annual
%20Report%202018.pdf>.
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