Challenges Faced by Zara for Continued International Growth
Added on -2019-09-22
Zara faces challenges for continued international growth due to political, social, economic, and technical factors. The competition in the fashion sector and the business model of Zara are also challenges.
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3.Challenges faced by Zara for continued international growthThe difficulties to proceed with continued international growth that will be confronted by Zaracan be assessed utilizing PEST examination apparatus. This instrument is useful inunderstanding the outside market variables influencing Zara. Political: As an organization headquartered in Spain, Zara is influenced by the Catalan freedomdevelopment (Catalan News Agency, 2011). On the off chance that the Catalan locale picks upfreedom from Spain this will imply that a few operations of Zara would be in te recently shapednation. So this would affect Zara. Social: There has been huge increment in online retail deals in the UK (Moth, 2015. In any case,the online operations of Zara are less developed when contrasted with that of their principlerivals in UK, for example, ASOS, Marks and Spencer, H&M and so on. Economical: Eurozone obligation emergency has not yet settled. As an organization that hassignificant operations in Spain and Portugal Zara is impacted by this emergency (Fashion Vore,2013). Technical: Zara uses technology in a few regions of their store network. So the newimprovement in computerization innovation impacts Zara (Fashion Vore, 2013). From the Pest examination it can be derived that political and financial strength in Spain andEurope is a principle test to universal development of Zara. Market entry method adopted by Zara is similar to the stage model of internationalization. Underthis strategy, Zara enters new markets that are geographically closer to Spain through a singlestore and uses this store to test the new market. Based on the viability of the market further
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