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Introoduce to Global Banding

   

Added on  2020-03-23

6 Pages1499 Words62 Views
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IntroductionGlobal banding is an important aspect to multinational companies in international marketing. An effective global branding gives global businesses competitive edge to compete in the global market (Armstrong, et al., 2015). Global branding refers to a slogan, name, sign, design, or symbols that identify a company or its products in the markets (De Mooij, 2013). Companies brand their products to differentiate their products in the market. A successful global brand requires adaptation, aggregation, and strategies. Global branding requires positioning strategies to create a perception on how customers and potential customers perceive the brand relative to other brand in the market. The following write up is an analysis of global banding and position a case study of Zara FashionRetailer. Company informationZara fashion Retail is a multinational clothing and accessories company based in Arteixo Galicia in Spain. The company was started in 1974 in Spain by Amancio Ortega. The Company has 2169stored in different countries and cities around the globe. The Company earned US$ 15.9 billion of revenue in 2016 financial year. Zara is led by Pablo Tejera as the CEO. Zara main product is clothing for men, women, and children. The company products are supplied as per the consumers’ trends. The company has a very responsive supply chain that enables shipping of a new product within a week. The company also takes two weeks to produce a new fashion after a design creation. Zara Fashion Retail produces more than 450 million items in a year. Zara also launches an average of 10000 new designs per year. Zara is known for its zero adverting strategyand instead opening new stores (Oliveira, 2014). The Company main competitors are Topshop, H&M and Uniqlo.Analyses of Zara Fashion CompanyZara competitive strategy is an implemented through a marketing strategy that focuses on the speed to market, product variety, and store location. The speed to market strategy involves shortening the time period between producing to chain store from six months to two weeks. The minimum time to market enables the company to provide trending fashion in the clothing
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industry. The company is also able to invest in fast fashion and be flexible (Medina, and Vu, 2014). Secondly, the company adopts product variety strategy to enable variety in their stores. The company produces more than 400 different garments to ensure product variety. This leads touniqueness of the products in the company stores. Customers are attracted to the stores to find a variety of clothes (Oliveira, 2014). Lastly, the Zara Fashion Retail adopts a store location strategy as a competitive strategy. The company prefers to invest in opening new stores instead of advertising. The company also prefers opening their stores in most luxurious locations and capital cities CBDs. The company has stores in all top biggest capitals around the globe. This strategy enables to communicate about their products through display. These strategies have enabled the company to be a market leader in fashion (Halkias, Davvetas, and Diamantopoulos, 2016). Analysis of Zara application of Theories and PrinciplesZara Fashion Retail has been successful in global branding and global positions. This has enabled the company to expand rapidly over the years and be a market leader in clothing industryaround the globe. Zara has adopted the theories and principles of aggression and adaptation in formulating global strategies for global branding. The company specializes in value preposition and market participation. The company applied value proposition and market participation in the following ways;Value propositionZara Fashion Retail strategies for global branding are operational excellence and product leadership. The company operations are effective and efficient though close management. The company has employed a management system that monitors clothes in the store ensuring that there are minimal losses. On the other side, the company specializes on being the product leader. Product leadership is enhanced by extensive market research that provides constant product development. This company is also focused on quality, creative designs that are trending in the industry (Xie, Batra, and Peng, 2015). This product leadership has enabled the company to establish a global brand in fast fashion.Market Participation
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