HI5013 Assignment: Zara's Internationalization Across Borders

This presentation examines Zara's internationalization strategy, focusing on its expansion into the Asian market. It begins by defining internationalization and its relevance in the business environment, using Zara as a case study. The presentation details Zara's approach to the Asian market, includi...Read More

Managing
across
Border

Introduction
 The purpose of this presentation is to
highlight the details about the concept
of internationalization in the business
environment. This concept has been
explained using Zara as example that
has expanded its scope of business in
Asian market.

Internationalization
 Internationalization refers to the process
of increasing the involvement of
company in the international market.
This process helps the organization to
enter in differential market apart from
their home nation and initiate business
activity in that market as well.
Internationalization is a task of
globalization as globalization is a wider
concept (Batsakis, and Mohr 2017).

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 The process of internationalization is a
task that is performed to meet the
needs of customers present in different
parts of the world. The social media
platform adequately helps the
organizations to internationalize their
business and attain international
customers and sales as well.

Zara in Asia
 The company Zara is a Spanish apparel
retailer present in international
environment. The company is specialized in
serving fast fashion clothing products and
accessories in the market. The organization
is an economic brand that targets middle
income level people present in the market.
The organization is owns around 10,000
stores in the world (Childs, and Jin 2015).

Approach to
Internationalization
 Internationalization process helps the
organizations in growing and attaining
better sales in the business environment.
The company makes use of vertical
integration strategy to attain rapid
expansion in the global market. The
organization aims to make effective
promotion strategies in the target market
with less spending on the advertising
segment (Jin, and Cedrola 2016).

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 The company makes use of classic stage
model to enter in the geographic
market. This process helps them to
initially enter in cultural or geographic
market before grabbing the
opportunities of the distant market. The
company utilized market entry strategy
to enter in Asian market.

Process of Internationalization
 The company used vertical integration, franchise
and joint venture process and promotional
strategies to attain internationalization in the
external environment. The internationalization
strategy of Zara is one of the most successful
strategies used by the fashion retail. The
company majorly focused on the expectation of
the customers and their feedback and created
the product accordingly to increase their level of
satisfaction (de Jorge Moreno, and Carrasco
2016).

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 The company takes less time between
the design and delivery of goods that
increases the satisfaction level of the
customers. Vertical integration of supply
chain helps the organization in attaining
better flexibility and delivering goods to
the customers on time.

Challenges faced by Zara
 The company initially faced the problem
analyzing the interest level of the
customers in the target.
 Difference in culture made it difficult for
the organization to survive in the
international market.
 The company also faced difficulty in
finding the right entry market strategies
in the international market (Mo 2015).

Conclusion
 Thus, by analyzing the above mentioned
events, it should be noted that the
presentation guided the reader
regarding the details about the
internationalization strategies used by
the company Zara. The company has
effectively used this process to grow
and increase the scope of business.

References
 Abrahamsson, J. and Isaksson, A., 2018. The Knowledge-Based Resources of Venture Capital Firms' and Born
Global Firms' Internationalization. Abrahamsson, J. & Isaksson, A.(2018). The Knowledge-Based Resources of
Venture Capital Firms’ and Born Global Firms’ Internationalization. ASEAN Journal of Management &
Innovation, 5(1), pp.30-46.
 Amarkhil, H., 2018. Brand management that creates value to customer: the case of Zara brand.
 Anwar, S.T., 2017. Zara vs. Uniqlo: Leadership strategies in the competitive textile and apparel industry. Global
Business and Organizational Excellence, 36(5), pp.26-35.
 Batsakis, G. and Mohr, A.T., 2017. Revisiting the relationship between product diversification and
internationalization process in the context of emerging market MNEs. Journal of World Business, 52(4), pp.564-
577.
 Batsakis, G. and Mohr, A.T., 2017. Revisiting the relationship between product diversification and
internationalization process in the context of emerging market MNEs. Journal of World Business, 52(4), pp.564-
577.
 Carro-Rodríguez, J., Lorenzo-Romero, C. and Gómez-Borja, M.Á., 2018, September. Historical query data as
business intelligence tool on an internationalization contex. In 2nd International Conference on Advanced
Reserach Methods and Analytics (CARMA 2018) (pp. 221-228). Editorial Universitat Politècnica de València.
 Chan, H.L., Choi, T.M. and Man, K.Y., 2016. The Internationalization Trajectory of Bossini: A Fashion Retailing
Enterprise from Hong Kong. In Fashion Brand Internationalization (pp. 89-114). Palgrave Pivot, New York.
 Childs, M.L. and Jin, B., 2015. Internationalization Of Fast Fashion Retailers: Does It Follow The Uppsala Model?.
In Marketing Dynamism & Sustainability: Things Change, Things Stay the Same… (pp. 693-696). Springer, Cham.
 Czinkota, M.R., Marinova, S., Samli, A.C. and Jiang, Z., 2015. Key Determinants of Retail Internationalization: Do
Institutions Matter?. In Institutional Impacts on Firm Internationalization (pp. 264-285). Palgrave Macmillan,
London.

Cont.
 de Almeida Bastos Gomes, R.M., Teixeira Carneiro, J.M. and Secches Kogut, C., 2017. Case studies in the retailer
internationalization: a literature review. Internext: Revista Electrônica de Negócios Internacionais da ESPM, 12(1).
 de Jorge Moreno, J. and Carrasco, O.R., 2016. Efficiency, internationalization and market positioning in textiles
fast fashion: The Inditex case. International Journal of Retail & Distribution Management, 44(4), pp.397-425.
 Dimitrova, B.V., Rosenbloom, B., Larsen Andras, T. and Kim, S., 2019. Retail internationalization: A review and
directions for future research. Journal of Marketing Channels, pp.1-21.
 Jin, B. and Cedrola, E., 2016. Overview of fashion brand internationalization: theories and trends. In Fashion
Brand Internationalization (pp. 1-30). Palgrave Pivot, New York.
 Leidiger, N., 2018. Internationalization Strategy of Fashion Retailer ZARA. GRIN Verlag.
 Lin, S., Mercier-Suissa, C. and Salloum, C., 2016. The Chinese born globals of the Zhejiang Province: A study on
the key factors for their rapid internationalization. Journal of International Entrepreneurship, 14(1), pp.75-95.
 Mo, Z., 2015. Internationalization process of fast fashion retailers: evidence of H&M and Zara. International
Journal of Business and Management, 10(3), p.217.
 Mohr, A. and Batsakis, G., 2017. Internationalization speed and firm performance: A study of the market-seeking
expansion of retail MNEs. Management International Review, 57(2), pp.153-177.
 Rudienė, E., Morkūnas, M. and Skvarciany, V., 2018. ASSESSMENT OF IMPACT OF FORMAT OF RETAIL
INTERNATIONALIZATION ON CONSUMER ATTITUDE.
 Sabel, J. and Johansson, U., 2016. Being Green and Global-: A qualitative study of sustainable Swedish fashion
companies and their environmental work connected to internationalization.
 Saraswat, S., 2018. Strategies v/s Consumer Perception of Brand Zara-India. IITM Journal of Management and
IT, 9(2), pp.68-80.
 SENNAJI, G., 2016. The Internationalisation of fashion retailers: Zara vs. H&M Case of India.