Strategies for ZARA's Entry into Emerging Markets

This research focuses on the strategies that ZARA can implement while entering into emerging markets. It explores the advantages and disadvantages of expanding business practices in these markets and identifies new trends in globalisation. The research methodology includes both qualitative and quantitative approaches.

Research
Project

Theme: Globalisation
INTRODUCTION
Overview of research
Globalisation is considered as integration of different markets at the global economy
which leads to maximising interconnectedness of national economies. It is also consider as
procedure of interaction and integration among companies, people or society as well as
governments at international level. Globalisation helps in enhancing free trade as well as
communication among the nations and it also help in increasing media, healthcare facilities,
technology, education, customers goods and many more (Beck, 2018). Organisation selected for
this research is ZARA which is a Spanish clothing or apparel retail company introduced in 1975
by Amancio Ortega as well as Rosalia Mera. Its head office is located at Arteixo, Spain and they
are operating their business operations and functions at worldwide level. The aim of conducting
this research is to ascertain different plan of action which can be enforced by a international
organisation while entering at emerging market. For this researcher is conducting research
through numbers of methods such qualitative, quantitative, primary and secondary. Along with
this, they also gather informations through questionnaire as well as literature review in which
informations are gather from existing documents.
Background of organization
ZARA is Sociedad Anónima type firm which is operating its business operations and
functions in apparel retail organization. It is introduced by Amancio Ortega as well as Rosalia
Mera at year 1975. Head office of respective company is located at Arteixo, Spain as well as
they are offering wide range of products at worldwide level (Cetorelli and Goldberg, 2012).
Respective company offer wide variety of clothings for women's, men's as well as kid's which
have different section i.e. Zara Kids. Products offer by ZARA are fashionable clothing, shoes,
beauty products, accessories, swimwear and perfumes. Researcher of respective project is gather
informations related to different strategies which ZARA may implement while entering into new
growing marketplace.

Rationale of research
Rationale of conducting this research is develop understanding and knowledge about
globalisation in effective manner. Moreover, through this researcher also want to determine
different methods which can be adopt by multinational companies while expanding or entering
into new marketplace (Crane and et. al., 2019). By this project manager able to develop proper
planning by which they can expand multinational organisations can expand their business
operations as well as functions in effective as well as successful manner. In addition to this,
through this research, project manager able to plan proper strategies for ZARA who is
conducting their business at multinational level so that they can enter into growing market in
successful way.
Research Aim
“To determine diverse types of strategies implemented by a multinational company
during entering into growing marketplace. A study on ZARA, Soho, London, Branch.”
Research Objective
 To identify the new trends that can be implemented by an organisation at the time of
globalise its business in emerging market.
 To identify the advantages and disadvantages for an organization while expanding its
business practices in emerging market.
 To identify the diverse strategies implemented by an organization while moving into
growing marketplace.
Research Questions
 What are the new trends that can be implemented by an organisation at the time of
globalise its business in emerging market?
 What can be the advantages and disadvantages for an organization while expanding its
business practices in emerging market?
 What are the diverse strategies implemented by an organization while moving into
growing marketplace?
Significance of research
Scope of conducting this research is to develop proper understanding of globalisation as
well as different strategies through which multinational company like ZARA can enter into new

growing marketplace easily and successfully operate their business activities (Crothers, 2017).
Along with this, through this research project manager also able to understand about new trends
related to globalisation, advantages and disadvantages of respective concept. In addition to this,
it will also help in developing understanding about the different strategies which can be
implement by company while adopting globalisation.
Literature review
Literature review is also known as narrative review in which project manager or
researcher will review different articles. It is also considered as a scholarly paper that will
include current knowledge which also include substantive findings and contribution of theories
as well as methodologies on a specific research topic (Croucher, 2018). There are several
benefits gain by research when they adopt literature review method for gathering data or
information such as they get reveal source of information, able to evaluate informations from
perspective of different authors and so on.
 What are the new trends that can be implemented by an organisation at the time of
globalise its business in emerging market?
According to the view point of Shubham Jain, 2017, AT Kearney's Global Business
Policy Council had determined that there are several macro trends which plays an essential role
in developing as well as improving future of operating environment for society, governments and
companies. First trend is geopolitical realignment which is increasing day by day. In respect of
this in 2016, Europe continued to turn inward in order to grapple along with internal political
issues, migrant crisis and violent extremism (trends in globalisation, 2020). Second macro trend
is economic resurgence according to which by implementing globalisation companies as well as
countries able to increased their economy which help them in contributing to booming
marketplace with high profitability.
Next macro trend is accelerating global climate change according to which extremely
change in climate or weather leads to several opportunities such as melting ice at Arctic help in
opening up of new shipping lanes as well as it also unlock access of natural resources. Forth
macro trend is IT (Information Technology) revolution according to which it will blur the line
among the real as well as virtual life and this will also help in growing personalization of goods
and services according to customers requirement and experiences (Czaika and De Haas, 2014).
Another trends of globalisation is rise of machines that will lead to unlocking of new as well as

advance technology such as robotics, communication medium, smart device and many other
systems which help in attracting customers and increasing business at international level. There
are some other numbers of trends related to globalisation.
 What can be the advantages and disadvantages for an organization while expanding its
business practices in emerging market?
As per the article posted at OAEC (OpenAeurpoeancompany.com), 2018, there are
several advantages and disadvantages through which an organisation go while expanding its
business at emerging marketplace for increasing their business. Advantages of expanding
business operations and functions are it help in reaching new customers which will help them in
enhancing their sales, market value and profitability. This will also aid in accessing new talent
which help firm in growing business effectively as well as it lead to amplifying brand name and
image through which market shares get increased (Docquier and Rapoport, 2012). Moreover it
will also help in securing foreign investment that help business expansion as well as booming
profitability and market shares.
On the other hand there are numbers of disadvantages which are faced by a company
when they adopt expansion of business at emerging marketplace. Such as company management
need to develop new foreign rules and regulation according to country because every country
have separate policies, rules and regulation. Along with this when a firm expand their business
they face wide issues related to logistics handling because they need to deliver products and
services in proper time according to requirement. There are approx 195 countries who didn't
speak English so when a company expand their business they faced issues related to
communication or language (The Advantages and Disadvantages of International Business
Expansion, 2020). Moreover they also go through issues related to time zone such as if American
firm expand to India they faced huge difference due to time because when there is day in
America then it will be night at India.
 What are the diverse strategies implemented by an organization while moving into
growing marketplace?
According to article given on Bubbles, 2020, there are numbers of strategies that an
organisation can implement in order to expand their business activities as well as functions at
international market for gaining high profitability. First strategy which an organisation can
implement is Franchising in which franchiser will provide franchises to franchisee so that they

conduct work accordingly (Evans, 2012). In this strategy franchisees will pay certain amount of
fee as well as sometime a specific amount of profit per year. It is consider as one of the easiest
way to expand business in new emerging marketplace. Next strategy is direct exporting
according to which company can directly export their goods and services to another country
through agents or distributors, these peoples are generally consider as branch among the
customers and company. Third strategy for expanding business is partnering up according to
which host organisation get partner at the foreign country who will help in marketing products
and services and in respect of this they will get some portion of profit (8 Strategies to Enter a
New Foreign Market, 2020). Company may also adopt licensing method in order to spread out
its operations at worldwide level according to this host firm will provide licence to other
company at domestic level which will market as well as sale products or services at particular
location. There are several other strategies which a company may implement for expanding its
business activities at the growing market where they earn high profitability.
At last from evaluating all objective through literature review project manager of this
research able to understand that in today's time it is necessary for every company to adopt
globalisation because through it they able to gain numbers of benefits. Moreover by attaining
that benefits a company may boost their business operations as well as profitability in successful
manner. While conducting research, project manager found that there are some limitation of
globalisation which may impact on the company, country as well as society so it is essential for
companies to adopt globalisation after conducting proper analysis of market as well as situation.
Research methodology
Research methodology is considered as particular process or tool that can be used to
determine, choose, process and analyse informations that are based on research topic (Hickson
and Pugh, 2014). By adopting proper research methodology project manager able to collect all
necessary as well as reliable informations that may related to the research topic.
Research approach
 Qualitative research approach
Qualitative research is defined as a scientific technique which based on observation for
gathering non numerical informations related to research topic. This type of research methods
will used to identify means, thought, characteristics, explanation, symbolization and descriptions

of different factors (Hirst, Thompson and Bromley, 2015). Respective method of data collect not
include measurement as well as counts information or related to numerical informations. There
are various method or techniques can be include in Qualitative research approach such as case
study, one to one interview, observation, record keeping and many more.
 Quantitative research approach
In quantitative research method data or informations which are gathered by project
manager are based on statistical, numerical, mathematical and many more. In respect of this
researcher can implement different techniques like questionnaire, survey, polls, manipulation of
statistical data and many others (Jaumotte, Lall and Papageorgiou, 2013). While using this
method project manager will strongly focuses on gathering numerical informations or data in
effective way. By respective research approach, project manager able to gather more statistical
based, reliable and authenticate information or data for their research.
In this research, project manager is adopt both Qualitative research approach as well as
Quantitative research approach for gathering non numerical and numerical informations or data.
Project manager of this research select both qualitative as well as quantitative research approach
because through both sources they able to gather numerical as well as non numerical data which
help in gaining appropriate outcome of research. Along with this it will also make outcome more
authenticate as well as reliable which help researcher in attaining its desire goal.
Research philosophy
Research Philosophy is considered as over arching practices which is generally used for
developing knowledge and nature of knowledgable. It is also consider as phenomenon that is
adopted by project manager for gathering, analysing and using informations for getting proper
outcome of research (Kalemli‐Ozcan, Papaioannou and Peydro, 2013). In respect of respective
research, project manager is adopting pragmatism research philosophy because they are using
mixed research approach i.e. Quantitative research approach and Qualitative research approach.
Time Horizon
 Work breakdown structure
Respective time horizon method is considered as systematic engineering techniques by
which researcher or project manager may divide whole activity into small sub activities so that
members conduct work accordingly (Kramsch, 2014). Through this they able to ensure that each
and every work is conducted in proper manner by fulfilling set standard. In addition to this

respective tool also help project manager in ensuring that activities related to research are
conducted in proper and correct manner for attaining desire goal. Work breakdown structure
developed by respective project researcher is given below:-
 Gantt Chart
Gantt chart is introduced by Henry Gantt in the form of bar chart that will describe about
project schedule of research work as well as it will also illustrates about dependency relationship
between the practices and current planed status of project (Martinez and et. al., 2012). By
adopting respective method, project manager able to attain their desire goal because it will help
researcher and team members in conducting work properly according to set time duration. Gantt
Chart developed by this research project manager is given below:-

Research strategy
Research strategy is a step by step planed procedures or action that provide proper
direction to an individual's efforts, thought or ideas. Through this researcher able to conduct their
research in scheduled as well as systematic manner for gaining research outcome properly
(Mathews, Ribeiro and Vega, 2012). There are numbers of research strategy which can be
adopted in this such as questionnaire, survey, case study, qualitative interview and action based
research. Moreover, there are few factors that may consider for developing effective research
strategy such as locate background data or informations, articulate to topic, determine scope of
research topic and so on.

Data collection
 Primary Method
Informations or data collected by respective method are considered as first hand
information which are gather by researcher by itself through various types of techniques for
example conducting interviews, questionnaire, observations, survey, experiment and many others
techniques. These data are more accurate as well as new based on research topic and
requirement.
 Secondary Method
Informations gathered through secondary method are considered as second hand data
because these data or information are gathered from already published documents or files. There
are numbers of source which are considered in respective method of data collection such as
earlier research, service record, client history, government record or publications, personal
records, online articles, online and offline books and many others sources (McMichael, 2013).
Project manager of respective research is implementing both primary and secondary
method for gathering informations or data related to topic. For primary data collection research is
developing questionnaire because through it they able to determine perspective of respondents in
effective manner as well as it also help in gathering reliable informations according to research
topic. In respect of secondary method they are evaluating old articles and books which is
consider as literature review.
Sampling
Sampling is consider as method in which researcher will identify numbers of respondents
or audiences from which they gather informations or data in effective manner (Pieterse, 2012).
Sampling techniques is divided into several types i.e. random sampling, cluster sampling,
systematic random sampling, multistage sampling and stratified sampling. In context of this
research project manager is adopting random sampling according to which they will gather
information from randomly selected audiences. It is so because through it researcher able to
provide equal opportunities to all audiences as well as number of respondents which are selected
for questionnaire is 30. Researcher of respective research will gather informations through 30
participants because it is appropriate number for gathering informations related to research topic.
It is so because if they select less number than 30 then project manager not able to get effective
outcome same if they select more then 30 then it required more calculation which is time taking

as well as it also create confusion. These audiences for outcome are the employees of respective
firm because it help in gathering more authenticate information related to company. In order to
inform about research outcome researcher will adopt online method because through it everyone
can access outcome easily according to themselves. Moreover, audiences of respective research
are employees of ZARA because they know almost all informations about the company so they
can provide all necessary informations related to questions.
Research ethics
While conducting research there are numbers of factors which are essential to be consider
because that will help in ensuring authenticity of data or informations that are gathered by
project manager (Spring, 2014). Such as during gathering informations it is essential for
researcher to keep confidentiality of personal informations that are related to research,
respondents and members as well as they also need to conduct their work according to research
policy so that no illegal practices can take place. Along with this, it will be necessary for
researcher to implement their activities in appropriate manner without harming anyone emotions
or legislations.
Questionnaire
A questionnaire is considered as research instrument which include numbers of questions
in order to gather informations from respondents on a specific research topic (Stiglitz, 2017). By
developing questionnaire researcher able to gather reliable information easily as well as
economically.
Questionnaire
Name:
Age:
Contact Number:
E-mail ID:
Q1. Do you have knowledge about globalisation?
a) Yes
b) No
Q2. What are the new trends that can be implemented by a company at the time of
adopting globalisation?

a) Geopolitical Realignment
b) Economic Resurgence
c) Global Climate Change
d) All of the above
Q3. How globalisation impact on ZARA business operations and functions at the potential
marketplace?
a) Positively
b) Negatively
c) Both
Q4. What are the advantages gain by ZARA during expanding its business practices in
emerging marketplace?
a) Increase Customer's base
b) Expand Marketplace
c) Access to new talent
d) Get pool of resources
e) All of the above
Q5. What are the disadvantages faced by ZARA while expanding its business practices in
emerging marketplace?
a) Increase competition
b) Enhance expenses
c) Minimise safety of net programs
d) Develop new policies
e) All of the above
Q6. What are the strategies ZARA can adopt for overcoming limitation related to
implementation of globalisation?
a) Conduct proper market research
b) Hire and train employees
c) Develop budget
d) All of the above
Q7. What are the diverse strategies that ZARA can implement while moving into growing
marketplace?

a) Joint Venture
b) Partnership
c) Direct Exporting
d) Licensing
Q8. Do you think ZARA management need to develop new policies, rules and regulation
while entering into emerging marketplace?
a) Yes
b) No
Q9. Do you think by adopting globalisation ZARA able to grow their business in new
emerging marketplace?
a) Yes
b) No
Q10. Any recommendation you want to give for future improvement related to
globalisation …..............................................................................................................................
….....................................................................................................................................................
…................................................................................................................................................... .
Data finding, Analysis and Discussion
Thematic analysis
Theme 1: Knowledge about globalisation
Q1. Do you have knowledge about globalisation? Frequency
a) Yes 19
b) No 11

Interpretation: According to data gathered by researcher from 30 respondents 19 are aware
about globalisation whereas 11 are not know about it. So it is essential for ZARA as well as
researcher to increase awareness about globalisation in the society by conducting several
practices such as arranging workshop, conferences and so on.
Theme 2: New trends implemented by company during globalisation
Q2. What are the new trends that can be implemented by a company
at the time of adopting globalisation?
Frequency
a) Geopolitical Realignment 9
b) Economic Resurgence 6
c) Global Climate Change 5
d) All of the above 10
Interpretation: By analysing the above data it can be determine that there are numbers of
trends that a company may adopt at the time of globalisation such as according to 9 respondents
a) Yes b) No
0
5
10
15
20
19
11
9
6 5
10
a) Geopolitical
Realignment
b) Economic Resurgence
c) Global Climate Change
d) All of the above

they can implement geopolitical realignment whereas 6 says that they can adopt economic
resurgence. On the other hand in respect of 5 respondents companies must implement global
climate change whereas 10 audiences says they need to consider all these trends while adopting
expansion.
Theme 3: Globalisation impact on ZARA business operations and functions at the potential
marketplace
Q3. How globalisation impact on ZARA business operations and
functions at the potential marketplace?
Frequency
a) Positively 7
b) Negatively 8
c) Both 15
Interpretation: Globalisation has both negative as well as positive impact on the company. In
respect of data gather by project manager in the behalf of ZARA, according to 7 respondents out
of 30 globalisation impact positively. On the other hand, in respect of 8 audiences it will affect
negatively to ZARA whereas in respect of left over 15 respondents it will impact in both manner.
So it is essential for ZARA to conduct proper analysis before developing strategies.
Theme 4: Advantages gain by ZARA during expanding its business practices in emerging
marketplace
Q4. What are the advantages gain by ZARA during expanding its
business practices in emerging marketplace?
Frequency
a) Increase Customer's base 6
a) Positively
b) Negatively
c) Both
0 2 4 6 8 10 12 14 16
7
8
15

b) Expand Marketplace 7
c) Access to new talent 5
d) Get pool of resources 4
e) All of the above 8
Interpretation: Through data gather by researcher it can be determine that there are numbers of
benefits gain by a company through globalisation. Like according to 6 they able to increase their
customer's base, 7 says it lead to market expansion and in respect of 5 it will help in accessing
new talent. Moreover, according to 4 respondents globalisation help in getting pool of resources
and in context of 8 people it will leads to all these advantages for a company.
Theme 5: Disadvantages faced by ZARA while expanding its business practices in
emerging marketplace
Q5. What are the disadvantages faced by ZARA while expanding its
business practices in emerging marketplace?
Frequency
a) Increase competition 6
b) Enhance expenses 8
c) Minimise safety of net programs 7
d) Develop new policies 4
e) All of the above 8
6
7 5 4
8
a) Increase Customer's
base
b) Expand Marketplace
c) Access to new talent
d) Get pool of
resources
e) All of the above

Interpretation: According to data gather by researcher there are several disadvantages faced by
a company such as in respect of 6 it increase competition, 8 says it enhance expenses and
according to 7 it minimise safety of net programs. Moreover in respect of left 12 respondents 4
think globalisation required development of new policies and according to 8 all these
disadvantages are occur.
Theme 6: Strategies ZARA can adopt for overcoming limitation related to implementation
of globalisation
Q6. What are the strategies ZARA can adopt for overcoming
limitation related to implementation of globalisation?
Frequency
a) Conduct proper market research 9
b) Hire and train employees 6
c) Develop budget 5
d) All of the above 10
0
3
6
6 8 7 4
8

Interpretation: There are several strategies which a company may adopt in order to avoid
disadvantages of globalisation. In this respect researcher collect data from 30 respondents and
from that 9 say company need to conduct proper market research, 6 think firm must hire and
train employees and according to 5 they need to develop new budget. Moreover in respect of left
over 10 they need to conduct all these strategies for avoiding disadvantages of globalisation.
Theme 7: Strategies that ZARA can implement while moving into growing marketplace
Q7. What are the diverse strategies that ZARA can implement while
moving into growing marketplace?
Frequency
a) Joint Venture 10
b) Partnership 5
c) Direct Exporting 8
d) Licensing 7
Interpretation: There are several strategies which can be adopted by a company in order to
grow business at marketplace. In respect of this researcher gather data from 30 respondents from
9
6 5
10
a) Conduct proper
market research
b) Hire and train
employees
c) Develop budget
d) All of the above
a) Joint Venture b) Partnership c) Direct Exporting d) Licensing
0
2
4
6
8
10
10
5
8 7

which according to 10 they can adopt joint venture, 5 says they can implement partnership
method and in respect of 8 they can implement direct exporting. Moreover in respect of left over
7 respondents they can use licensing method for expanding business at international level.
Theme 8: ZARA management need to develop new policies, rules and regulation while
entering into emerging marketplace
Q8. Do you think ZARA management need to develop new policies,
rules and regulation while entering into emerging marketplace?
Frequency
a) Yes 15
b) No 15
Interpretation: Researcher gather data from 30 respondents on the topic did ZARA need to
develop new policies, rules and regulation while entering into emerging marketplace. From
which 15 says yes they need to develop whereas in respect of left over 15 they say no they didn't
need to develop anything.
Theme 9: Adopting globalisation ZARA able to grow their business in new emerging
marketplace
Q9. Do you think by adopting globalisation ZARA able to grow their
business in new emerging marketplace?
Frequency
a) Yes 25
b) No 5
15 15 a) Yes
b) No

Interpretation: According to data gather by researcher out of 30, 25 says that by adopting
globalisation ZARA able to grow its business at new emerging marketplace whereas leftover 5
think just opposite of that i.e. they not able to grow business.
Research Outcomes
Covered in PPT
Conclusion
By analysing above discussed point it can be summarised that now a day it is essential for
all companies to adopt globalisation so that they can conduct their business operations and
functions in effective manner at international level. There are several new trends which can be
adopted by a company when they expand their business at new or growing marketplace such as
geopolitical realignment, new resources, technology and many more. Along with this, there are
numbers of advantages as well as disadvantages which are gain by a company through
globalisation. Advantages which firm attain are enhancement in customer's base, improve
procedure or working, target huge marketplace, improve communication and so on. On the other
hand it also have some limitations such as enhance competition, decrease safety of data,
development of new policy required and many more. There are also different types of strategies
which can be adopted by a company in order to expand business in growing marketplace such as
partnership, joint venture, direct exporting, franchise and many other methods.
Recommendation
According to the above situation and analysis there are some recommendations or
suggestions that based on respective research such as researcher can adopt another research
a) Yes b) No
0
5
10
15
20
25
25
5

methodology for gathering informations i.e. they may implement interview method. In respect of
that they can conduct interviews session with respondents so that they can gather more in-depth
informations. Along with this, project manager may also develop proper planning so that they
not faced issue related to time, budget and other resources. In order to maintain time and budget,
interview method will be more appropriate because it required low cost as well as project
manager may schedule interview of respondents according to time allotted to them for gathering
information related to research topic.
Research Alternative
There are several alternative methods which a researcher may adopt in order to conduct
their work in effective manner so that they can attain research objectives successful. In respect of
respective research researcher may adopt interview methods because it is less expensive as well
as project management can conduct scheduling of interview according to time allotted to them
for conducting research. Moreover through researcher also able to gathering more authenticate
and reliable informations.
Reflection
While conducting research on such as wide topic that is related to globalisation I able to
know numbers of things which will help me in my future career. I able to know that in today's
time globalisation is necessary for every firm because through it they able to attain number of
benefits such as increase customer's base, target market, goodwill, brand name and image,
conduct cultural exchange and so on. On the other hand I also get to know that there are some
limitations or disadvantages of globalisation such as it increase competition, management need
to develop new strategies, increase expenses and so on. Along with this, there are numbers of
skills, abilities and knowledgable which I am able to enhance during the research work. I also get
to know that I have some skills that denotes as my strengths and there are some which are my
weakness and I need to improve that skills. Such as my skills which are my strength are
communication, understanding, team building etc. as well as skills that are my weakness are
adaptation skills, problem solving and so on. Moreover, I also able to enhance my knowledge
about the different research methodologies such as quantitative, qualitative, primary and
secondary methods.

Along with this, while conducting research there are some issues faced by me such as I
not able to communicate with my team members effectively but after that I conduct meeting in
order to decide common language in which whole team members are conduct communication.
We all team members come together and discuss issues which we are facing while conducting
interaction but while this there are limitations from that we go through such as confit due to
different language, culture and perspective. So for that we come up with new idea i.e. of
conducting communication in common language which we all know.