Strategies for ZARA's Entry into Emerging Markets

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