Managing Across Borders: Zara's Expansion in Asia

MANAGING ACROSS
BORDERS
EXECUTIVE SUMMARY

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In the globalisation, business expanded over the boundaries across the continents so as to
ensure higher level of growth and profits. Zara is one of the prime examples in this case
when it expanded its business in many parts of the world. This report gives the idea
regarding how Zara manages its operations across the globe. In their expansion the type of
approaches for internationalisation they have used over the year also been discussed in the
later section of this report. It also describes the expansion process that is being used in the
firm and the strategies they have used for making this process smoother. In the last section
of this report the challenges and problems that Zara is facing across borders especially in
the Asian region which its dream market has been showcased.
Contents

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INTRODUCTION.................................................................................................................................1
ZARA expansion in Asia.......................................................................................................................2
Internationalisation approaches.............................................................................................................2
Expansion process.............................................................................................................................3
Strategies utilised by Zara for their expansion...................................................................................4
Problems and challenges that Zara is facing while expanding their business in Asia............................6
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................8

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INTRODUCTION
Globalisation has been noticed in all the regions of the world and it has made expansion plan
of various companies across the borders a bit easier. Globalisation is generally considered as
the process using which different types of firms develop international influences or begins to
operate at international level (Emilie, 2014). There are several reasons that promoted
globalisation like transportation, technology development, communication etc. Expanding
across border shave been mainly done by understanding the dynamics of the market as well
as the factors that could enhance the profit share of the firm. Since the issues in the market
have increased at a much faster rate hence managing operations across borders seems to be a
difficult task.
To make the business successful a whole lot of strategies needs to be properly implemented.
Zara is one of the biggest fashion brands in all the in the global fashion industry especially
having support of huge parent company Inditex have strengthened its position in the market.
Its expansion in Asian market which is a highly populated was a great move. Like other
organisations, Zara also used its available resource along with the brand name it has in the
market for its expansion in Asian region. There are various approaches to international which
Zara used at different stages. Challenges in the Asian market have increased over the years as
number of companies has come up in the industry. They have utilised several kinds of
strategies for the development of organisation and hence making their expansion plans
smoother. In the implementation of strategies different departments have played a different
role.
Fashion Industry has made their presence in different regions of the world and so is in Asia
(Crofton and Dopico, 2012). Zara is a global leader in fashion industry which has also
stretched its business in different parts of Asia This European fashion giant has lot of
opportunities in the Asian regions due to the highly populated regions. For meeting the Asian
audience they have opened their manufacturing unit in China as well as they are availing their
raw materials from countries like Bangladesh and India. In the increasing competitiveness
several new kinds of challenges have emerged in Asian market for Zara hence they need to
confront all these with the help of different kinds of strategies. Having several operational
units in various parts of the Asian region has made the management of business across border