ZARA: Research on Globalisation Strategies for Emerging Markets

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Added on  2023/01/19

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This research project investigates the globalisation strategies of ZARA, a prominent apparel retailer, focusing on its expansion into emerging markets. The study aims to identify the diverse strategies employed by multinational companies when entering growing marketplaces. It explores the advantages and disadvantages of globalisation, examines new trends, and analyzes various methods such as franchising, direct exporting, and partnering. The project employs both qualitative and quantitative research approaches, gathering data through literature reviews and questionnaires to provide a comprehensive understanding of ZARA's approach to international business. The research highlights the importance of adapting to market-specific regulations, addressing logistical challenges, and overcoming communication barriers. The findings offer valuable insights for businesses seeking to expand globally, emphasizing the need for thorough market analysis and strategic planning to achieve successful international operations.
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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.
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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
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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
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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
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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
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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
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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:-
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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.
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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
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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?
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