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  • Zara's Rapid International Expansion Strategy

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    Awais Ch
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    Zara had rapidly expanded internationally by the end of 2001, operating 282 stores across 32 countries, with the majority in Europe but also locations in North America, South America, the Middle East, and Japan. Zara's international sales had reached 1506 million, and it had four times as many countries as H&M and six times as many countries as The Gap despite those competitors being larger. Zara prefers direct ownership of stores over franchising, using franchising only in noncore markets and joint ventures in core markets when direct ownership would not yield enough store locations. Zara's marketing is relatively standardized across countries with limited advertising, centralized store design, and salesperson uniforms selected from central options.

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    Zara’s International Expansion

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    Zara had rapidly expanded internationally by the end of 2001, operating 282 stores across 32 countries, with the majority in Europe but also locations in North America, South America, the Middle East, and Japan. Zara's international sales had reached 1506 million, and it had four times as many countries as H&M and six times as many countries as The Gap despite those competitors being larger. Zara prefers direct ownership of stores over franchising, using franchising only in noncore markets and joint ventures in core markets when direct ownership would not yield enough store locations. Zara's marketing is relatively standardized across countries with limited advertising, centralized store design, and salesperson uniforms selected from central options.

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    © All Rights Reserved
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    25 views4 pages

    Zara's Rapid International Expansion Strategy

    Uploaded by

    Awais Ch
    Zara had rapidly expanded internationally by the end of 2001, operating 282 stores across 32 countries, with the majority in Europe but also locations in North America, South America, the Middle East, and Japan. Zara's international sales had reached 1506 million, and it had four times as many countries as H&M and six times as many countries as The Gap despite those competitors being larger. Zara prefers direct ownership of stores over franchising, using franchising only in noncore markets and joint ventures in core markets when direct ownership would not yield enough store locations. Zara's marketing is relatively standardized across countries with limited advertising, centralized store design, and salesperson uniforms selected from central options.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Zaras international Expansion

    At the end of 2001, Zara operated


    282 stores in 32 countries.
    Euorpe

    186

    North America

    35

    South America

    29

    Middle East

    27

    Japan

    International sales of 1506 million

    Issues
    Market Selection
    that Zara has expanded far more
    rapidly into far more countries than
    H&M or The Gap despite those
    competitors greater size.
    it is present in four times as many
    countries as H&M in 2001, and six
    times as many as The Gap.

    Market Entry
    Zara has a revealed as well as
    declared preference for direct
    ownership
    franchising tends to be used in
    noncore markets
    joint ventures as an expansion
    strategy in core markets when going
    it alone would fail to yield enough
    store locations of the appropriate
    sort

    Marketing
    relatively standardized across countries
    in the past
    advertising and promotions are limited
    the design of stores window displays
    and interiors is centralized to a
    significant extent
    the uniforms that salespeople wear in
    the store have to be selected from
    several options developed centrally.

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