The international expansion of Zara into a foreign market

Maxime Morel (880414-P318) Luis Lopez Gallego (870702-P872) Amandine Sarzaud (881221-P202) Aloïs Phommasene (890928-P951) Ayse Karavilan (870521-P541)

Introduction ‡ The flagship chain store of Indetex Group. History ‡ Was founded in La Coruna (Spain) in 1975 ‡ In 1988 they opened the f rst store in a foreign country: Portugal ‡ After they moved to Uni ted States . Mexico and Europe ‡ In 2004 first store in China ‡ Presence of Zara in the world 2 .

Market Selection ± First step (1975-1988 ) ± Cautious expansion (1989-1996) ± Aggressive expansion (1997-2010) ‡ ‡ ‡ Market Entry Strategies ± Own subsidiaries (Europe and in South America) ± Joint ventures (joint venture with the German firm Otto Versand ) ± Franchising (Saudi Arabia. 3 . homogenization of consumption patterns across countries). Internationalization process of Zara ‡ Saturation of the domestic market and in 2010. Andorra or Malaysia) ‡ Oil Stain strategy.I. Zara is in 74 countries with more than 1 900 stores. Kuwait. Spain joined European Union in 1986 (globalization of the economy.

Zara s strategy (1/2) Imitation of curent trends 4 .II.

5 .II. Zara s strategy (2/2) ‡ Key Success Factors  Vertical integration  Centralization  Local production: quality  Marketing strategy ‡ Value Chain Control:  Costs control and reactivity (D-15 model).

Conclusion ‡ Market selection combined with market entry strategy explain Zara s success in the world. ‡ Vertically integrated business model ‡ Time is an important factor 6 .

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