1. Which theory is the best representative of zara’s (Inditex’s) internationalization?

Zara's best theory of internationalization is alliances with fashion companies in other

countries that can get to know the culture and demands of customers for expansion very
well. The franchises that have tsar around the world, for the most part, are allied with
local emperors where their stores have those who receive a lower percentage of power
and acquisition than the one who handles tsar, but these local companies are in charge of
hiring staff and supplying stores according to new trends and ways of dressing up to the
geographical place.

2. Please evaluate the competitive strategy of the three world market leaders. Which of the
three will be the future winner with regard to global retailing in the fashion world?

Zara's competitors, which are GAP and H&M. They each have advantages and
disadvantages.

- GAP, it has a more closed market, since the cost of its products is higher than
H&M and Zara and its stores are in less quantity, but they have a great family tradition
that reinforces the reliability of their businesses.

- H&M, it has had a great increase and its expansion throughout the United States
has been impressive, which led to positioning itself in Latin America and some Asian
countries, fashion is very versatile and handle several options for all ages, in addition to
being accessible garments. Their products have always been innovative; however, they
have not spread throughout Europe as Zara has done

With all this, it can be said that according to the experience in the Zara fashion industry,
its strategy of inventing in the mood of new premises that in parades or walkways, which
has made it more profitable, its way of franchising around the world, makes it the most
feasible for further expansion. Zara is a brand that denotes prestige, elegance and urban
fashion that has made it perfect for all ages and has been positioning itself in all countries
of the world.

3. What are the advantages and disadvantages of zara’s (Inditex’s) multi-brand store
strategy?

Advantages:

1. Most of its production is located in Spain, where the brand was born, about 50% of
its production.
2. Franchising has given it status and respect in different cultures around the world.
3. Great popularity due to its trajectory, quality and vanguardism.

Disadvantages:
1. Perhaps the prices have not been as competitive as those of H&M which is Zara's biggest
rival at present, since the points of sale have increased in the last few years around the
world.
2. Zara has not entered the U.S. market where it could take power and position itself with a
great advantage in the largest and most profitable fashion company in the world.

4.How successful do you think zara has been in meeting the ‘risk of cannibalization’ as a
consequence of the multi-brand strategy?

Its multi-brand strategy has proven to combat its cannibalization problems very well. By
targeting different markets and segments with product differentiation and its rapid
catalog updates, which are approximately four weeks, as well as its age-specific market
according to the brands' clothing intentions, which are between 0-45 years old, but in
some cases this range is reduced.

5.What are the advantages and disadvantages of going into a joint venture with Tata in
India?

Advantages:
1. Tata is a well-established local brand that has helped Zara enter a market other than
Europe.
2. Zara benefits from Tata's infrastructure and human resources in the Asian culture.
3. India is the second most populous country in the world.

Disadvantages
1.Cultures are very diverse, as well as their values and ethics, which could cause some
scandal or bad reputation at some point in time.
2. Tata can take advantage of all that training and experience of Zara which could weaken
it.
3.The catalogs and dress code are far from Zara's standard, which generates higher
expenses in the creation of the clothes.