Inditex Strategy

Multinational Corporation - business enterprise with manufacturing, sales, or service subsidiaries in one or more foreign countries, also known as a transnational or international corporation. These corporations originated early in the 20th century and proliferated after World War II.

There are many opportunities available for companies willing to venture into new, international markets. Reaching more customers and therefore, turning a larger profit are two fairly obvious reasons for companies to consider global expansion. However, the potential benefits do no end there. Expanding to international markets can hold less obvious, yet extremely beneficial appeals such as access to new and different talent pools, grander output requires great advances in efficiency, and international expansion can, in some cases, aid in “future proofing” the company.

The corporation might be excited to find they are utilizing the First-Mover Advantage by moving into an emerging market to set up shop (Kokemuller, n.d.). The company may even anticipate building success by becoming a recognized brand in the industry but there is risk that this can back fire and a second corporation may come in and steal that anticipated success through better innovation and even cheaper product and labor. In addition, the country that is manufacturing the product could decide to make a similar product forcing the other country out.

So for such move they should follow an international strategy where it applicable to all markets. Firms can gain various benefits from international strategies such as increased market size, greater returns on

What is a multinational company? The best explanation of what a multinational company is simply company which operates in two or more countries. With the competition within the global market, exploration for expanding into new markets with products and services is a necessity in order to stay ahead of the competition. Gaining and maintaining a competitive edge in the global business world increases an organization’s chances of a more promising future. In order to consider reaching out into the global markets for a particular service or product, a company needs to be very successful where there company originated. In order to be a leader in the global business world, an organization has to successfully displayed financial control as well as

If That does not favour the company they will invest. In terms of tax planning, companies may find it difficult to expand due to the tax ramifications. Country X (Foreign Country) may have a high tax burden on companies that choose to expand their operations abroad. Other reasons may include the means of advertisement, the start-up costs, and the political market.

The people of those countries will be mad if that company moves out. Since companies have gone global, their officers are also from different parts of the world. Their headquarters are in one place and factories in another. It starts to get hard to tell where the company belongs.

Doing business in such different countries ask you to be flexible and need to be able to adapt quickly to the local demand and cultural differences. Your strategy has to be adapted to the ethical standards, cultural norms, but also the way the business is going locally. In others world, the company has to localize its distribution and marketing strategy to the requirements of the local market.

* With so many large markets available, there is tons of revenue to be made overseas.

Established in 1975 in A Coruña (North – Eastern Spain) by Amancio Ortega, Inditex has grown rapidly to become one of the largest fashion retailers in the whole world competing with the American Gap and the Swedish Hennes & Maurizt (H&M). “In addition to Zara, the largest of its retail chains, Inditex has another seven commercial formats: Bershka, Stradivarius, Massimo Dutti, Oysho, Pull and Bear, Skhuaban and Zara Home (all of the targeting different age and disposable income segments). The group also includes more than a hundred companies associated with different textile, manufacturer, infrastructure and distribution businesses” (Inditex 2006 p.2). Inditex is listed since 23 May 2001

In the business industry, if businesses want to export their goods and services to other countries, they must become familiar with and adopt international and global strategies. Consequently, there are three types of international and global business strategies. The first type is international, which entails conducting a significant amount of activities outside the home country, yet its focus remains on the home market (Fung, 2014). The second type is multinational, which consists of operating in multiple countries, yet the headquarters is in its home country, not to mention that the competitive advantage will vary by country (Fung, 2014). The third and final type is global, which is when the organization treats the whole world as one market and one source of supply, not to mention, that its competitive advantage is contingent of common brands, standardized products, and global scale production (Fung,

In order to implement a better strategy in a company, one of the important factors that need to be a concern is the commitment of top management. It is significant to cognize that the top management is seriously dedicated. Top management must create and hold a series of principles and regulations, statements must state its commitment to JIT procurement, production, distribution strategy which product lines are affected. Besides that, the function of the machinery, the duty of every worker, the resources that available for implementation, the timetable for implementation are involved in the execution of the JIT strategy.

The main argument for organizations to become multination is to operate their businesses in different countries so that they can diversify their market beyond the national boundary. Multinational presence will enable the firms to operate their business activities in different countries for acquiring benefits regarding business and technical efficiency (Collins, 2013). This will reduce the cost of the product by obtaining cheap labor, tax advantage, large and untapped market share and technical advancement. For instance, Toyota, a car manufacturing multinational company, operates its different

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become