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The Characteristics Of The Internationalization Process Of Zara

Decent Essays

In this report we will analyze the company Zara, which is a well-known Spanish clothing and accessories retailer. The company was chosen because of the fact that it became very successful and also because of its big internationalization. We decided to analyze this enterprise because there is a wide portfolio of other fashion retailers but undeniably this company is the most recognizable and is leading amongst many other fashion stores. The retailer Zara is a part of the Inditex group, which is the world’s largest apparel retailer. The Inditex group consists of brands, such as Massimo Dutti, Stradivarius, Pull & Bear, Oysho, Bershka and many others.
In our report we will only focus on the successful story of Zara. Zara has 2,104 stores in 88 …show more content…

Afterwards we will describe the main foreign market entry modes that Zara used in their process of internationalization. We will also focus on the factors that affected the decisions of Zara when choosing the right entry modes. Ultimately, we will discuss the structures and controls that Zara used to improve their business strategy. The whole report will focus and give an overview of the strategy that Zara used to become successful, as well as it will help us get a better understanding of the processes that occur inside the company.

Internationalization of Zara:
The internationalization of Zara began in 1988 with the opening of the first store in Oporto, Portugal. Though before Zara started to focus on foreign markets, they first needed to become successful on the domestic market. The internationalization of Zara can be divided into three parts: domestic market, slow expansion and aggressive expansion (Mo Z., 2015). To understand the internationalization process of Zara better, we will discuss each phase of the process in detail.
Domestic market (1975- 1987):
Through the period of 1975- 1987, Zara expanded its network of retail stores in many big cities of Spain that reached a population grater than 100,000 inhabitants (Ghemawat and Nueno,

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