This paper is about the strategy adaptation to entry in Brazil market. It includes the study of the current international strategy of Uterque, the same successful business model as logistic and design leader that Inditex group. In addition, the analyses of the Brazilian market justifies the selection of implementing country. Table of Contents 1.
Explain what features of Zara travel well and which ones do not. Evaluate its past strategy for Product market selectionits mode of entry e. What is the best way to grow the Zara chain internationally?
Where do you think what region would make most sense?
Indixt group from North West Spain owns the business. Zara was first opened in They had been one of the most successful brands in the world having innovation at its core.
The production line of Zara is not outsourced to low-cost countries to ensure authenticity in designs and productions. Many other companies in this segment do outsource there production to low cost countries. Zara is not very fond of advertising there brand.
Instead they open new stores in different locations. Zara has always been known for the efficient customer support and effective supply chain they have in place. Their main focus lies upon the loyal customer. Zara uses its store and its customers as its main promotional tools.
Prices are set centrally with Spain as the core center and other international market as destination. Spain has least prices and prices of the international store varies as per the distribution cost associated with the overall value chain.
Store location has always been a critical factor both for domestic as well as international market. Zara Vertica, uses prime locations as their priorities for establishing a store.
Opening up of stores at prime location are decided as per the overall analysis of the local environment where opportunity persist for the company so as to achieve maximum profitability at the end.
Professional store decorators are used to prototype the interior design and shop window display centrally and then replicated internationally. Zara standardizes important strategic component such as window display, location, store layout, interior design, store display rotation, information systems, customer service and logistics.
To suit the local preferences rest of the items are synchronized accordingly. Zara follows three theories when one is talking about internationalization Carmen, Uppsala internationalization model, Transaction cost analysis model, and the network model. First one which is Uppsala internationalization model Hongjoo, says that a firm using the experience gained over time intensifies the commitment towards the international market Andrea, Art lies at the heart of the new Uterqüe store concept, which is inspired by the Mid-Century movement of the s.
This concept was unveiled in its new flagship stores in Braga (Portugal), Monterrey (Mexico) and Granada (Spain). Uterqüe presents the perfect looks for Autumn/Winter An exclusive collection of women's garments, accessories and footwear for an unmistakable style. Zara internationalization strategy allows the company to achieve a fast production and an international distribution of products, implemented by the creation of an international presence with wholly owned subsidiaries in the majority of foreign countries, joint venture agreements and franchising contracts in .
A professional with international experience developing several projects & with strong business multicategory & multisector experience. Charismatic, talented, strategic, creative, analytical, pragmatic, results oriented, multitasking, leadership person with “hands on” yunusemremert.com: CMO en INDITEX (Uterqüe).
International Strategy Consultant at Council of Fashion Designers of America (CFDA) Zara Home, Oysho, Uterque) at Inditex. Retail Director Netherlands (brand Bershka) at Inditex. Inditex sales may have risen only 2% in Q1 but it was still a record quarter and without currency exchange effects it would have powered ahead by 7% as both online and stores expansion again proved a winning formula.