International Marketing (MKT3130/32)
Seminar Tutor: Kinnari Pancholi
Student Name: Iglika Karakusheva
Student Number: M00537208
Word count: 3256
The following report analyses important issues in international marketing strategy in the context of Zara, a Spanish fashion retail chain of Inditex Group. The report studies Zara’s international markets as well as assesses the risk elements involved, including the political, economic, and socio-cultural factors. The learning outcomes also include evaluation and assessment of Zara’s international marketing strategy and its international marketing decisions and activities. The report will also delve on Zara’s entry strategy for foreign markets.
The report will commence with a brief introduction about the term international marketing and information about Zara’s internationalization. This will be followed by detailed answers to questions in the case study.
This will include a discussion on the theory that best represents the company’s international expansion strategy. It will be followed by an evaluation of the competitive strategy of Zara’s closest rivals and an assessment of their future with regard to global retailing in the fashion world. Next will be a discussion on the benefits and drawbacks of Zara’s (Inditex’s) multi-brand store strategy. The subsequent section will review whether Zara has successfully fought off the “risk of cannibalization” as a result of its multi brand strategy. The last section of the report will weigh the pros and cons of Zara’s joint venture with Tata in India.
The report will conclude by drawing from the significant points discussed in each section. Thus, the report will be a comprehensive representation of the Spanish retailer Zara’s international marketing strategy.
Table of Contents
Executive Summary 2
1. Zara’s Internationalization Strategy 4
2. Evaluation of Competitive Strategies of World’s leading Retailers 560 6
3. Pros and Cons of Zara’s (Inditex’s) multi-brand store strategy 8
4. Zara’s approach to minimize risk of “Cannibalization” 10
5. Advantages and Disadvantages of Zara’s joint venture with Tata in India 12
Globalization of the marketplace is a reality of 21st century and consequently international marketing field has developed enormously. As competition for international markets intensifies, no company can escape increasing competition from foreign firms. International marketing includes all the business activities that direct the flow of an organization’s goods/services to consumers/users in more than one country (Ghauri & Cateora, 2014). Spanish retailer Zara has had considerable international success-reflected by its 2000 stores located in leading cities across 88 countries (Industria de Diseño Textil, S.A, 2016). Hence, Zara’s international marketing strategy makes for an interesting case study for all international retailers as well as management...