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Zara's Internationalisation

In: Business and Management

Submitted By susibourke
Words 710
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INTRODUCTION
Zara is one of the world’s most successful fashion retailers operating in 59 countries.
However, there is little research about the firm in English as the majority of publications have been written in Spanish. This paper seeks to address this gap in the literature by examining the internationalisation process of Zara. This study adopts an in-depth case approach based on extensive secondary research. Literature published in both English and Spanish has been reviewed, including company documents such as annual reports. The paper starts with a brief overview of the global textile and clothing industry, followed by the case study of Zara. The main part of the case examines the key aspects in the internationalisation of Zara namely: motives for internationalisation, market selection, entry strategies, and international marketing strategies. In the final section, comparisons are made between Zara and two of its main competitors, H&M and Gap.
The global textile and clothing industry
The removal of all import quotas in the textile and clothing industry from January
2005, involving the unrestricted access of all members of the World Trade
Organization (WTO) to the European, American and Canadian markets is considered a key driving force in the development of the clothing sector (Keenan, et al., 2004).
This new scenario has created opportunities for large exporters like China and India 2 that are considerably increasing their market share whilst at the same time creating challenges for European Union member states in order to remain competitive internationally. The major trends that are restructuring and characterising the textile and clothing sector are as follows:
• The European textile and clothing industry is characterised by fragmented production with a large number of small and medium-sized companies mainly...

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