Essays on Zara Internationalisation Plans to Vietnam Case Study

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The paper "Zara Internationalisation Plans to Vietnam" is a perfect example of a marketing case study. Nowadays, the alternative of conducting business overseas is not reserved only to the large corporations, but also the small enterprises. Expansion of the global market has been attributed to globalisation as well as the growing interdependence of national economies. Internationalization of the business because results in increased revenues; higher sales volume, and makes the company learns how to cope with customers’ demands from different cultures. Business internationalization according to Burdus and Alpopi (2010) offers the entrepreneur the capability to think globally, to understand, appreciate as well as respect different behaviours, values, beliefs, and management practices of individuals and companies from different countries ad cultures.

The report focuses on Zara's internationalization plans for Vietnam by focussing on the country's attractiveness/entry strategy. Part One Zara overview and Expansion Strategy Zara is a Spanish retailer that deals with clothing and accessories and was founded by Amancio Ortega together with Rosalia Mera in 1975. Zara is an Inditex group’ s flagship retail store, and its main aim is democratizing fashion by providing the latest fashion at cheap prices.

According to Lopez and Fan (2009), Zara’ s just-in-time (JIT) manufacturing and vertical integration of design; low inventory rule; flexible structure; fast response policy as well as cutting-edge IT allows the company to respond swiftly to the changing demands of the customers. Even though the products in all of its stores across the globe are classically the same, the company’ s pricing strategy varies across the markets. Zara has been successful in its internationalisation; mainly because of, they can adjust price positioning. Through price discrimination, the company charges the ideal prices for its products in various markets; in so doing, maximising the value sales.

The company’ s positioning strategy seems to focus more on the emerging markets and the prices in the Asia Pacific markets are exceeding as compared to the EU market prices. This is a deliberate attempt according to Lahouasnia (2013) with the goal of positioning itself higher within the apparel retail market.

References

Berliner, T., Thanh, D. K., & McCarty, A. (2013). Inequality, Poverty Reduction and the Middle-Income Trap in Vietnam. Brussels: European Union.

Burdus, E., & Alpopi, C. (2010). The Internationalization Of Business As An Option In The Marketing Strategy Of The Entrepreneur. Management & Marketing Journal, 8(1), 49-56.

Dawei, G. (2008). Internationalization And Entry Strategy Of Enterprises: A Case study of Chinese firm: Huawei. Dissertation, University of Halmstad, Halmstad, Sweden.

Kapusta, M. (2016, March 15). Zara to open stores in Vietnam, New Zealand and other markets. Retrieved from Fashion Week: http://fashionweek.com/zara-open-stores-vietnam-new-zealand-markets/

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Lahouasnia, L. (2013). The Internationalisation of Retailing. London: Euromonitor.

Lopez, C., & Fan, Y. (2009). Internationalisation Of Spanish Fashion Brand Zara. Case Study, Brunel University, Uxbridge, London.

Meyer, K. E., & Hung, N. V. (2003). Foreign Investor’s Entry Strategies and Sub-national Institutions in Emerging Markets. Frederiksberg, Denmark.: DRC Working Papers.

Mo, Z. (2015). Internationalization Process of Fast Fashion Retailers: Evidence of H&M and Zara. International Journal of Business and Management, 10(3), 217-236.

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Senauth, F. (2012). The Making of Vietnam. Bloomington, IN : AuthorHouse.

Thi, T. D. (2013). Doing Business in Vietnam: The New Zealand experience. Dissertation , Auckland University of Technology, Auckland.

Yan, A., & Luo, Y. (2001). International Joint Ventures: Theory and Practice. Armonk, New York: M.E. Sharpe.

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Zentes, J., Morschett, D., & Schramm-Klein, H. (2012). Strategic Retail Management: Text and International Cases. New York: Springer Science & Business Media.

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