Insight into Zara as a born global
An insight into Zara as a Born Global
Executive Summary
Zara was first established just outside of Spain in1988, in 1994 Zara expanded into France and Mexico (Bhardwaj et al, 2010). Zara is owned by the INIDEX group in which it contributes to 64.8 per cent of total company sales (Inidex annual report, 2011) which was a 10 per cent growth on the previous fiscal year. Zara now has over 1830 stores worldwide across 82 markets in 64 countries, with plans to move into Korea, Egypt, Ukraine and Montenegro and a further 80 store to open in Russia. This research paper identifies Zara as a born-global company and a global leader in fast fashion by firstly differentiating between a born global and gradual global company. Secondly we investigate three main internationalisation theories which will help us gain greater understanding into the success of Zara and finally importance in which the marco-environmental factors and marketing mix play in creating a company which is unique, controlled and adaptable to new markets.
Zara as a born global
Understanding the difference between a gradual-global versus a born global fashion retailer is key to identifying Zara as a born global. Traditionally, firms gain knowledge over time about the marco-environmental factors and the level of investment in which they should commit to (Galvan-Sanchez, et al., 2010). Examples of companies that use the ‘gradual global process’ include Mark & Spencer and the GAP. Born-global’s, according to Bhardwaj et al, 2010 focus on early and rapid internationalization. Therefore we identify that the difference between a born global and a gradual global lies in the international process and three main theories; knowledge-sharing and entry mode, resource based, and physic distance.
Let’s look at these internationalisation theories in more detail by first identify the difference between a born global and a gradual global approach. A Born global is assertive and perceives the world as one market place
Executive Summary
Zara was first established just outside of Spain in1988, in 1994 Zara expanded into France and Mexico (Bhardwaj et al, 2010). Zara is owned by the INIDEX group in which it contributes to 64.8 per cent of total company sales (Inidex annual report, 2011) which was a 10 per cent growth on the previous fiscal year. Zara now has over 1830 stores worldwide across 82 markets in 64 countries, with plans to move into Korea, Egypt, Ukraine and Montenegro and a further 80 store to open in Russia. This research paper identifies Zara as a born-global company and a global leader in fast fashion by firstly differentiating between a born global and gradual global company. Secondly we investigate three main internationalisation theories which will help us gain greater understanding into the success of Zara and finally importance in which the marco-environmental factors and marketing mix play in creating a company which is unique, controlled and adaptable to new markets.
Zara as a born global
Understanding the difference between a gradual-global versus a born global fashion retailer is key to identifying Zara as a born global. Traditionally, firms gain knowledge over time about the marco-environmental factors and the level of investment in which they should commit to (Galvan-Sanchez, et al., 2010). Examples of companies that use the ‘gradual global process’ include Mark & Spencer and the GAP. Born-global’s, according to Bhardwaj et al, 2010 focus on early and rapid internationalization. Therefore we identify that the difference between a born global and a gradual global lies in the international process and three main theories; knowledge-sharing and entry mode, resource based, and physic distance.
Let’s look at these internationalisation theories in more detail by first identify the difference between a born global and a gradual global approach. A Born global is assertive and perceives the world as one market place