Christian Deing
                    Simon Luyken
                    Julika Reusse
                Sebastian Stratmann
   ...
competitive advantage

Competitive advantage is defined as:

• a performance feature, which is silhouetted against other
 ...
INDITEX

   Brand                  Number of stores

    ZARA                       1501

  Bershka                       ...
ZARA

• 1501 stores in 71 countries in 2008

• Employees 25.000

• Employed €1,050 million of the company´s capital in 200...
ZARA

• Headquarter in Arteixo, outside La Coruna

• Manufacturing most of the fashion-sensitive products internally

• ZA...
Competitors

            H&M            The GAP         Benetton




stores      1.700          3.100           5.500

cou...
Comparison: ZARA vs. H&M

-vertical integration               -all production outsourced
⇒Short lead times                ...
Comparison: ZARA vs. Benetton

- three different modes for   -one main mode for
expansion:                    expansion:
1...
Comparison: ZARA vs. GAP


- vertical integration       - outsourced all production
⇒Short lead times            ⇒Long lea...
What‘s unique about ZARA?

- freshness (fast production and distribution to offer the latest
 fashion)


-Change 75 % of t...
Case Study 2:

ZARA: Fast Fashion




                                              Group 7:
                             ...
Table of contents

1 Introduction

2 Zara’s Business System

3 Pros and cons of Zara’s activity architecture with regard t...
1 Introduction

-   Inditex:
     - umbrella group of Zara and 5 other apparel chains
     - founded in 1963 in Galicia, S...
2 Zara‘s business system

Activity circle:




                   Case Study 2: ZARA: Fast Fashion, Group 7   4
Design

-   creative teams

-   different sources for information: store managers, consumption
    information system, TV,...
Sourcing and Manufacturing

-   assistance of purchasing offices in Barcelona and Hong Kong

-   more than 200 external su...
Distribution

-   own distribution center in Arteixo

-   satellite center in Argentina, Brazil and Mexico

-   center wor...
Retailing

-   consists of merchandising and store operations

-   stores placed in premier shopping streets and centers

...
3 Pros and cons of Zara‘s activity architecture

-   most significant advantage: reduced cycle time due to the
    impleme...
3 Pros and cons of Zara‘s activity architecture

- different product precommitement:




                   Case Study 2: ...
3 Pros and cons of Zara‘s activity architecture

Design:

+ store managers gather information directly at point of sale

+...
3 Pros and cons of Zara‘s activity architecture

Sourcing and Manufacturing:

+ in-house production of 40% of the garments...
3 Pros and cons of Zara‘s activity architecture

Distribution:

+ cost savings by centralized distribution center

-   cap...
3 Pros and cons of Zara‘s activity architecture

Retailing:

+ flexibility of operating in the best spots by using joint-v...
Thank you very much for your
          attention!




       Case Study 2: ZARA: Fast Fashion, Group 7   15
Harvard Business Case Study “ZARA: Fast Fashion”

Question 3:
Evaluate ZARA’s global strategy in light of the
McKinsey rec...
Agenda




• Introduction to ZARA’s international operations
• Recommendations by McKinsey
• Evaluative comparison
• Summa...
Agenda




• Introduction to ZARA’s international operations
• Recommendations by McKinsey
• Evaluative comparison
• Summa...
Introduction to ZARA’s international operations




                   largest and most internationalized chain of Inditex...
Agenda




• Introduction to ZARA’s international operations
• Recommendations by McKinsey
• Evaluative comparison
• Summa...
Five approaches to launch a self-reinforcing cycle of
benefits propelled by access, scale and expertise


         Choose ...
Agenda




• Introduction to ZARA’s international operations
• Recommendations by McKinsey
• Evaluative comparison
• Summa...
1
    McKinsey recommends retailers to optimize the value
    chain by focusing on slivers


                   Companies ...
1

    Selected Slivers of ZARA’s Value Chain


                                          Slivers and Processes

    Desig...
2
    McKinsey recommends to establish partnerships to be
    successful internationally


                               ...
2
    ZARA has established controlled partnerships in
    production and downstream activities


               Manufactur...
3
      McKinsey recommends the investment in intangible
      assets as the new source of competitive advantage




     ...
3
      Regarding the investment in intangible assets, ZARA
      focuses on innovative technologies

     Brand and reput...
4
    McKinsey recommends retailers to strive to be
    “expense and capital light”




                              Keep...
4
      ZARA has taken numerous measures to keep expenses
      and capital requirements low

                       Opera...
5
    McKinsey recommends the exploitation of
    opportunities to arbitrage in order to reduce costs

        Cross-borde...
Optimal expansion path depends on starting situation
McKinsey strategic control map



            Initial situation…     ...
ZARA heavily invested in technology to increase
profitability before starting major global expansion

                    ...
Agenda




• Introduction to ZARA’s international operations
• Recommendations by McKinsey
• Evaluative comparison
• Summa...
ZARA almost completely lives up to McKinsey’s
requirements; few improvements to be realized

           Approaches recomme...
Thank you for your attention.
Case Study Zara
    “What do you think of Zara’s past international growth
    strategy? Evaluate, in particular, its stra...
Agenda



             Introduction – What is ZARA?


             International Growth Strategy


                       ...
Introduction
What is ZARA?



    Foundation of Inditex (Industria de Diseno
    Textil) by Amancio Ortega in 1975

    ZA...
International Growth Strategy
Market Selection - Overview



    Waterfall Strategy

    Market Selection Process:

      ...
International Growth Strategy
Market Selection - Evaluation




 Enough time to explore markets from the                 R...
International Growth Strategy
Market Entry - Overview




 21.11.2008                     Case Study ZARA: Fast Fashion   6
International Growth Strategy
Market Entry - Evaluation




                                     Company-owned stores

 Hi...
International Growth Strategy
Marketing Approach - Overview




 21.11.2008                     Case Study ZARA: Fast Fash...
International Growth Strategy
Marketing Approach - Evaluation




 21.11.2008                     Case Study ZARA: Fast Fa...
International Growth Strategy
Best Way to grow ZARA now (1/2)



ZARA needs to be more present in more
countries worldwide...
International Growth Strategy
Best Way to grow ZARA now (2/2)




Establish a department whose task is
to visit the franch...
Thank you for your attention!

         Questions?
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Zara1

  1. 1. Christian Deing Simon Luyken Julika Reusse Sebastian Stratmann Anna Worster 1. What are the sources of Zara’s competitive advantage? What is unique compared to H&M, The Gap and Benetton?
  2. 2. competitive advantage Competitive advantage is defined as: • a performance feature, which is silhouetted against other competitors • has to be tenable and economic • is able to reach dimensions like price, time and quality, e.g. cost advantage or differentation advantage
  3. 3. INDITEX Brand Number of stores ZARA 1501 Bershka 573 Pull and Bear 567 Massimo Dutti 461 INDITEX Stradivarius Oysho 444 363 ZARA Home 237 Uterqüe 24 Total 4.170 Quelle: www.inditex.com
  4. 4. ZARA • 1501 stores in 71 countries in 2008 • Employees 25.000 • Employed €1,050 million of the company´s capital in 2001 72% of the total capital of INDITEX •Revenue of €6,264 million in 2007 67% of the total of INDITEX
  5. 5. ZARA • Headquarter in Arteixo, outside La Coruna • Manufacturing most of the fashion-sensitive products internally • ZARA´s designers produce about 11.000 distinct items during the year competitors: 2000-4000 items • Products are shipped to well-located stores twice a week • Finished goods in stores within four to five weeks (entirely new designs) in two weeks for modifications of existing products
  6. 6. Competitors H&M The GAP Benetton stores 1.700 3.100 5.500 countries 33 19 120 employees 68.000 152.000 8.000 designers 100 n.s. 300 revenue €9.6 billion $15.8 billion €2.085 billion
  7. 7. Comparison: ZARA vs. H&M -vertical integration -all production outsourced ⇒Short lead times ⇒Long lead times - engages many designers -60 % fewer designers ⇒Originate designs in a few weeks - one distribution center -a distribution center in each country ⇒Better survey over inventory ⇒High costs ⇒ low costs - expand very fast -expand very slow (stores in 39 countries) (stores in 8 countries) - stores as a „face to the world“ - no focus on store makeups ⇒Competitive advantage
  8. 8. Comparison: ZARA vs. Benetton - three different modes for -one main mode for expansion: expansion: 1.Franchise systems 1. Licensees 2.Company owned stores 3.Joint Ventures ⇒Competitive advantage
  9. 9. Comparison: ZARA vs. GAP - vertical integration - outsourced all production ⇒Short lead times ⇒Long lead times - fast expansion in 39 - slow expansion in 5 countries countries ⇒Competitive advantage
  10. 10. What‘s unique about ZARA? - freshness (fast production and distribution to offer the latest fashion) -Change 75 % of the merchandise on display every 3 or 4 weeks ⇒The frequency of customer visits rises ⇒Scarcity -few advertisement ⇒Customers need to visit stores to get the newest fashion ⇒Save costs for publicity
  11. 11. Case Study 2: ZARA: Fast Fashion Group 7: Matthias Freese, Thorsten Hiedels Kirstin Jansen, Sabine Kürten Aleksandra Ludwa, Jennifer Montag Johanna v. d. Asseburg Case Study 2: ZARA: Fast Fashion, Group 7 1
  12. 12. Table of contents 1 Introduction 2 Zara’s Business System 3 Pros and cons of Zara’s activity architecture with regard to The Gap, H&M and Benetton and in light of the changing environment Case Study 2: ZARA: Fast Fashion, Group 7 2
  13. 13. 1 Introduction - Inditex: - umbrella group of Zara and 5 other apparel chains - founded in 1963 in Galicia, Spain - Zara: - headquarters in Arteixo, Spain - till 2002: 507 stores in 42 countries - position: “medium quality fashion clothing at affordable prices“ - competitors: The Gap, H&M, Benetton Case Study 2: ZARA: Fast Fashion, Group 7 3
  14. 14. 2 Zara‘s business system Activity circle: Case Study 2: ZARA: Fast Fashion, Group 7 4
  15. 15. Design - creative teams - different sources for information: store managers, consumption information system, TV, internet, industry publications, film, trend spotters, ready-to-wear fashion shows - first sketches about nine months before start of a season - presentation in certain key stores - determined prices Case Study 2: ZARA: Fast Fashion, Group 7 5
  16. 16. Sourcing and Manufacturing - assistance of purchasing offices in Barcelona and Hong Kong - more than 200 external suppliers - 60% of the clothes produced externally, 40% internally - 450 workshops where garments are sewed Case Study 2: ZARA: Fast Fashion, Group 7 6
  17. 17. Distribution - own distribution center in Arteixo - satellite center in Argentina, Brazil and Mexico - center works on a dual-shift basis - equipped with mobile tracking system - delivery upon Europe takes about 24-36 hours, outside Europe 24-48 hours - scheduled shipments by time zones - establishment of a second distribution center at Zaragoza in 2003 Case Study 2: ZARA: Fast Fashion, Group 7 7
  18. 18. Retailing - consists of merchandising and store operations - stores placed in premier shopping streets and centers - set high value on presentation of store window displays: prototypes at headquarters - continuous training on their personnel - very low advertising expenditures, no fashion shows - main retailing-tactic: create a sense of scarcity - aim: reduce inventories at marked-down prices Case Study 2: ZARA: Fast Fashion, Group 7 8
  19. 19. 3 Pros and cons of Zara‘s activity architecture - most significant advantage: reduced cycle time due to the implementation of the quick response system Case Study 2: ZARA: Fast Fashion, Group 7 9
  20. 20. 3 Pros and cons of Zara‘s activity architecture - different product precommitement: Case Study 2: ZARA: Fast Fashion, Group 7 10
  21. 21. 3 Pros and cons of Zara‘s activity architecture Design: + store managers gather information directly at point of sale + design department organized in flat structure - Zara has more staff employed although it is smaller than H&M higher labor costs, but lower risk of fashion miss (as H&M) + continuous tracking of customer preferences numerous variations of items + presentation of items in key stores reduced failure rates Case Study 2: ZARA: Fast Fashion, Group 7 11
  22. 22. 3 Pros and cons of Zara‘s activity architecture Sourcing and Manufacturing: + in-house production of 40% of the garments better control of most fashionable clothes short lead times + offers always the latest fashion trends + change of MFA: no import quotas and reduced tariffs no more barriers for outsourcing production, but larger benefits for H&M - increasing complexity of cross-border intermediaries higher coordination costs Case Study 2: ZARA: Fast Fashion, Group 7 12
  23. 23. 3 Pros and cons of Zara‘s activity architecture Distribution: + cost savings by centralized distribution center - capacity problems with only one center when Zara keeps expanding establishment of second distribution center - H&M: closer to the market by decentralized distribution center in each country does not need scheduled shipments by time zones Case Study 2: ZARA: Fast Fashion, Group 7 13
  24. 24. 3 Pros and cons of Zara‘s activity architecture Retailing: + flexibility of operating in the best spots by using joint-ventures + standardized offering: 85%-90% basic items satisfaction of many markets with little effort even easier in the future as tastes assimilate + standardization of store window displays consistent image low costs but: ignorance of individual preferences - low advertising expenditures missing of the chance to gain more customers no communication of social responsibility as Benetton does Case Study 2: ZARA: Fast Fashion, Group 7 14
  25. 25. Thank you very much for your attention! Case Study 2: ZARA: Fast Fashion, Group 7 15
  26. 26. Harvard Business Case Study “ZARA: Fast Fashion” Question 3: Evaluate ZARA’s global strategy in light of the McKinsey recommendations in the assigned reading1. How does it compare? 1: Incandela, D.; McLaughlin, K.L.; Smith Shi, C. (1999): Retailers to the World, in: The McKinsey Quarterly, Vol. 3, pp. 84-97.
  27. 27. Agenda • Introduction to ZARA’s international operations • Recommendations by McKinsey • Evaluative comparison • Summary of conclusions and recommendations
  28. 28. Agenda • Introduction to ZARA’s international operations • Recommendations by McKinsey • Evaluative comparison • Summary of conclusions and recommendations
  29. 29. Introduction to ZARA’s international operations largest and most internationalized chain of Inditex 282 stores in 32 countries outside Spain (in the end of 2001) expansion began in 1988 in Oporto, Portugal rapid internationalization between 1998-1999: 16 countries ZARA is expanding very rapidly in comparison to other retailers like H&M, who added only 8 countries in 20 years Source: McKinsey (1999) HBS Case Study “ZARA”, Gruppe 8 4
  30. 30. Agenda • Introduction to ZARA’s international operations • Recommendations by McKinsey • Evaluative comparison • Summary of conclusions and recommendations
  31. 31. Five approaches to launch a self-reinforcing cycle of benefits propelled by access, scale and expertise Choose your sliver - decisions about which The “virtuous circle” 1 sliver to own, which to control without owning and which to off-load are necessary Get comfortable partnering – access to 2 new distribution systems and brand equity Invest in intangible assets - the new 3 source of competitive advantage 3. Expertise 1. Access • brands and reputation • technology and know how • talent and skills Keep expenses and capital require- 4 ments low – by centralization, restructuring and outsourcing 2. Scale Exploit opportunities to arbitrage – 5 by value proposition arbitrage and/or cross-border arbitrage Source: McKinsey (1999) HBS Case Study “ZARA”, Gruppe 8 6
  32. 32. Agenda • Introduction to ZARA’s international operations • Recommendations by McKinsey • Evaluative comparison • Summary of conclusions and recommendations
  33. 33. 1 McKinsey recommends retailers to optimize the value chain by focusing on slivers Companies have to decide which slivers of the value chain to own, partly-own or to off-load • It is not always efficient to own all parts of the value chain Reason: • Some processes have very high outsourcing potential Outsourcing decision drivers: Cash Flow Capital Requirements Risk Competitive Advantage Source: McKinsey (1999) HBS Case Study “ZARA”, Gruppe 8 8
  34. 34. 1 Selected Slivers of ZARA’s Value Chain Slivers and Processes Design: Sourcing: All design related processes are fullfilled In ZARA’s Responsibility All sourcing activities are done externally. Fully outsourced inside the company. Manufacturing: Logistics: Basic-items are manufactured in Asia. Fashion Logistics are completely outsourced. About Partly outsourced items are more risky and therefore produced 75% are deliveredoutsourced Fully by truck. The remeining by ZARA‘s fully owned factories ones are manily organized by airmal. Sales: Distribution: ZARA delegated store management espacially All distribution processes are supervised and Partly outsourced in smaller and riskier countries by using In ZARA’s Responsibility executed from one central and fully-owned franchising. Joint Ventures are used if prime distribution center in Spain. shopping space is not avaiable for ownership. ZARA decided carefully on which slivers to concentrate and which to off-load Therefore ZARA succeeded in implementing McKinsey’s advice concerning the value chain HBS Case Study “ZARA”, Gruppe 8 9
  35. 35. 2 McKinsey recommends to establish partnerships to be successful internationally Build partnerships • To get leads • To enhance the distribution system • To build brand equity in new markets Remain in control of these alliances ! Source: McKinsey (1999) HBS Case Study “ZARA”, Gruppe 8 10
  36. 36. 2 ZARA has established controlled partnerships in production and downstream activities Manufacturing ZARA has long-term relations with suppliers CONTROL and subcontractors Sales In smaller and riskier countries, ZARA uses Franchise Systems CONTROL Joint Ventures are used in mature and more established markets like for example Germany ZARA has successfully implemented McKinsey’s recommendations regarding partnerships HBS Case Study “ZARA”, Gruppe 8 11
  37. 37. 3 McKinsey recommends the investment in intangible assets as the new source of competitive advantage Brand and reputation IT, technology, skills People and talents • Distinct value proposition • Invest in proprietary • Scarcity of qualified with adjustments to technology to managers challenges HR region/country specific - improve customer access policies differences - raise service levels - increase business • Build up talent pools in • Personality of the brand efficiency several stages must appeal to target group and be reinforced at every contact point • Total visibility of the brand through all appropriate communication channels Source: McKinsey (1999) HBS Case Study “ZARA”, Gruppe 8 12
  38. 38. 3 Regarding the investment in intangible assets, ZARA focuses on innovative technologies Brand and reputation IT, technology, skills People and talents • adjustment of marketing • strong investment in • incentive-intense payment mix to country individual technology since 1990 model for store managers needs - innovative JIT - variable parts based on - experience gained in manufacturing system (co- store performance flagship store developed with Toyota) • low hierarchies - price according to WTP - advanced - store managers as - slightly different portfolio telecommunication system entrepreneurs • concentration on store - sophisticated consumption • advanced training program image information system • But: scarcity of store high brand awareness managers is main barrier to • comparably little further expansion investments in advertising, - 90% recruited from within esp. in foreign markets ZARA almost meets the McKinsey recommendations w.r.t. intangibles ZARA should invest more in international brand power using various media channels and put stronger emphasis on international recruitment HBS Case Study “ZARA”, Gruppe 8 13
  39. 39. 4 McKinsey recommends retailers to strive to be “expense and capital light” Keep expenses and capital requirements low Realize greater purchasing benefits and margins by reducing capital commitment and costs Manage a low need for capital Decide about global sourcing Centralize overlapping by franchising or renting rather activities and IT investments category groups, e.g. finance than owning stores functions Source: McKinsey (1999) HBS Case Study “ZARA”, Gruppe 8 14
  40. 40. 4 ZARA has taken numerous measures to keep expenses and capital requirements low Operation Impact • integrated just-in-time manufacturing system, short lead and cycle times, central distribution center with direct shipping low storage costs to the stores • intense market research incl. interviews with low failure rates, store managers and product development reach planned sales • long-term leases instead of owning • different business types to go global low financial strain (own stores, joint ventures and franchising) • flat hierarchies, e.g. design department • main organization by divisions flexibility and shorter communication lines (women, men and children) • production of price-sensitive items outsourced • minimum amount of advertising low production and selling prices, but with • lean administrative organization expected hold up margins ZARA strategy efficiency control corresponds to McKinsey’s advices ZARA successfully controls its costs, realizing beneficial impact on operational results HBS Case Study “ZARA”, Gruppe 8 15
  41. 41. 5 McKinsey recommends the exploitation of opportunities to arbitrage in order to reduce costs Cross-border arbitrage Value proposition arbitrage • focus on price level when • no real differentiation among product entering a new market portfolio across the different countries • forecasting of prices on local • 85%-90% of products are common market prices not on own costs • no design of products for specific • entering markets with a higher preferences of only one country preference for apparel (Italy) • standardized reporting systems • same business model in similar types high rate of absorption of countries of buying power amortization of centralized concepts by rolling them out across many markets ZARA is implementing the suggestions of the McKinsey concept HBS Case Study “ZARA”, Gruppe 8 16
  42. 42. Optimal expansion path depends on starting situation McKinsey strategic control map Initial situation… …determines global strategy high Address performance problems first. Then 1 grow by a) investing in intangibles/ load-off (4) unattractive value chain parts and/or b) (2) Super- penetrating home market and global expansion Experts leaguers Performance Expand the business into new markets 2 through organic growth or acquisitions; skills transfer and synergies are crucial success factors (1) (3) Incumbents Integrators Invest in intangible assets and take further 3 means to increase performance low Size 4 Stabilize the successful business concept small large Source: McKinsey (1999) HBS Case Study “ZARA”, Gruppe 8 17
  43. 43. ZARA heavily invested in technology to increase profitability before starting major global expansion ZARA’s expansion path high (4) • high investments in intangible assets (2) Super- (esp. IT) in the 1990s, i.e. before Experts leaguers major phase of international expansion Performance • having a strong performance, ZARA grows in size on a global scale, (1) (3) opening 16 stores from 1998-1999 Incumbents Integrators (282 stores in 32 countries today) low Size small large ZARA has gone the recommended global expansion path, starting from an incumbent’s position HBS Case Study “ZARA”, Gruppe 8 18
  44. 44. Agenda • Introduction to ZARA’s international operations • Recommendations by McKinsey • Evaluative comparison • Summary of conclusions and recommendations
  45. 45. ZARA almost completely lives up to McKinsey’s requirements; few improvements to be realized Approaches recommended Further improvements to be by McKinsey addressed by ZARA in the future 1 Choose your sliver 2 Get comfortable partnering • increase international investments 3 Invest in intangible assets in advertising • increase international recruitment efforts 4 Keep capital requirements low 5 Exploit opportunities to arbitrage Source: McKinsey (1999) HBS Case Study “ZARA”, Gruppe 8 20
  46. 46. Thank you for your attention.
  47. 47. Case Study Zara “What do you think of Zara’s past international growth strategy? Evaluate, in particular, its strategy for market selection, its mode of entry, and its marketing approach. What is the best way to grow Zara now?“
  48. 48. Agenda Introduction – What is ZARA? International Growth Strategy Market Selection Market Entry Marketing Approach Best way to grow Zara now 21.11.2008
  49. 49. Introduction What is ZARA? Foundation of Inditex (Industria de Diseno Textil) by Amancio Ortega in 1975 ZARA is one of the six apparel chains of Inditex (completely independent and organized individually) ZARA is Inditex’s most important chain ZARA has over 500 stores in 30 countries Fashion Collection changes twice a year (autumn/winter & spring/summer) Benetton, H&M and the GAP are their most important global competitors Unique selling proposition is due to short cycle times 21.11.2008 Case Study ZARA: Fast Fashion 3
  50. 50. International Growth Strategy Market Selection - Overview Waterfall Strategy Market Selection Process: Countries which are similar to ZARA’s home market Macro Analysis Micro Analysis Preconditions for entering: Minimum level of economic development Low entry barriers Oil-Stain Strategy 21.11.2008 Case Study ZARA: Fast Fashion 4
  51. 51. International Growth Strategy Market Selection - Evaluation Enough time to explore markets from the Risk of competitors copying ZARA‘s outside business model and entering markets Test if their business model can be before ZARA is able to applied to foreign markets (to reduce -> Increasing market barriers risk) High headquarter costs for only a few No danger of loosing control shops in the beginning Possibility to meet the special cultural Time-and-money consuming process demands Lately, ZARA decided to grow faster, enabled through their bigger experience and equity which is a step in the right direction 21.11.2008 Case Study ZARA: Fast Fashion 5
  52. 52. International Growth Strategy Market Entry - Overview 21.11.2008 Case Study ZARA: Fast Fashion 6
  53. 53. International Growth Strategy Market Entry - Evaluation Company-owned stores High level of influence over the behavior Require many resources such as high of the employees capital commitment Ability to control the Brand presentation at POS Franchising Opportunity to generate fast growth Lack of control -> Image losses without needing a lot of equity Dependency on their partner Overcoming cultural barriers Joint Ventures Sharing core competences Dependency on a partner -> need of a More control of the actions taken trust base Different methods enable ZARA to meet the demand of every country 21.11.2008 Case Study ZARA: Fast Fashion 7
  54. 54. International Growth Strategy Marketing Approach - Overview 21.11.2008 Case Study ZARA: Fast Fashion 8
  55. 55. International Growth Strategy Marketing Approach - Evaluation 21.11.2008 Case Study ZARA: Fast Fashion 9
  56. 56. International Growth Strategy Best Way to grow ZARA now (1/2) ZARA needs to be more present in more countries worldwide to strengthen the brand name and their significance Growth potential: Russia, East & North Europe, Italy, Australia, South Africa Exploration of new Markets in a short time period -> Danger of competitors growing Increase the amount of shops rapidly & drastically to play a greater role in the people‘s mind 21.11.2008 Case Study ZARA: Fast Fashion 10
  57. 57. International Growth Strategy Best Way to grow ZARA now (2/2) Establish a department whose task is to visit the franchise stores Use E-Commerce Bigger focus on marketing (e.g. internet, (TV) commercial, billboards) People who bought online any of the following products or services during the last three months ZARA has big growth potential but they need to find the optimal balance between risk and innovative methods to address their customers 21.11.2008 Case Study ZARA: Fast Fashion 11
  58. 58. Thank you for your attention! Questions?
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