This initial statement is a plan to disclose the intention of beginning a Zara Store in within a new market . Zara is an international retail company that deals in clothing and accessories. The company is based in Spain and was founded in 1975. Currently it has several stores in different parts of the world especially Europe and the Middle East where majority of its stores are located. Zara being a successful company within the area of clothing and accessories, it can easily develop a new product and make impressive sales in short time. There are number of brands and the company sales in its stores including the famous pull and bear, and Massimo Dutti . Each year, the company launches new designs of cloths to keep up with the trend in the fashion industry and to deliver the needs and wants of its customers. The designs are based on both local and worldwide fashion trends.
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Because the company has established a well known brand in the fashion industry worldwide, opening another store in any new market will not be a big issue for the company. It is for this reason that the company should open a new store in Melbourne Australia to expand its market. Currently, the customers within this particular target market are offered with a variety of attire to choose from, many local and international brands are already available in the market. Considering the fact that Melbourne is such a diverse place, it would be nice to give the dwellers a taste of indigenous fashion and clothing material from other parts of the world .
Businesses either small or large are rapidly being globalized because of various reasons, extending a business internationally has now become very much desirable and feasible in today’s rapidly changing business environment (Mead, R (1994)). To make such thing happen successful technology has played a major part in it. Businesses at present need more than just well-made products and well designed services to succeed in the global market. In order to compete and succeed internationally there are number of factors to consider and look in to, most important decisions to make are market selection and complete understanding of the economic, cultural and political environment of these markets. Business managers, Owners, Stake holders and leaders who are associate with Zara needs to be well aware of the challenges they might face if they are willing to enter in to a completely new market, for this purpose top level managers needs to have complete skills of managing functional areas such as marketing and finance, promotions, interdependence of international markets, norms that are part of other cultures and other risks associated to it (Mead, R (1994)).
Global Marketing for ZARA
Terminologies or phrases like global village and world economy turn out to be popular. Marketing has become a complete subject and marketing has been developed into a systematic plan since the global business existence. Even by companies like Zara it requires proper planning and deep analysis of all the process that is going into operation (FAO 1997)
To make a business globalize requires planning, together with careful consideration to global cultural and economical factors as well as likeness in products, price, marketing, promotion, and other internal and external factors. Markets like Melbourne which is culturally very much diversified, people of all backgrounds and cultures are present, the company needs to be very innovative and creative to meet the needs of such customers.
There are some external and internal factors that play very crucial role in global marketing and can be a reason of success or downfall of an industry whether developing or established. At first place there is need to comprehend the aspects that could grow into internationalism and globalization (Crawford 1997).
Here we are going to demonstrate different factors that are part of external and internal nature and have influence over marketing strategy when going global. There is a hell of difference between national and international business strategies and advertising and marketing plan.
A very interesting example to better understand the factor that hinders the global marketing is the language difference, cultural norms and values. This is very common when a European company like Zara launches its project offshore to the Western areas (Crawford 1997).
Industry at a Glance:
The retail industry of Australia has seen several tough years, with overall cautious consumers spending, lower prices, higher rents and most importantly global financial crises, all playing important roles to driving revenue down by 0.7% (IBIS, 2012) This is where Zara can take advantage, as it’s a well known brand for around the world with exceptional supply chain in practice and selling products at comparatively cheap prices.