Zara and Zara Homes Brands of Inditex Essay

  • Length: 5 pages
  • Sources: 2
  • Subject: Globalization
  • Type: Essay
  • Paper: #10307809

Excerpt from Essay :

Zara and Zara Homes

Brands of Inditex

Brand Portfolio of Inditex as Per 2006

Trade Policies of Saudi Arabia

Causative Agents of the Problem

Nature of Saudi Market

Reserved Approach

Target Market Of Zara And Zara Homes In Saudi Arabia

Women And Fashion Industry Of Saudi Arabia

Theocratic Approach

Saudi Flavor Of Fashion And European Approach

Alternative Approach To Invade Saudi Market Profitably

Implementation Of Alternative

Implications Of The Alternative

Zara and Zara Homes

The internationalization is a process whereby an organization extends its business activities and transactions across the border of its national origination to enhance its brand image and corporate standing. Owing to the importance of this phenomena Zara and Zara Homes have also adapted to the international environment to enhance the profitability by entering and invading new markets to sell the fashion apparels. The internationalization process of the Zara and Zara Homes is organized by an extremely well make and authentic strategy. Irrespective of the well designed marketing and new market invasion patterns Zara and Zara Homes faced immense challenges in executing there business activities in the Saudi market.

The internationalization of Zara and Zara Homes the two cash cows of the Inditex have raised and set the bars high for the adaptability of the organizations to go global and at the same time maintaining their themes. But the invasion of Zara and Zara Homes in Saudi Arabia was the real challenge where Inditex had to encounter a drastic social, political and theocratic pressure. The Saudi market is regarded a conservative market where adaptability for fashion and fads has a limited access.

The cumulative term that defines the effective working and global recognition of Zara and Zara homes is its effective vertical integration and the unique business model. The organization initially urged to maintain the socio- economic similarities and adapted ethnocentric approach of invading the new market but is now modifying its majors of invasion by entering the new markets on geocentric basis.

A number of strategies were used by Zara and Zara Homes so as to overcome the market entry barrier in Saudi Arabia and as a consequence the Zara and Zara homes has presently 11 outlets in Saudi Arabia since its first outlet in 1999.

Background Of Zara And Zara Homes

Inditex (Industria de Diseno Textil) is the breeder company of Zara and Zara Homes founded by Amancio Ortega Gaona in the year 1975. Inditex is regarded as the prevalent fashion point that has approximately 3890 outlet across 70 countries of the Europe, its functions are effectively observed in Europe, North and South America, Asia and Europe. Many fashion retail chains across the world are functional under the textile guru Inditex but Zara is the most prevalent fashion retail of Inditex. The other prominent names of Inditex retail chains include Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Homes. As per the existing corporate standing of Inditex more than 200 companies are proudly associated with this fashion par excellence benchmark (Lopez, 2009).

Ever since the inception of Zara it has been evolved to be the greatest of all times fashion retailer chains. At the time of its inception in 1975 at A Coruna (Spain) it has grown out of the boundaries of one country to 68 countries with its amid presence across the globe in the form of 1400 stores. The global presence and existence of the Zara is speaking volumes of the cultural diversity and the authenticity of the fashion fads and trends that are designed by Zara. The brilliance of the Zara products is a result of the dominating 200 professional designers, who render there ceaseless services to the organization. The blend of cultural diversity and fashion professional has reduced the gaps of fashion tastes and preferences across culture and has induced a new sense of fashion sensitivity and elegance. The availability of various retail chains running under the head of Inditex are here by designed to cater each target of the potential segment effectively and profitably (Fan, 2009).

Zara Homes is a new project of retail chains launched by Inditex, currently it has 220 stores across 20 countries Zara Homes is located at Artexio (A Coruna). The stores and the products are designed by the competitive designer staff of the organization with a mission of cultivating fashionable, elegant yet affordable houses across the world. Either…

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