In this report, Zara’s global market entry strategies and sustainability are defined. There are three tasks defined in this report. Environmental analysis, global market entry, and corporate strategies exist. Every type of business is affected by external factors so, there is a strong need to analyze those factors that impact the business growth. Zara as the fashion retailer brand also facing the troubles to investigate its operations in the external market. To determine better plans and generate higher growth, the management can utilize greater sources. With the development of planning and managing the overall plans, the firm’s advance is strongly attached that raising the business decisions and updating the most appropriate plans in the future.

The environmental analysis (external and internal):

In this section, there is a detailed analysis of the environment of the Zara company define. Zara is a global fashion brand that provides various variety in terms of fashion and the advanced eras of success. To determine the broad plan and manage the broad activities, the firm capability can be raised. There are different relevant frameworks used to determine the environmental analysis and generate Zara’s success that impacts the overall capability of the business.

Relevant frameworks:

1. PESTEL analysis:

It is the framework that defines the external factors that directly impact the growth and progress of the company. PESTEL analysis depends on the political, economic, social, technological, environmental, and legal points that impact the business growth and its tools. Zara company’s external environment is affected by global factors because the demand for the company’s products is high due to the nature of the business. Zara company’s innovation in the international market can be strongly attached through organizational and sustainable operations as required in the future.

• Political: The European Trade Laws and the tax rates are the major political forces that impact the progress of Zara’s clothing brand in the global market. To enter into the new market, the company’s overall possibilities of getting success becomes increase. Recently expanding the operations of Zara company in multiple countries needs to consider the government policies of those regions that are impacted by the greater plans. Zara company already doing business in China and India so, it can be difficult by changing the laws of the government.
• Economic: Like the supply or demand chains, the raw material availability and the labor also play a vital role in business expansion. As the Spain clothing brand, Zara can get cheap labor because the unemployment rate in Spain is high which affects the business values and its overall success. The labor cost is low and the raw material availability are the key economic factors that impact the business values. Zara’s performance is affected by economic changes and the number of responses to determine the flow of resources. The global economy plays a significant role in managing the expansion of business and generating higher success in the given era of the environment.
• Social: Zara company is a well-aware brand that communicates its service and results in affordable prices. In recent times, the popularity of e-commerce or online shopping has been increasing. Zara company is putting effort to improve the connection between the company’s strategic plans and its observable compliances related to the given terms. Zara company making a smooth logistic process to add up to customer satisfaction and generate overall motivation. The company targets the communities as well as its age people in search of trendy accusers.
• Technological: Zara company has a well-designed website that can help to create a robust online presence for the job that grabs the entire attention of potential customers and maintain broad policies in the future. Zara company have a seamless supply chain process as well as a political effort that uses advanced technology. The reliable sources of the firm enhance the rate of retention of the customers and generate the RFID technologies that help to solve the issues of inventory of Zara firm. Different technological factors impact the progress of Zara company and its production process. Zara is a global brand that improves the best processes and ensures a greater number of activities that can be spread from time to time.
• Environmental: Various environmental issues do not directly influence the retail business of Zara. The practice of prioritizing the sustainable environment has been sorted everywhere related to inspiring businesses to take up the ideas of eco-friendly. As the parent company of Inditex, Zara facing energy efficiency issues. To protect the environment and develop eco-friendly strategies, Zara company invests a lot of amounts into the process of business success. The company had already pledged that it will manufacture environmentally sustainable products to repatch the issues and include animal welfare. Zara’s environmental protection directly impacts the business growth and its strategic tools related to the broad and specific operations that can be observed in the future.
• Legal: when the brand operates in different territories then the business ought to be impacted by the laws of certain areas. Zara company gracing different legal factors that impact the business strengths and the sustainable policies to get the change and observes the internal core practices that can be suffered or generate future growth. The countries where Zara company operates its functions directly consolidate and emerge in the reliable planning that builds or sustains future decisions. Due to copyright issues and trademark planning, the business decisions will be reliable or actively participate in trendy terms. Copyright and patent strategies also affect the legal framework of the Zara company.

2. VRIO framework:

To evaluate the internal environment of the company, the VRIO framework plays a significant role. To get higher success and transform the broad policies, the firm’s overall decisions become strongly attached. Valuable, rare, imitable, and organizational activities directly impact the business growth as its internal environment.

So, the VRIO analysis of the Zara company explores the flexibility of the supply chain management operations and its network with other departments, the position of the Zara firm in the market, the Team that leading by the particular leader strategies, and the awareness of the brand are the key terms that affect the business values and its broad strategic decisions. This environmental analysis of the business impacts certain change and generate the most efficient trends that can be sustained or valued in the future. All of these competitive advantage strategies increase the broad plans and generate the most valuable tactics. Leadership is an important part of the success of a company’s growth.

Critical factors emerging from the analysis:

Here are some critical success factors that emerged from the analysis of the Zara company.

• Zara is a global fashion retailer brand that uses advanced technology to improve internal policies and has strong intellectual property rights.
• Zara company has a strong brand awareness that motivates it to reach a certain plan and generate the best decisions related to the demands of the target market.
• The company has a strong leadership plan that manages the operations and activities of the teams.

Sources of the competitive advantage:

Here are some sources of the competitive advantage of Zara company.

• Zara company has a s strong network and the operations of the supply chain management that is responsible to improve the quality of the material and provide a variety of resources.
• The company deals with the latest trends in fashion due to the needs as well as demand so the customers impact the business progresses and the number of detailed activities.
• Zara company has a strong market position due to the variety of products in the clothing industry and targets every age group.

Maintain or build an advantage in the competitive environment:

• By becoming a supplier with a strategy of low cost, Zara company can achieve the supply chain management strong networking technique. This technique directly improves the business process and maintains the entire growth activities.
• By developing differentiated as well as innovative products or key services, the performance of the firm can get different values.

By improving the satisfaction of the labor and generating broad planning, the management of Zara company can get a strong position in the market and achieve a competitive advantage.

Strategy in the Global Environment:

This task is about the strategies to enter the global environment. To determine the broad activities and manage the valuable operations, the company’s strategic thinking can be observed in the future. To expand the operations of the firm in the global environment, the management of the business can sustain future practices. Global market entry strategies irately motivate the company to expand its operations and generate a strong position related to the entire relevancy of the business capabilities. Zara is a global clothing brand so, the adapting of strategies to expand its operations in the given market becomes increase that affects the broad planning.

Relevant model:

From the implementation of the Yip model, different factors impact the business growth and its performance while expanding the resources and operations into real-life. The market driver, cost driver, competitive driver, and government drivers are the main components of Yip’s model that motivate the Zara company to enter into the new market and expand the resources of operations with the relevant situation. To make the proper plan and generate the best decisions, the business capabilities can be observed or built in the future.

• Market driver: Zara company’s similar needs of the customers and the implementation of transferable marketing are the key activities that improve the business success and its advanced policies. In the clothing and fashion industry, the needs and preferences of customers are changing with the change of time.
• Cost driver: The analysis of scale economies as well as the cost of developing the products are the key cost factors that impact Zara’s entry into the foreign market. Zara company develops advanced strategies to get broad policies and ensure the best activities to tackle in the future. The analysis of scale economies and the sourcing efficiencies also force Zara to enter into the business success
• Government driver: The policies related to trade, tax, and the host government impact Zara company’s values and its efforts to expand its operations into the international market. With various business processes and broad planning, the firm’s decisions can be classified through strategic thinking.
• Competitive factors: The companies will face global competition that considers becoming global firms. Zara company’s largest competitor is H&M which improves the better practices and organizes the core decisions in valuable terms. Have to consider becoming the global one, the business strengths and its entire reputation can be suffered in the future.

Zara’s motives for the expansion:

The success of Zara’s company becomes raised through the motives that operate the company’s overall plans.

• To increase the awareness of the target market about the company’s new products and trendy items, Zara expands its operations into the international market.
• To generate higher revenue or sales, Zara will lead to expand its operations in the global market.
• To build a strong position for Zara company in the global clothing retailer market, the company will expand its broad terms and ensure a greater number of activities.

Direct their global entry:

The success of Zara company becomes increases when the target market is aware of the innovative and unique items or the trendy clothes the company. So, it generates higher sales and revenue that directly relate to trendy clothes to improve business decisions and get the particular era of success. Zara’s global expansion motives depend on the generation of broad activities to improve the possible activities and transform the given areas of success as required in the future. To expand the operations of the business into the global market, these motives will force the employees and staff of Zara.

Internationalization strategies:

Different strategies help the company to expand its resources and operations while entry into the international as well as the global market. Exporting, franchising, and merging are the key strategies that motivate the Zara company to expand the operations of the business into the international market. Various activities and broad possibilities directly ensure the number of decisions that can be suffered through the appropriate planning.

The sales of Zara company directly impact the business values and its overall success that can be suffered to get the particular change. All of these strategies that motivate the Zara company to expand its operations into the international market will lead to the most specific outcomes.

Global market entry strategies and choosing the best one:

Among the three global market entry strategies in which the exporting the products from the home country to the host country, starting the franchise in another country, and the getting merging strategies by committing to the business transformation, the operations of the firm can be tackled in the future. To manage the organizational success and managing the broad practices, the firm’s decisions can be suffered or valued in the future. To get stronger global market entry strategies and generate the best plans, the business strengths can be suffered in the given areas.

After analyzing these strategies, it is clear that for the success of Zara company’s global expansion, the exporting strategy is best that improve the broad plans and generate the proper practices in the given eras. To choose the best strategies and improve the better operational plans, the firm’s internal growth practices become strongly held that increases the business values and its overall activities in the future. Exporting the products of Zara company from Spain to other countries is the best strategy that improves the operations and generates advanced values in the given terms. Exporting is one of the best and most sustainable strategies that improve the operations of the business success. To get strong plans and raise the brand’s image of the company in the global market, the determination of the business planning can be succeeded.

Corporate Strategy:

This take is about the management of the supply chain that can improve global operations and builds the resources related to advanced decisions.

Anaoff’s matrix:

According to this matrix, Zara can enter the international market with the development of a market development strategy. This strategy will motivate them to enter new markets with the existing products.

To get better practices and boost the advanced resources, the firm’s growth practices become increased. To improve the supply chain management operations and resources, the management of the business can accomplish the best techniques as it requires in the future. The core strategies of the business directly transform the operations and boost particular activities in the future.

Process of Zara company can improve its supply chain globally:

Zara company can improve its supply chain by developing strong relationships with suppliers and determining broad tactics. To invest money in the quality improvement system and develop low-cost suppliers, the Zara company can manage the flow of operations as entitled the broad activities through the given operations. In this modern world, the firm’s determination can be sustained in the future as it reaches broad satisfaction. Suppliers of the company are the integral part that increases the performance of the business and transforms the broad operations. Zara is an international brand that transforms broad plans and determines the clear resources for the future.

Horizontal and vertical integration:

To improve the supply chain management operations in the global market, Zara company uses different strategies for the global environment. It involves the process of acquisitions of other companies in the industry of retail clothing to enhance the market share as well as reduce costs.  It is a fast fashion distribution system that is based on both vertical and horizontal integration because it begins with textile operations and its outlet in 1975 has various outlets in the UK. As the largest company, Zara operates all the designs, productions, warehousing, and distribution processes that improve the broad practices in the future. Zara is the biggest Spanish clothing retailer in the whole world that vertically expand its resources in the future.

Outsourcing and strategic alliances:

Zara company uses logistic alliances as the core strategic alliances. When a firm uses the core products to target people then it depends on the number of resources and generates broad activities. The computerized system of Zara sorts the pack, generates the labels, and allocates the clothing items to everyone in Zara’s 100-plus stores. Zara outsources its material from the different operations that help to boost the resources of the supply chain. Export the products of Zara from Spain into the new markets, the business will reach the specific operational flow and the advanced decisions. To enter the global market and expand its operations, Zara invests a lot of money because it motivates the firm’s proper plans.

Ways to increase the profitability using the framework:

According to the BCG matrix, Zara company exists in the cash flow term because it generates higher profit after targeting the right customers. Customers of the organization are the most essential part that improves the business values and generates higher profitability. It is the model that consists of different strategies to get the market position of the company.

• By generating a higher efficiency of the business and setting the effective eras of the firm, the entire profitability of the business becomes increases.
• To reduce the overall cost that spends on the business values and its production help to generate higher profitability.
• By investing money in the retention of employees, Zara can explore the market opportunities and overall business behavior.

Conclusion:

These activities and the advanced resources improve the business values and the number of greater terms. The analysis of the global market entity strategies will help to improve the operational plan and build a strong awareness of the business. Various activities are used that improve the greater decisions and transform the best practices in the future. Global environment strategies of the business directly deal with better values as it transforms the operational plans. To get a strong internationalization strategy and boost the better or fundamental plans, the business values can be strongly held.