Topics: European Union, Shopping mall, Business Pages: 1 (275 words) Published: February 20, 2013
How has it expanded internationally?

From the beginning of its expansion Zara has always focused more on the European market than other markets for its profit save, and because of its closeness to consumer tastes. This can be seen in the figures below. In the course of time this situation has not changed but in recent years Zara is trying to concentrate on the Asian market and especially on the American market. In fact in 2010 many of the 400 stores that Zara will open during the year, will be established in New York, California and Florida.

Zara had originally expanded internationally through company-owned stores. It typically establishes company-managed stores in key, high-profile countries with high growth prospects and low business risk. It adopted this strategy for most European and South American countries.

Zara tends to use franchisee in countries that were small, risky, or subject to significant cultural differences or administrative barriers that encouraged this mode of market participation: examples included Andorra, Iceland, and Poland

Zara uses joint ventures in larger, more important markets where there are barriers to direct entry, most often ones related to the difficulty of obtaining prime retail space in city centers. At the end of 2001, 20 Zara stores in Germany and in Japan were managed through joint ventures Interests in both ventures were split 50:50 between Zara and its partners: Otto Versand, the largest German catalog retailer and a major mall owner, and Bigi, a Japanese textile distributo

The figure below shows how Zara on time has improved its revenues, due to its international expansion and mostly to its successful achieved in different countries
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