Zara Case Study
Characteristics or behavior of consumers, for example the people in France are more fashionable and quality oriented while the people in Germany are more price sensitive, and income per capita are also important considerations. By carefully considering these elements and following a systematic procedure to insure extensive market testing before expanding its operations, Zara so far hasn't retreated from any selected markets.
Market entry: the related considerations include economics factors, government regulations, and entry barriers. More specifically, the economic factors include macroeconomic factors such as tax, political condition, and export tariff, and the microeconomic factors which include local competitors, demand, and location of stores. Zara adopted three modes of market entry- joint venture, franchise, and company-owned stores that depended on local factors. However, Zara would always make sure it has the most control to its stores no matter what forms they