Zara's Plan to Expand Internationally

Published: 2021-06-29 07:12:22
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Category: Technology

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Zara's plan to expand internationally on one hand and its
standardized production line and strategy limited to current
geographical base in Europe on the other hand could be a
possible threat of failure to Zara. There are visible differences in
cultural, social, political conditions across different countries
and the difference in tastes, liking, and fashion across regions
can also pose a threat of failure to Zara. This vulnerability that
faces Zara when it enters international markets can cause Zara
to succumb in face of stiff competitors and its alleged
"diseconomies of scale". To enter international markets, Zara
needs to deliver its apparels in-time, at competitive prices,
customized for local market, and short-lead time.
Another threat of failure that lingers Zara is their inability to
develop a strong supply chain in the Americas. The U.S apparel
market covers 29% of the world's market. Their current strategy
in Europe has given them success and ability to grow. Outside

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