Market expansion strategies entail the various marketing methods that businesses use to introduce and sell their products in the international markets. Therefore, retailers who need to expand in the global markets need to use effective and sustainable expansion strategies both in the short and medium term. While there are many expansion methods, retailers need to evaluate the best strategies to implement and select a play that is feasible for future business internalization. Market expansion opportunities for year-on-year growth are difficult. Retailers cannot just snap their fingers and instantly increase sales. Instead, retailers have to critically evaluate the market position of their business and the possibility of using business expansion methods that give them opportunities to sell more products to many customers. Hence, market expansion strategies need to help a business determine the best way to sell products to more customers (Kotler and Keller, Pg. 35).
For purposes of illustrating this paper, this analysis will use Zara Retailer as a case study. The firm will form the basis in evaluating various market expansion strategies and their success in effectively taking the organization’s products into international markets. Zara is a Spanish fashion and luxury clothing and accessory company that is based in Arteixo Galicia, Spain. The firm was started in 1975 by Rosalio Mera and Amancio Ortega. The company has since grown to be a significant player in the world apparel industry that retails its various clothing brands in the global markets. As of 2017, the firm managed over twenty clothing collections. The expansion strategy of the company started in 1988 when the company expanded its product to the neighboring country Portugal in the city of Porto. The firm then extended to the US, countries in Europe, Asia, Africa, and South America among others. The firm has since been successful in most of these markets and has emerged a leading brand in the global apparel industry. Some of the expansion strategies currently used by the firm include flagship stores in those markets, franchising, and use of internet marketing and electronic commerce.
Evaluation of international market expansion methods used by the company
As noted above, Zara retailers use various global expansion strategies that include the following: opening of flagship in the international markets, use of franchising model and use of internet marketing. These marketin
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