Explain what features of Zara travel well and which ones do not.
This paper is about the strategy adaptation to entry in Brazil market.
It includes the study of the current international strategy of Uterque, the same successful business model as logistic and design leader that Inditex group. In addition, the analyses of the Brazilian market justifies the selection of implementing country.
Table of Contents 1. Introduction …… 3 2.
Theoretical approach …… 5 3. Business Model and International Strategy …… 8 3.
Market and Strategy Analysis …… 14 4. Industry conditions Where …… 14 4. Introduction Uterque is the latest launched Inditex Group retailer, sells accessories, fashion extras and bags that began its business in Spanish market in ; then Uterque became in an international firm to entering to 15 high levels markets in European.
Purpose To examine the challenges Uterque is facing entering the distant Brazilian market using a modified version of its highly successful business model, originally developed and specialized for nearby European markets.
Aims The main aims of this research can be divided in two aspects: To study the current international strategy of Uterque to understand if is possible to use the same strategy in Brazil: To justify the selection of implementing country and to adapt or modify the current strategy to Brazilian conditions: With the aim to decide if it is feasible entering in Brazil with the same strategy used nowadays, we are going to develop first of all a theoretical approach about the concepts we need to know and to relate with this specific case, and after that we will see a brief market research with its following way to enter by many analysis such as PEST, PORTER 5 FORCES and SWOT.
Main strategic problem company In the following paper it will be seen if the current managed to solve problems in Europe using its competitive advantage and if this current strategy is able to entering in the chosen new market area.
In addition, it is going to be explained the derivate problems that could appear using the same model in the Brazilian market such as distance logistic and distribution problems and the powerful competitors. Distance logistic and distribution problems Currently, Uterque and the whole firm with its differential advantage it is one of the most powerful clothing retailers in the world, with a good reputation and well-known brand image it is present all around the world.
However, the most concentration of the stores are in the same area Europe because its logistics model suppose that to achieve getting new accessories in less time than its competitors, Inditex has located the majority of its factories close the distribution plant.
So, with this logistics model could be more expensive being expanded so far away.
Competitors In our case, we have different competitors than other Inditex Group ones because it is the most specialized brand of the holding. The closers Uterque competitors are all those multi-brand accessories and bags stores that are present in the Brazilian market.
It will be studied which is the best choice of entry mode in the Brazilian market. This point is associated with competitors because Uterque has a differentiation with its competitors because it belongs to a well-known and powerful international firm and it is giving the choice to find a big assortment of quality accessories and bags in the same place and of the same brand: As we mentioned in the introduction, Uterque is the newest brand of the big holding Inditex, and at the same time, it is the less expanded brand of it.
For this reason, we want to determinate if it is possible that this company will be successful like its partners in an interesting new market how the Brazilian one is.
So, in order to expand Uterque brand into new markets exploiting its competitive advantage, the differentiation, we are also going to consider its value chain and the government view with the aim to know which is the optimal model to entry in and if it is feasible.
Value-chain was popularized by Michael Porter and the analysis looks at every step a business goes through, from raw materials to the eventual end-user.
The goal is to deliver maximum value for the least possible total cost. After that, take place the designers task that are responsible to design the accessories for the new collections.
The designers have to be always in contact with the inventory who says the quantity that has to be produced and the availability of the material. When the design and the inventory have done their job, the producers make Uterque accessories and there are distributed to the different stores.
Furthermore, all the elements of the value chain are coordinate by a managing information system with an order information flow, an improving inventory system and also a product distribution system.6 Retail Subsidiaries The Inditex corporate strategy is to provide general back-office support to its retail concepts, and assist with international expansion and new concepts in existing markets.
Inditex Strategy Report Jessica Vincent Phillip Kantor Daniel Geller years, with an emphasis in Asia.1 Sales also benefited from a global rollout of online stores, starting with Zara Home in and each additional retail format in Zara is the most prominent.
Oct 14, · Zara’s business success with its flexible approach is demonstrated in its stock market success as well.
The authors analyzed the stock performance of Zara, the Gap, and Limited Brands. Abstract: This paper is about the strategy adaptation to entry in Brazil market. It includes the study of the current international strategy of Uterque, the same successful business model as logistic and design leader that Inditex group.
Uterqüe España - WorldWide. Choose Your Location. shop online available. Zara internationalization strategy allows the company to achieve a fast production and an international distribution of products, implemented by the creation of an international presence with wholly owned subsidiaries in the majority of foreign countries, joint venture agreements and franchising contracts in .