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What market entry strategy would you recommend for ZARA(Inditex) to enter in the US market. Give...

What market entry strategy would you recommend for ZARA(Inditex) to enter in the US market. Give 3 pros and 3 cons of that strategy.

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Answer #1

A brand which is known for fastest growing fashion retail chain in Europe. They achieved this using simple business model.

If we talk about market entry strategy for US market, we can go with the following steps:

  1. Franchising:
  2. Joint Venture

Pros of Franchising:

  1. Easily enters the fresh market
  2. Get someone who can manage work
  3. Revenue generation at low risk

Cons of Franchising:

  1. Less control
  2. Mistakes of franchise can cost on brand reputation
  3. Contracts are not permanent

Pros of Joint Venture:

  1. Easy to enter in a new market
  2. Can accomplish bigger goal which cannot be achieved alone
  3. Compliment each other

Cons of Joint Venture:

  1. Difference in work culture
  2. Improper communication
  3. Conflicts
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