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International Entry Cycle

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Zara- Select an organization with which you are familiar (other than a firm that was "born global"). In what stage of the international entry cycle is the organization? Contrast the challenges of growing in the international market versus being born global. Next, describe at least four benefits your organization has gained or could gain from further international expansion and/or global trade. Be specific in your responses and support them with research.

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International Entry Cycle stage for Zara

Under the international entry cycle, Zara builds international confidence and enter the international market through the joint venture, franchising and with their own subsidiaries. For example- Zara entered into a joint venture with Otto Versand in 1999, the company was established in German. On the other hand, in 2010, Zara was operating more than 1900 stores within 74 countries (Mo, 2015). The international entry cycle with the help of franchising is chosen for the high-risk countries that were culturally distant such as- Kuwait, Malaysia, Arabia, and Andorra.
Contrast the Challenges for International Market v/s Born Global
Zara was going to expand ...

Solution Summary

Organisations have different international expansion strategies. This response analyse about Zara organisation and its stage of international entry cycle. Also, four benefits that Zara could gain from further international expansion are discussed.

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