Global Business Essay Example | Topics and Well Written Essays - 1000 words

Global Business - Essay Example The company has chosen this market as its first international pilot project because it was geographically and culturally/psychologically close market (Ying Fan, 2009). However, the company realised that it was necessary â€Å"to adjust its business model to suit the new markets† (Ying Fan, 2009:285). Thus, the company has learned the Iron Rule of international business, whereas â€Å"in international business, the seller adapts to the buyer† (Gesteland, 2005: 17). The company continued its business expansion across France, Northern Europe, Mexico, and Greece. Thus, Zara has utilised the benefits of cultural convergence – â€Å"the growing similarity between national cultures, including the beliefs, values, aspirations, and the preferences of consumers, partly driven by global brands, media, and common global icons† (Rugman and Collinson, 2011: 137). Also, Zara has opened a store in New York. Even though it was neither geographically nor culturally close market, it was strategic decision enabling the company to build brand awareness and get close to international fashion brands (Ying Fan, 2009: 286). Thus, Zara has gained knowledge, experience and expertise necessary for successful business development in more distant markets. During the period from 1997 to 2005 Zara has adopted aggressive business expansion and entered other markets despite the fact of geographical or cultural proximity (Ying Fan, 2009). As of January 2006, the company was present in 59 countries across Europe, America, Middle East, Asia and Africa. In order to meet the needs of the consumers from different countries, the company has adopted localization strategy (Rugman and Collinson, 2011). It has adopted its products by modifying cloth size, style, and other elements to local tastes and cultures. In order to enter foreign markets, Zara has adopted three entry modes: own subsidiaries, joint ventures, and franchising. Zara entered most European and South American