Zara’s global strategy Essay
Zara’s global strategy
This report analyzes the internationalization and the global business model of Zumba Fitness project. The first section provides the interpretation of Zumba’s internationalization explaining what internationalization model was chosen. The second part emphasizes the success of Zumba’s business model. Data and analytics are derived from primary and secondary research. The report finishes off with a short conclusion on the success of Zumba’s project.
The internationalization of Zumba
There are three major models of internationalization:
Uppsala internationalization model
Transaction cost analysis model
Initially Uppsala internationalization model fitted best the internationalization of Zumba. Zumba’s Uppsala internationalization model was based on:
experiential learning and incremental decision-making process
This confirmation can be proved by:
The original plan of Zumba fitness was based on producing VHS workout tapes and DVDs of Zumba classes to sell in in the US. The sales of videos showing the techniques of Zumba dancing increased and Zumba fitness became popular among people who were willing to be Zumba instructors. Realizing this business opportunity Zumba fitness decided to provide Zumba fitness classes who are interested in dancing and sport and to create in the future its network of instructors, the so called ZINs. The decision was made incrementally with no influence from competitive market factors but based on Zumba’s own experiential learning.
Psychic distance between home country and international markets (initially, before 2001 and at the very beginning of 2001) Initially Zumba was not accepted and DVDs were sold unsuccessfully in the US market because of specific Columbian, Latin American style of music. That’s why Zumba Fitness should have paid attention to additional market commitment. It was necessary to become popular gaining the market share in the countries of Latin America and after to think of entry strategies to international markets (e.g. the US).
Shift to Global Network model
Nevertheless, there are some features of network model that fit the Zumba fitness internationalization. Creating networks of instructors ZINs determines the relationship between Zumba Fitness and instructors groups where Zumba Fitness is dependent on recourses and procedures of those groups. Zumba’s advertising through the Internet (YouTube and Facebook) is the example of going global with attractive perspectives. Thus, made a shift from Uppsala internationalization to global network.
Zumba’s global business model
The success of Zumba’s business model can be explained by:
The attractive concept of Zumba fitness
Instead of annoying trainings in the fitness-club people can enjoy dancing burning many calories at the same time, it can be very attractive for women around the world, thus, making Zumba Fitness being present in numerous countries of the world.
Zumba Fitness is really customer-oriented providing additional Zumba classes as Zumbatomic for kids, Zumba gold student, Aqua Zumba for swimming admires, Zumba toning and others. Thus, Zumba Fitness tends to attract new target audience, even those who prefer swimming. Zumba fitness created special brightcolors clothing range for Zumba dancing using the right marketing plan. Members of Zumba fitness visited Zumba events to see what people were wearing to customize their clothes in order to lanch its own clothing line that keeps the analyzed clothing function but more stylish corresponding to Zumba style and consumers’ tastes at the same time.
Zumba Fitness benefited from Internet advertising and social media using YouTube videos and being present in Facebook pages. Thus they attracted even celebrities, thus permitting to Zumba Fitness to go global.
The right marketing plan of promoting Zumba Fitness creating Zumba events around the world encouraged people to buy special clothes for dancing contributing to the increase of Zumba’s profitability.
Network of instructors
Creating of Instructors networks around the world contributed to the increase of Zumba’s revenue and its popularity.
The internationalization is a long and demanding process. The incremental commitment and the implementation of a customer-oriented marketing strategy based on social interaction with target audience establishing strong emotional links with people led Zumba to an evolutionary development in foreign markets.
Zumba website The process model of internationalization Uppsala Model and the internationalization