International Marketing Channels
Getting products to consumers can be challenging and costly at the same time. This is even harder with international markets. Firms need to develop appropriate strategies that can enable them to successfully navigate any form of obstacles presented by distribution channels (Cateora, 2007). The fashion fast strategy has worked effectively for Zara, one of Inditex subsidiary firms. More efforts are being implemented to ensure consumers get their products on time. For instance, the company is adopting new approaches to ensure managers order and display merchandise faster.
A retailer introduces its online store country-by-country so that the market being targeted is receptive to the online shopping experience. This also ensures that the website is convenient for the user. For firms to successfully integrate online sales for their products, it is wise for them to start with the most profitable areas then expand globally (Cateora, 2007). Even though Inditex is tech-savvy, it was slow to adopt online sales because their main focus was supply chain management. Secondly, there was no need to have an online store at the moment because of the turnaround time for getting inventory out to brick-and-mortar stores.
Zara has gained most of its success through its reliable distribution channels that enable the company to deliver products on time. Inventory optimization models have been put in place to keep the company alert on the level of shipments to be made. The lean supply chain strategy has worked effectively in ensuring there is no dead stock in Zara warehouses. Its cross-functional operations strategy, coupled with its vertical integration, has a supply chain that enables mass production under push control, resulting in well-managed inventories. Through this strategy, the firm has generated higher profits and created value for its investors.
References
Cateora, P. R. (2007). International Marketing 17ed (Sie). Tata McGraw-Hill Education.