Introduction To International Marketing - 2017 Theory - Company Examples

ZARA
• Zara was founded by Amancio Ortego, a

former dressgown maker in 1974 in Spain
• Zara’s internationalization practice started
with geographically close markets and the
opening of a store in Oporto (Portugal) in
1988 and France 1990
• Through this establishment Zara acquired
international market experience and
knowledge.
• Zara then expanded further overseas into
international markets that were
geographically more distant but culturally
close such as Mexico in 1992
• It then gradually moved to more distant
countries regardless of cultural and
geographical proximity such as Japan in
1998
• By the end of 2016 Zara was operating in
82 countries with 2,100 stores worldwide
Logitech
• Focusing on the PC mouse, the company was
founded in 1981 by two Italians and a Swiss.
• Operations and R&D were initially split between
California and Switzerland, then expanded rapidly
with production in Ireland and Taiwan.
• By 1989, it’s stylish, innovative and ergonomic
products captured 30 % of the global computer
mouse business, with $140 million in revenues.
• Today, Logitech is an industry leader in the design
and manufacture of computer peripherals
• Has manufacturing facilities in Asia and offices in
North America, Europe, and the Asia-Pacific
region; and over 6,000 people worldwide.
Airbus
• In the 1960s US companies, particularly Boeing and McDonnell-
Douglas, had become the dominant players in the increasingly capital-
intensive airplane industry.
• The smaller European manufacturers competed with one another but
were ineffective against the US rivals
• By the end of the 1960s, the Europeans share of the global aircraft
market was just 10%.
• Then, in 1970, four of the leading European manufacturers – from
France, Germany, Spain and the UK – did something radical and
collaborated rather than compete. They formed the joint venture
Airbus, pooling their resources to design, produce and sell jet aircraft
• Although Airbus’s first customers were European airlines, the venture
began penetrating the American market by 1980 through leveraging
their respective contacts.
• In addition, several pan-European defence collaborations with local
governments allowed it to grow in the 1970s and the cooperation with
governments to develop the Arian defence launcher
• European aircraft manufacturing survived and Airbus had become the
only rival to Boeing.
•
Kerrygold
• 1961 May 17, 1961, An Bord Bainne (The Irish Milk Board) is
established by the Government to “promote, facilitate, encourage,
assist, co-ordinate and develop the exportation of milk and milk
products”.
• Kerrygold is one of their first brands and quickly establishes a strong
foothold in the UK market
• Late 1960s it starts exporting to many more markets overseas, such a
Gibraltar, Malta, Cyprus, Middle East, Gulf States, Canary Islands, the
Caribbean and Asia.
• The Irish Dairy Board becomes Ornua and continues to promote
Kerrygold overseas
• Irish diaspora also help grow the brand around the world seeing the
gold foil is an immediate link to home.
• In 2012, the Irish Dairy Board participates in a trade mission to China.
The Minister for Agriculture, Food and the Marine Simon Coveney,
welcomed the further development of the Kerrygold brand in China - th
key strategic market for Irish dairy exports.
• The brand is now the number 1 butter in Germany and the number 1
Apple
• After first opening retail locations in the US,
foreign buyers started buying in bulk in order to
take them back and sell them to those yearning for
Apple overseas.
• At first, Apple didn't target these international
customers in a strategic way.
• Instead foreign retailers demanded the products
and drove expansion
• Little by little, Apple gradually expanded their
global footprint – with no master plan
• By 2012, 83% of new Apple stores were found in
international locations.
Danone
• Isaac Carasso lived in Barcelona in the 1910s. He observes that
many Spanish children suffer from intestinal infection. Aware of
research into lactic ferments he decides to introduce a product
known in the Balkans for its health benefits: yogurt.
• He launches the Danone brand in 1919 named after his son Daniel,
whose nickname was “Danon”.
• In 1929 Danone opens its first retail store outside Spain in France.
Danone pioneers its message of bringing together enjoyment and
health.
• During the 1970s, Danone acquires many European companies and
in less than 20 years, it becomes Europe’s third largest food
company, leading the market in France, Germany, Belgium, Spain,
Italy, Luxembourg, and Portugal.
• By the mid 1990s, Western Europe accounts for almost 80% of
Danone’s sales.
• With the fall of the Berlin Wall and Communism, Danone further
expands into Eastern Europe, with Asia and Latin America the next
logical targets. Its first major Asian acquisition comes in 1991 with
the purchase of Hong Kong-based Amoy
• The company continues to expand further afield and by 2013, 60% of
its sales come from emerging markets. The company’s new global
equilibrium is the result of geographical diversification. Danone has

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ZARA

• Zara was founded by Amancio Ortego, a

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