I. BackgroundZara is a famous Spanish clothing retailer based in Arteixo Galicia that offers product ranges for women, men and children. It is a high-fashion retail business with rapidly evolving product lines. Zara is now represented in more than 30 markets worldwide and operates more than 500 stores. Zara operates under Inditex, founded by Amancio Ortega in 1975. Inditex is a global specialty retailer and owns six clothing retail chains, including Zara. The six different chains include Zara, Massimo, Dutti, Pull & Bear, Bershka, Stradivarius and Oysho. In 2001, Inditex generated a net profit of 340 million euros. Currently, Zara is the largest and most international retailer in the Inditex chains. Zara's mission has always been to provide customers with fast and affordable fashion clothing. Since the fashion industry changes rapidly with the seasons, Zara wanted to provide its customers with an attractive design. Since its debut in the Spanish market, Zara has moved abroad to different countries in Europe. One of Inditex's objectives is to develop internationally and to be the majority shareholder. Despite the difficulty in accessing different markets, Inditex has created joint ventures and franchises. Inditex intended to use franchises for small and risky markets that have cultural differences. On the other hand, the joint venture was mainly used to obtain prime commercial space in the city where the malls are located. Currently, a third of stores are franchised. The three main competitors in the sector are The Gap, Hennes & Mauritz and Benetton. All three competitors have vertical reach compared to Zara. Most of Zara's target demographics include men and women, from infancy to age 45. However......in the middle of the document......response of the risk of failure to franchisees. Additionally, the store owner will have a better understanding of the market than anyone else. This approach will allow Zara to grow quickly and at a faster pace. On the other hand, if franchisees start closing their stores around the world, it could give Zara a negative image. IV. RecommendationOverall, Zara should start investing its capital in information technology now. The technology team will be able to create a website for Zara and provide technical support to customers. Zara should also create pages on social networking sites like Facebook or Twitter. In the meantime, Zara should partner with one or the other well-known retailers so that Zara can start promoting its product lines in the United States. Finally, Zara should promote possible opportunities for opening a Zara store to interested franchisees in Asia and Europe...