Zara-Lotte Joint Venture Negotiation Term Paper by mmm

Zara-Lotte Joint Venture Negotiation
Analyzes the joint venture negotiation between the Korean-based company, Lotte Shopping Co., Ltd (Lotte), and the Spanish-owned Inditex (Industrias de Diseno Textil) brand Zara (Zara).
# 147588 | 6,200 words | 12 sources | APA | 2011 | PH
Published on May 15, 2011 in Business (Companies) , Business (Industries) , Business (International) , Business (Management)

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This paper relates that the Korean-based fashion retail company, Lotte Shopping Co., Ltd (Lotte) wanted a joint venture with the Spanish-owned Inditex (Industrias de Diseno Textil) that does business as the globally popular brand store Zara (Zara); however, Zara usually preferred a market entry strategy as a wholly-owned subsidiary or franchise. With detail, the author relates the background of each company and the problems of entering the Korean fashion market. The paper looks at the steps in the negotiation and presents a micro and macro analysis of the reasons why these companies were able to enter into a successful joint venture. The paper includes footnotes with MLA-style references, and a table.

Table of Contents:
On Zara
Global Expansion Activities
Zara Today
Negotiation Experience
On Lotte
Lotte's Standing
Lotte Today
Negotiation Experience
Bundling Strategy
Power Play
Table: Condensed Time-line of the Lotte-Zara Negotiation Process

From the Paper:

"The Korean market is composed of 49 million people. It is the 26th largest state in the word. Despite its small size the Korean market is often viewed as an attractive market for some IT companies and cosmetic companies because the Korean customers are very sensitive, demanding and expressive of their needs. That is why many companies assume the Korean market as a test bed. Therefore Korean people are fond of their market, but for Zara, Korea was not that attractive compared to the Japanese or Chinese market. While Lotte thought Korean market to be appealing for Zara, Zara in the first place was indifferent to the Korean market. "

Sample of Sources Used:

  • Carmen Lopez and Ying Fan (2006), "Internationalisation of Spanish Fashion Brand Zara", Brunel Business School.
  • Nebahat Tokatli(2007) , " Global sourcing: insights from the global clothing industry--the case of Zara, a fast fashion retailer", Journal of Economic Geography.
  • The Economist (2005), "The future of fast fashion", available from
  • Castellano, J.M. (1993), "Una ventaja competitiva: El factor tiempo. El caso Inditex-Zara", Papeles de Economia Espanola, No 56, pp. 402-404.
  • Castellano, J.M. (2002), "El proceso de internacionalizacion de Indetex", Informacion Comercial Espanola, No 799, pp. 209-217.

Cite this Term Paper:

APA Format

Zara-Lotte Joint Venture Negotiation (2011, May 15) Retrieved June 06, 2020, from

MLA Format

"Zara-Lotte Joint Venture Negotiation" 15 May 2011. Web. 06 June. 2020. <>