I. BackgroundZara is a popular Spanish clothing retailer based in Arteixo Galicia providing product lines for women, men and children. It is a high fashion retail that has rapidly evolving product lines. Zara is now represented in over 30 markets worldwide and operates over 500 stores. Zara operates under Inditex, founded by Amancio Ortega in 1975. Inditex has been a global specialty retailer and has 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. Zara is currently the largest and most international retailer of the Inditex chains. Zara's mission has always been to provide customers with fast and affordable fashionable clothing. As the fashion industry changes rapidly throughout the seasons, Zara wanted to offer customers an eye-catching design. Since Zara started in the Spanish market, it has moved abroad to several European countries. One of Inditex's goals is to expand internationally and be the majority shareholder. Despite the difficulty of accessing different markets, Inditex has created joint ventures and franchising. Inditex intended to use franchising for small and risky markets that have cultural differences. On the other hand, the joint venture was mainly used to obtain prime retail space in the city where the malls are located. Currently, a third of the stores are franchised. The three main competitors in the sector are The Gap, Hennes & Mauritz and Benetton. All three competitors have a vertical reach compared to Zara. Most of Zara's target demographics include men and women from newborns to 45 years old. However… halfway through the document… you assume the risk of failing affiliates. Additionally, the store owner will have a better understanding of the market than anyone else. This approach will allow Zara to grow rapidly at a faster pace. The downside is that if franchisees start closing stores around the world, this could cause a negative image of Zara.IV. Recommendation Overall, 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. Furthermore, Zara should create pages on social networking sites such as Facebook or Twitter. Meanwhile, Zara should partner with one of the well-known retailers so that Zara can start promoting their product lines in the United States. Finally, Zara should promote potential opportunities to open a Zara store to interested affiliates in Asia and Europe.