Scribd
Upload
160 views1 page

Case Otto Paragamac

The Otto Group is an internationally operating trade and service group headquartered in Hamburg with 120 companies established in over 30 countries. It concentrates its efforts on new innovative and promising industries, particularly in Europe. The Otto Group wants to connect with other companies outside of Germany in order to expand into new markets like outdoor clothing. To plan for this level of international expansion, strategic planning is critical to build on Otto Group's strengths in direct marketing channels, internet, and travel services. The Otto Group prefers country-entry modes of takeovers and acquisitions of companies to control local markets. However, entry modes are not always through acquisitions and can vary by country. After a failed first attempt to

Uploaded by

Jan Kyle Paragamac
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
160 views1 page

Case Otto Paragamac

The Otto Group is an internationally operating trade and service group headquartered in Hamburg with 120 companies established in over 30 countries. It concentrates its efforts on new innovative and promising industries, particularly in Europe. The Otto Group wants to connect with other companies outside of Germany in order to expand into new markets like outdoor clothing. To plan for this level of international expansion, strategic planning is critical to build on Otto Group's strengths in direct marketing channels, internet, and travel services. The Otto Group prefers country-entry modes of takeovers and acquisitions of companies to control local markets. However, entry modes are not always through acquisitions and can vary by country. After a failed first attempt to

Uploaded by

Jan Kyle Paragamac
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

1. How do non-German markets figure into the Otto Group’s strategy?

Otto with headquarters in Hamburg, is an internationally operating trade and service group, with 120
companies established in over 30 countries. (Topic: Otto Group, 2021) Financial services are one of the
Otto Group's business lines. services, as well as multichannel retail and other services It is concentrating its
efforts on new innovative and promising industries, particularly in Europe. In their business philosophy, it is
stated that they have a passion for integrated networking. This means that Otto Group wants to connect
with other companies, not just German companies, in order to have more arms in the market that they
desire, such as outdoor clothing, outerwear, footwear, and accessories.
2. What do you think the firm has had to do to plan for this level of international
expansion?
Otto group holds that it is not a bad thing to focus on what you are good at, and Otto group is good at
staying in the backstory while putting its brands in the limelight. Focusing on its direct marketing channels,
internet, and travel services, which are their strengths to build on, it is critical to do strategic planning for
international expansion.
3. Which country-entry modes does the firm appear to prefer? Does it vary these
modes?
In this case, The country entry modes that the firm appears to prefer are takeovers and acquisitions
of the companies. This makes the Otto group control the local market and make their new takeovers and
acquisitions companies be strong. The majority of its entry modes are similar, consisting of takeovers and
the acquisition of shares in distance selling industries. But not all are takeovers and acquisitions it varies
where country they will venture out.
4. After the Otto Group failed in its first effort to enter the US market with Spiegel,
why would it try again?
It is worth a try because the newly acquired company after the failed attempt they are shaped to the
mistakes and learned the lesson of the past still making innovation this could help regain the market and it
may be able to succeed this time.
5. How does this latest effort to enter the US market differ from its prior attempt?
In terms of mode of entry, the most recent attempt to enter the US market differs from the previous
one. First, they followed their usual acquisition strategy and entered the market by acquiring Spiegel, the
parent company of Eddie Bauer. It differs in that it now enters through its own sales corporation, whereas
previously it entered through acquiring. The new strategy entails creating their own brand and utilizing
their own resources.

Reference:
Statista. 2021. Topic: Otto Group.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy