Question's about the Otto group Assignment Example | Topics and Well Written Essays - 500 words

Question's about the Otto group - Assignment Example Because international expansion involves much strategic planning, the Otto Group has had to design a multichannel strategy that can be successful in any environment. The key to success on a global scale is to be flexible and go along with local market conditions. The Otto Group has planned this level of international expansion well by refocusing its strategic capabilities toward these areas. Although the company has been successful before with direct marketing channels, the Otto Group will need to change its focus to internet services because this is the way that modern shopping trends are going. The key is to make sure that customers buy into this e-commerce strategy and respond well to it. The firm appears to prefer takeovers and acquisitions going by its recent history in Europe. The reason for this is because these entry modes are less risky and the company can safeguard some of its investment. The markets of Central and Eastern Europe, although relatively untouched, can be risky for outsiders to enter because there is not a great deal of economic stability. It makes sense that the Otto Group would want to use an already existing brand because this saves on start-up costs. Conversely, in the United States the company seems to have learned its lesson. After a failed acquisition in 2009, the Otto Group returned the following year with a Greenfield investment. This makes sense because the American economy is relatively stable and the company can maintain greater control over business operations. The Otto Group is entering the US market again because it realizes the mistakes that it made before. Acquiring a US company does not allow the Otto Group to use its own innovations to reach the American consumer. Now that the company has "got its feet wet," the Otto Group knows what it needs to do to succeed and it is now willing to use its own resources and capabilities. With its prior attempt, the Otto