Analysis of Ottely's Expansion to Germany Market

This report analyzes the potential growth and development of Ottely, a small manufacturing company, in the German market. It examines the political, economic, and social factors that may impact the company's expansion. The report concludes that entering the German market can be beneficial for Ottely.

WRITTEN PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................3
OVERVIEW....................................................................................................................................3
ASPECTS........................................................................................................................................4
Political factors...........................................................................................................................4
Economic factors.........................................................................................................................5
Social factors...............................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
APPENDIX......................................................................................................................................9
Company profile.........................................................................................................................9
Country profile............................................................................................................................9

INTRODUCTION
The current business world is very competitive and global and for this it is essential for
the companies to work in good and effective manner in the global market. For this the analysis of
the business environment is very essential as the business operates in the global business
environment. Also, the competition is very high and for managing it internationalisation is very
necessary. The present report will outline the fact that whether Ottely expansion to Germany
market will be helpful in growth and development or not. Ottely is small manufacturing
company which deals in manufacturing of leather product and is based in Gloucestershire
(Ottely, 2020). The company specialises in variety of handbags, leather wallets, belts, iPad cases
and many other related products. The report will outline that whether the market of Germany will
be helpful for the growth and development of company or not.
OVERVIEW
 Political- these are the factors which includes changes taking place in the political sector
of the country. The country is run by the government or a regulating body which is
selected by the local people of the country. Thus, there are many different challenges
which the company may face when they enter in a new country because of political
changes.
 Economic- this is referred to as the economic condition of the country in which the
country is running and operating all its operations. It is very essential for the country to
have a good economic condition of the country as this will illustrate that the working
environment of the country is good and profitable. Thus, this will motivate other
countries to enter in the country to do business.
 Social- this includes the attitude, values, beliefs of the people living in a particular area or
belonging to a particular segment of the society. For the companies to be successful the
most essential aspect for the companies is to take care of the need and requirement of the
consumers and try to satisfy it with the product and services of the company.
 Technological- this is the major factor to be considered in the modern time in the global
market. This is pertaining to the fact that technology assist the company in managing the
work in more efficient manner and reducing the human effort in work. In this modern and

globalise business environment there are many technological upgradation and
advancement which need to be taken care and adapted by the company.
 Legal- the legal factor is the one in which the laws and rules and regulations are written
and all the business has to follow all these rules and regulations (Gause, 2016). Also,
there are different laws which guides the whole working of the company in ethical and
morally correct manner. For the effective working of the company it is very essential that
they follow all the rules and laws being enforced within the country to ensure that the
company is working in effective manner.
 Environmental- the environmental factor includes the protection and safeguarding of the
environment and the related factors in such a manner that the environment nearby is
protected. In this modern world people have become more conscious relating to the
protection of environment so it is the duty of the business to ensure that all the product
and services of the company are environment friendly and not harm the environment and
surrounding.
ASPECTS
Political factors
The political changes affect the working of the country to a great extent because if the
government is not making policies in favour of the company then the company will not be
profitable. The political changes include the change in the government, changes in the policies of
the government, tax policy, tariffs and many other related factors. All these aspects need to be
studied by Ottely before entering in the other country. In the present case the company Ottely is
planning to expand the business in the Germany and before entering the most essential thing is to
first analyse the political environment before entering in the new country.
Ottely for entering into Germany country and expanding into international market
position has stable functional position where it can also be seen that there is strong fundamental
metrics through which brand will be able to keenly position itself within the international market
share. Political factor is one of the most important factor which gives wide functional
advancement for business expansion and programming of all functional roles to develop large
stability and yield onto larger keen focus through which more profitability can be undertaken for
innovative marketing. Ottely with stable position and political parameters of Germany will be

able to yield onto wider share consumers intentionally through which keen synergy of
advancement can be undertaken. Political stability gives wide working opportunities for business
and wide working scope through which effective services and products can be supplied within
international market paradigms (Achinas, Horjus and Euverink,2019).
Also, the tax rate in Germany is low as compared to other countries thus, this will be
more beneficial for Ottely as they will have to pay less of the tax to the government of the
country and this will save the money of the company. This will help the company in reducing the
amount of tax and this will increase the profit for the company and thus, this money can be used
in some other area and for the development of the business in Germany. In addition to this there
is not much import and export restriction over the business and they can easily trade with other
countries as well. Thus, this will be beneficial for the company as they can easily trade with
other countries and this will increase the market area for the company.
Economic factors
The economy of the country refers to as the situation in which the company is operating
and it is very essential for the company to analyse the economic condition of the country before
entering in any other country. This is majorly due to the fact that if the economic condition of the
company is not much good then the company will not be able to earn good amount of the profit
and will not be able to capture a large market share (Kochkina, 2019). Thus, this is also an
important factor to be analysed by Ottely before entering into Germany.
The economy of Germany is also widely strong and the consumers also have wide stable
paradigms through which Ottley company will be able to gain stronger position into international
levels with wide scope of working efficiency to pertain onto innovation synergy. The brand
specialization to produce wider fashionable working outputs where the customer’s preferences
are highly focused to bring on wider profitable working scenario within business scenario.
Economic factors are highly focused to bring on wider scope of functionality where technical
advancement is also one of the key factor for gaining wide presence onto international market
paradigms. Economic stability brings on new synergy of effective programming for strengthened
business parameters of higher profitability and larger working goals to attain stronger scope of
recognized goodwill among consumers (Perera, 2017).
In addition to this another rmajor positive factor relating to the economic condition of the
country is that the purchasing power of the consumer is increasing and because of this they are

switching to use of branded products. Thus, this will have a positive impact over the sales of
Ottely. Also, the interest rates that is the interest which the company has to pay at time of
borrowing from other is low in Germany (Sarwar, Ramachandran and Hosseinian-Far, 2017).
Hence, this will be beneficial for the company as in Germany the company can get much cheaper
loans. Thus, in this situation the company Ottely will have to pay less of the interest and that
saved amount can be used in some other or different activities and make the operations of the
company more profitable. In addition to this the labour is very cheaply available in Germany and
because of this manufacturing of the bags will be done with low cost. As the cost of the product
and services of Ottely will be low then the company can earn more of the profits and this will
increase the market share and number of consumer for the company.
Social factors
The social factors include the attitude, thinking, perception, beliefs of the people in
society relating to the product and services being provided by the company (Policy, 2018). It is
very essential for the company to first analyse the attitude and perception of the people of a
country for the goods and services being produced by them and then enter into that new country.
This is essential as if the consumer will not like the goods and services then the company face
many loss and they will lose the market share. Thus, before entering into Germany it is essential
for Ottely to analyse the perception and attitude of consumer relating to the bags and other
products produced by the company.
The social cultural factors of Germany are also highly active and highly effective to bring
on new fashionable working parameters for technical advancement through which new synergy
of functional efficiency can be attained. Ottely with best fashionable products and advanced
online services will be able to develop new wider rational market where people have new
preferences with large economic stability will be able to gain wider scope of effective
functionality and synergy of innovation to bring on new products. Social culture as one of the
most important factor which keenly will develop wider scope to program out larger new rational
goals for gaining strong fundamental new profitability and higher scale spread onto Germany
country (Zahari, and Romli, 2019). Social factors being highly strong has to actively work on as
one of the most important paradigm through which wider scope of synergy into innovation can
be analysed for gaining on new synergy of innovation. Socially there is wide demand among

people who are actively looking upon fashionable handbags and wallets which are gaining wider
preferences.
Also, in addition to this the product and services of the company Ottely is of good quality
raw materials and also the material of bags are user and environment friendly. Thus, this feature
of the goods and services of Ottely attracts more of the consumers and they like the fact that the
product of the company does not harm the environment and the working of the society. Along
with this the attitude of the consumer is getting attracted towards the upgradation of their
lifestyle and for this their interest is developing towards the use of good quality and branded
products as their lifestyle if being upgraded. Thus, this is beneficial for the company Ottely as
the consumer of Germany are getting attracted towards the use of high quality branded bags,
wallets, belts and other related fashionable products (Koshesh and Jafari, 2019).
These factors explain wide rational functional parameters where the pestle factors are
highly developed and functional to work onto new synergy of innovation with wide rational
goals through which innovation is able to be developed with higher rational goals. Ottely will be
able to develop various new profitability metrics through which large yield of gaining strong
presence can be developed within Germany market.
CONCLUSION
In the end it is said that for the expansion of the business the most essential thing is the
analysis of the environment in which the company want to operate. This was essential as if the
environment of the other country is not good and the company plan to go in that country then this
will not be profitable for the company. Thus, the current report stated that fact that for Ottely the
expansion to Germany is beneficial. This was supported by PESTLE analysis and the Porter five
forces analysis as well. Both the model showed the positive aspect and some of the negative
thing were there like competition but it can be controlled with effective marketing strategy and
using all the latest technology. Thus, in the end it was concluded that Ottely must go for
internationalisation and must enter in German market.

REFERENCES
Books and Journals
Achinas, S., Horjus, J.,. and Euverink, G. J. W., 2019. A PESTLE Analysis of Biofuels Energy
Industry in Europe. Sustainability. 11(21). p.5981.
Gause, R., 2016. UCF Research Guides: Business Research--Industry Analysis: PESTLE
Analysis.
Kochkina, N., 2019. DYNAMICS OF PESTLE FACTORS OF UKRAINIAN MARKET
ENVIRONMENT. Sustainable development under the conditions of European
integration. Part I, p.250.
Koshesh, O.S. and Jafari, H.R., 2019. The Environmental Strategic Analysis of Oil & Gas
Industries in the Kurdistan Region Using PESTLE, SWOT and
FDEMATEL. Pollution. 5(3). pp.537-554.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Policy, P., 2018. What is pestle analysis.
Sarwar, D., Ramachandran, M. and Hosseinian-Far, A., 2017, January. Disaster management
system as an element of risk management for natural disaster systems using the PESTLE
framework. In International Conference on Global Security, Safety, and
Sustainability (pp. 191-204). Springer, Cham.
Zahari, A.R. and Romli, F.I., 2019. Analysis of suborbital flight operation using
PESTLE. Journal of Atmospheric and Solar-Terrestrial Physics. 192. p.104901.
Online
Ottely. 2020. [Online]. Available through: <https://www.ottely.com/#welcome-to-ottely>

APPENDIX
Company profile
Ottely- Bespoke leather goods
Headquarter in Gloucestershire
Deals in bags, belts, wallets and related products.
Aim is to provide premium quality product at nominal rate to the consumers.
Country profile