Otto Group's International Business Expansion: Strategies and Analysis

This essay provides an analysis of Otto Group's international business expansion strategies, focusing on the steps taken for international expansion and the various country entry modes employed by the company. It discusses the use of innovative concepts within multi-channel business, increasing market share in regions like China and Brazil, and reviewing investment options within European markets. The essay also highlights the importance of product gap analysis for high-impact product differentiation and evaluating the organizational structure to aid international expansion. Furthermore, it examines Otto Group's country entry modes, including takeovers, acquisitions, and joint ventures, particularly its partnership with a Chinese online marketplace. The essay references academic sources to support its analysis of Otto Group's strategic approaches to international business.

Running head: INTERNATIONAL BUSINESS OF OTTO GROUP
International Business of Otto Group
Name of the student
Name of the University
Author note

1INTERNATIONAL BUSINESS OF OTTO GROUP
Steps taken by firm for international expansion
The Otto Group can make use of innovative concepts within multi-channel business for
facilitating the process of international expansion. It can increase the market share in different
economic areas like that of Chinese along with Brazilian markets (Mohr & Batsakis, 2018). Otto
Group should review the investment options within that of European markets for strengthening
the multi-channel strategy of the company (Saylordotorg.github.io., 2018). On the basis of
product gap analysis, the products of Otto Group should be tailored in such a manner that it can
achieve that of high- impact product differentiation. The organizational structure of Otto Group
should be evaluated that can aid in the process of international expansion (Youtube.com., 2018).
Otto Group should prioritize about the countries that it wants to enter in the beginning and it
should evaluate the merits of that country (Albino Pimentel, 2015).
Country entry modes of Otto Group
The country entry modes of Otto Group pertain to takeovers along with acquisitions. It
wants to build on the arena of market leadership within the Russian mail order. It wants to
expand over the counter retailing in that of multi-channel retail segment. The joint venture deal is
taken recourse to by Otto Group for the purpose of market entry that can help in increasing
international e-commerce (Yoder, Visich & Rustambekov, 2016). Otto Group has entered into a
joint venture with the Chinese online marketplace that has incorporated the subsidiary of Otto
called Zitra Gmbh. These kinds of ventures are taken recourse to by the Otto Group for country
entry that can help in the connection of international brands (Jiang, Holburn & Beamish, 2016).
The country entry modes of Otto Group vary from acquisitions to that of joint ventures that
facilitates the process of country entry of Otto Group.

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References:
Albino Pimentel, J. (2015). The Effects of Political Connections on the International Expansion
Strategy. In Academy of Management Proceedings (Vol. 2015, No. 1, p. 15138).
Briarcliff Manor, NY 10510: Academy of Management.
Jiang, G. F., Holburn, G. L., & Beamish, P. W. (2016). The spatial structure of foreign
subsidiaries and MNE expansion strategy. Journal of World Business, 51(3), 438-450.
Mohr, A., & Batsakis, G. (2018). Firm resources, cultural distance and simultaneous
international expansion in the retail sector. International Business Review, 27(1), 113-
124.
Saylordotorg.github.io. (2018). International Expansion and Global Market Opportunity
Assessment. Retrieved from
https://saylordotorg.github.io/text_international-business/s12-international-expansion-
and-gl.html
Yoder, S., Visich, J. K., & Rustambekov, E. (2016). Lessons learned from international
expansion failures and successes. Business Horizons, 59(2), 233-243.
Youtube.com. (2018). International Marketing : Introducing Modes of Entering in International
Business. Retrieved from https://www.youtube.com/watch?v=oGgQHzxV6Z8