Group Consulting Project Oroton International Entry and Expansion Strategy in China  

1.0 Introduction

   Oroton was founded in 1938 in Sydney and built their success on luxury products with a relaxed style and high quality. Today, Oroton sells a wide range of products, from various clothing to jewellery and accessories such as wallets and even ties and umbrellas.

We selected Oroton due to an interest in whether or not an Australian fashion label would succeed overseas in a market with other larger global brands.

   As Oroton has already successfully expanded into Hong Kong, Malaysia, New Zealand and Singapore (The OrotonGroup Annual Report, 2012) it makes sense that it would continue its expansion into additional foreign markets to continue this success. China has been chosen as the next market to enter for three key reasons. Firstly, neighbouring to Hong Kong means some of the liability of foreignness will have already been overcome, secondly due to the increased buying power of the emergent middle class and finally because of the strong market growth of the fashion industry.

2.0 Analysis of Orotons Resources and Capabilities

   The Oroton brand is one of the primary value adding components of the company. This is because of the image that they have built up over the last seventy years of business, and the loyalty that their customers have developed towards the brand. Through social media and fashion recognition Oroton have been able to expand their brand awareness both domestically and internationally.

   The brand itself is inimitable as there is only one Oroton brand, and the style of the products and the underlying quality underneath should not be underestimated as being one of the key items in Orotons success. The distinctive metallic mesh is the soul of the brand; this special design was born in 1951 and has become a symbol of elegance, luxury and sophistication (OrotonGroup Annual Report, 2011). Whilst styles can be copied, the style whilst combined with brand recognition adds a great deal of value.

   Another key component of...