Verified Document

Market Entry Methods Used Most Frequently Into Germany Term Paper

Related Topics:

Market Entry Strategies Into 2004 Germany: High Value, Low Volume Is the Key to Overcoming German Pessimism and Conservative Consumerism Because of its relative political stability, and great economic wealth, Germany remains one of the most desirable countries for investment and market entry, in all of Europe. In short, there are, comparatively speaking, many Euros floating around the nation to be spent, despite the conservative investment policies of the average German worker, and the recent European recession. Wages are high and lifestyles of individual Germans are affluent. But the German consumer remains wary, for taxes are high as well, and labor unions are strong, and the system of social services encourages a way of living that is not disposable, as in America, but tends to place more of a stress upon quality of life, via long vacations and enjoyment of what one has, than conspicuous consumption. (U.S. Commercial Services, German Business Practices, 2004)

Some popular venues of market entry into Germany have involved, "strategic alliances with local firms" ranging "from direct marketing, retail, and wholesale distribution companies for low value/high volume products; to systems integrators and value-added resellers, which are service oriented, highly skilled and usually specialized by market sector, for low volume and high value products. These alliances provide access to market sectors, and local support," from German firms, which is especially desirable, given the frequent need to overcome occasional bouts of German consumer xenophobia of American or foreign-based products (Austrade, 2003)

But this above-quoted...

After all, doesn't every market wish to get the biggest 'bang for its buck/Euro/yen' with the greatest quality possible? And isn't even the slogan "Buy American," a selling point that our own nation frequently touts, that was only overcome in the 1980's by many manufactures, such as Toyota. However, when approaching the German market of today with an eye upon entry, the stress upon perceived and real high product value is key. For market entry into Germany, quality rather than quantity, when selling technological or durable goods, is even more important, to secure a market foothold, than it is for the United States. The German consumer is not part of the American culture of shopping, of shopping at malls for recreation alone.
Quality and value are more important marketing stress points for German consumers. For instance, the 'cuteness' factor that may draw in a Japanese or a teenage United States consumer of technology, such as a multicolored iPod, is simply not present in Japan. (Austrade, 2003) Also, despite the 2003 recovery from a period of economic decline, moreover, "Germans often have a hard time living down their reputation for pessimism, and Americans are almost automatically expected to be optimistic." (Invest in Germany, Sept 2004) This pessimism regarding economic forecasts results in the more conservative consumption behaviors detailed above.

Thus, when marketing any product and positioning one's entry into Germany, the stress must be upon something that is built to last, that is purchased not on an impulse, but in…

Sources used in this document:
Works Cited

Austrade. (2003) "Market Entry Strategies: Germany." Retrieved on September 28, 2004 at http://www.austrade.gov.au/IT/layout/0,,0_S4-1_wqcrz1e-2_-3_PWB1527372-4_marketstrat-5_-6_-7_,00.html

Invest in Germany. (September 2004) Retrieved on September 28, 2004 at http://www.invest-in-germany.de/en/news/magazine/2004_08/_html/artikel_06.htm

U.S. Commercial Services. (2004) "German Business Practices." Retrieved on September 28, 2004 at http://www.buyusa.gov/germany/en/practices.html#_section5
Cite this Document:
Copy Bibliography Citation

Related Documents

Market Orientation of Medical Diagnostic Units Dissertation
Words: 21636 Length: 76 Document Type: Term Paper

Market Orientation of Medical Diagnostic Units Dissertation for Master of Health Administration i. Introduction ii. Objectives iii. Description iv Administrative Internship v. Scope and Approach vi. Growth vii. Methodology viii. Hypothesis ix. Survey Questionnaire x. Research Design xi. Observation and Data Presentation xii. Test provided xiii. Analysis of findings Marketability of Patient Satisfaction Importance of Employee Satisfaction xiv. Conclusions and Recommendations xv. Bibliography xvi. Notes xvii. Appendices Market Orientation of Medical Diagnostic Units

Entry Strategy Into the German Market
Words: 7600 Length: 20 Document Type: Term Paper

Strategic Planning for Market Entry Barriers to Entry Market Challenges Trade Barriers Standards EU Regulations Conformity Assessment Product Certification Accreditation Market Entry Strategy Selection Franchising Joint Ventures/Licensing Licensing Agents, Distributors and Trading Houses Agents Distribution and Sales Channels E-Commerce Germany EU Regulations Strategic Alliances, Licensing and Franchising Joint Ventures Foreign Direct Investment Finding the Right Partner Negotiating a Partnership Agreement The Agreement Checklist Have the salient points of the agreement been agreed upon in principle? Participants and their Roles Negotiation Baselines Section 10: Managing International Business Operations Exit Strategies Conclusion Introduction In this work, the case study of Tesla Motors has

Sales Promotion Techniques Used in
Words: 12044 Length: 44 Document Type: Term Paper

Since the 1970s, the global retail clothing industry has experienced intense international competition and major shifts in the pattern of consumer demand. These pressures have had far-reaching implications for the clothing industry in the areas of pricing, design, quality, manufacturing processes and employment (Rath, 2002). According to this author, "In the 1970s, traditional manufacturers, particularly High Street retailers with their own manufacturing capacity, found themselves unable to compete with low

Market Driven Management
Words: 25695 Length: 75 Document Type: Term Paper

Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense

Optics Applications in Information Technology
Words: 6228 Length: 21 Document Type: Term Paper

The scanner's ability to translate typewriter characters into bit-mapped image into ASCII text depends on a number of factors, including the sensitivity of the device itself and the legibility and method of preparation of the original document; however, improvements are being made all of the time and even formerly graphic-based scanning systems such as Adobe's notoriously slow PDF applications have incorporated character recognition systems that allow for textual scanning.

Delphi Study Influence of Environmental Sustainability Initiatives...
Words: 17687 Length: 60 Document Type: Literature Review

Delphi Study: Influence of Environmental Sustainability Initiatives on Information Systems Table of Contents (first draft) Green IT Current Methods and Solutions Green IT and energy costs Green It and Email Systems Green IT and ICT Green IT and ESS Green IT and TPS Green IT and DSS Green IT and other support systems Green IT and GHG reduction Green IT and the Government Sector Green IT and the Corporate Sector Future Prospects of Green IT in the software industry The paper focuses on how the

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now