We Build Better Business Through Made in Germany Reputation
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We Build Better Business Through Made in Germany Reputation
Germany is the largest economy in Europe and the fourth-largest economy in the world. Driven by industrial production, the country is the third-largest exporter and maintains the highest trade surplus in the world. The country also houses nearly 40 of the world's 500 largest publicly-traded companies, which makes it an important country for international investors.

Germany's largest companies can be found in the DAX 30 Index, which is similar to the Dow Jones Industrial Average in the United States, and contains the 30 largest Germany companies by market capitalization trading on the Frankfurt Stock Exchange. The index contains some household names like Adidas AG, BASF SE, BMW AG, Bayer SE, Siemens AG, MAN SE, and many others.
Start up or developing a business in a new market is a complex process. On any given day, you'll deal with a new challenge, financing, (new) market challenge, customer niche, rules, custom & cultural issues, find a reliable partner, and other headaches. On top of all that, COVID-19 has introduced additional responsibilities.

Your company is unique. Your products, services, people and marketplace all make you different from any other manufacturer. But no matter how successful your business is, you are unknown in the new market. The following five challenges are those we most often hear from manufacturers:

Business model/concept
Cultural and communication
Rules, politics and regulation
Foreign policy

Wal-Mart tried to apply its US success formula in an unmodified manner to the German market. As a result, they didn't have sufficient knowledge about the German market culture and structure and key cultural/political issues. In addition, structural factors prevented Wal-Mart from fully implementing its successful business model.
When entering a new market, it is important to anticipate competitors' strategy and reactions.

To successfully develop or set-up your brand and business in Germany, knowing the local market structure and business concept/model, business culture, rules, shopping habits, language, market research and analysis, competitor research and analysis, thorough planning, communication, accurate execution... and reliable partners or joint ventures are essential. Therefore you need a German- based business consultant.
We know the German rules, culture, market, shopping habits, language and...;

We build or expand brand and businesses that are compatible with this market and culture.
Case Study
How not to enter the German market: The Example of Walmart

Wal-Mart is the biggest food retailer in the world and has a presence in several nations. In some nations (e.g. the US, Canada, China), Wal-Mart is a great success. However, Wal-Mart has failed in some countries (e.g. Germany, South Korea). First, we describe Wal-Mart's failure in Europe's largest economy. Second, we use Wal-Mart's experiences in Germany to illustrate some key principles related to product failure and product deletion. Wal-Mart's experiences are also an example of the importance to adapt to culture and rules when starting a business in a new country.

The German grocery industry
There is fierce competition in the German grocery industry, due to the increasing number of discount supermarket chains (KPMG 2006). As a result, there is low profitability in the food retail sector; profit margins range from 0.5 per cent to 1 per cent which is one of the lowest profit margins in Europe (Frankfurter Rundschau 2007). By contrast, profit margins in Great Britain are 5 per cent, in this same sector. In particular, Metro is a tough competitor, and it already applies some of Wal-Mart's successful strategies (e.g. related to economics of scale and low prices). Of course, Wal-Mart is interested in other metrics beyond profit (e.g. shareholder wealth, market share), but, as indicated above, profitability and margins are of key concern to retailers.

Wal-Mart: strategic concept
Wal-Mart is the world's largest retailer with approximately 6,500 stores worldwide (Business 2006). The main feature of Wal-Mart's business model is to cut costs (continuously) and therefore offer lower prices than their competitors. For instance, Wal-Mart has introduced new logistical technologies such as radio-frequency identification (RFID) to optimize its logistic processes. RFID is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. Wal-Mart tries to minimize labor costs by offering minimal health care plans. Wal-Mart pressures its suppliers to cut costs, on a continuous basis. In brief, Wal-Mart's managers are constantly seeking out ways to cut costs, and some of their successes are passed on to shoppers, in terms of lower prices.

Wal-Mart's entry into the German market
In 1997, Wal-Mart acquired over 21 stores from the supermarket chain "Wertkauf." One year later, Wal-Mart bought an additional 74 stores from the supermarket chain "Interspar". As a result, Wal-Mart became the fourth biggest operator of supermarkets in Germany (Lebensmittelzeitung 2006). The objective was to expand to 500 stores in Germany. However, the number of stores never exceeded the 95 stores that were originally purchased in the first two years. Wal-Mart's position in the marketplace deteriorated over the years. In 2002, Wal-Mart had some financial difficulties due to a low turnover which resulted in the dismissal of some employees. At the end of 2006, Wal-Mart was bought out by "Metro", one of Germany's largest retail groups. Finally, Wal-Mart left the German market with a loss of one billion dollars before tax (Manager-Magazin 2006).
Mis-steps in the german market

In general, there are five key issues related to Wal-Mart's ultimate withdrawal from Germany:
- Market structure
- Business model/concept
- Cultural and communication
- Rules, politics and regulation
- Product and service
Notice: This example/text/information is just for a better understanding of the page subject. We assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics and datas can changes or up-to-dates.
Made in Germany
According to a recent study, goods from Germany and the EU are the most popular worldwide.

Germany. High-quality and durable is what people all over the world associate with products bearing the "Made in Germany" label". In existence for 130 years now, it was originally intended as warning about cheap copies from Germany: Back then, knife manufacturers in Sheffield were complaining about inferior-quality copies of their products from Germany; this marked the beginning of the label, which within a very short space of time changed completely and became a quality seal.
Business in Germany
Germany is one of the world's largest and most stable trading economies, offering a secure, highly developed political and economic framework. Its strong legal protections enable investors to quickly enforce their rights and protect their industrial and intellectual property.

Germany is a very attractive market for investors and new business owners alike. It is the largest economy in Europe and ranks as the fourth-largest global economy.

Germany has a highly civilised culture and a consistently strong economy. The German way of doing things is not so much about national stereotypes, but is about the ways of doing business that Germans feel comfortable with and that they find works for them. Foreign businesses looking to trade in Germany should take careful account of this cultural context.

The business set-up or development process in Germany isn't restricted to administrative tasks alone: to give your company the best possible start, you'll need to understand the professional landscape around you. Germany is made up of 16 constituent states, each with its own distinct regional character, culture and customs relating to issues like punctuality, status, politeness, and, corporate and social responsibility. To ensure your business attracts the right employees, clients and customers, it's worth taking the time to become familiar with the business community you're planning to join.
Brand in Germany
The 50 most valuable brands in Germany have a combined value of €263 billion, according to a new study, which places Germany's top companies ahead of their peers in the UK and France. SAP, Deutsche Telekom, BMW, Daimler and Deutsche Post lead the way, with automotive the country's standout sector.
The analysis, conducted by professional services giant WPP, assessed the 'brand value' of Germany's top companies – which is a measure of how much a brand alone contributes to corporate value, both in terms of financial value and non-quantitative components. The data found that similar to in other countries, but more so in Germany, value is concentrated at the top of the ranking, with the top two brands – SAP and Deutsche Telekom – between them accounting for 29% of the value of the leading 50 brands combined. In comparison, in the UK, the top two brands provide 21% of the top 50's value.

Unsurprisingly, the automotive industry plays a key role in Germany's brand elite. There are five leading global car brands in the German Top 50, a feat which is unmatched in any other national WPP ranking for Western economies. Combined, BMW, Mercedes-Benz, Porsche, Audi and Volkswagon account for a staggering 22% of the total €263 billion brand value. "Germany itself has become synonymous with the design and engineering of the many automotive brands it has produced. These are brands that have made consumers all over the world willingly pay a premium for "Vorsprung durch Technik", without even knowing quite what it meant," said David Roth, CEO of The Store, WPP's division that serves the retail and fast moving consumer goods sectors.

Germany is also the only European market to be led by a technology brand. With a brand value of $48.9 billion, SAP is the undisputed leader in Germany, alone accounting for 16% of the value of the entire German top 50. The company, which was founded in the early 1970s by five entrepreneurial engineers with a vision to change the way companies do business, is today a world leader in enterprise applications – 87% of Forbes Global 2000 companies are a user of SAP software.

Given the strength of Germany's reputation as a leader in the sector in finance, the relatively small influence of financial services brands is apparent – there are only a handful of banking and insurance businesses in the top 50, including Deutsche Bank and Allianz. Across the board, the top 50 is comprised of brands from 19 different categories, spanning home appliance, apparel, beer, travel, aviation, grocery and media, among others. 2018 ©consultancy
Invest in Germany
Situated at the heart of Europe, Germany offers excellent opportunities for investors from around the world - and becoming a German resident ensures that you can benefit from all that Germany has to offer.
Not only can investing in Germany be very profitable for those who make the right moves, based on reliable advice, but it can also be a means to gain German residency, and later even German citizenship through naturalisation.
Start a Business
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We believe that any successful business is built on four basic basis, and every company at every level needs to develop one or all of them; business, product and service, brand, and market.

Through defining, designing, developing, and delivering, we provide tailored-made and effective solutions to business, product and service, brands and market challenges.

For better results, we suggest you attend our strategy session - Workshop - so we can discover more about you, your business, your vision for the future, and your possible challenges; and accordingly, provide you with the best business, product and service, brand and market solution possible.
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