What do you need to level up your market?
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Market
When building a successful business, there are several steps to take. These steps will vary depending on the stage your company is at and the complexity of the product or service. In addition, how ready is the market to accept that product or service?

A market type is a way a given group of consumers, service providers and producers interact, based on the context determined by the readiness of consumers to understand the product or service, the complexity of the product or service; how extensive is the existing market and how much it can potentially expand in the future?

Why does it matter to understand the market type?
Challenge
Business development and entry into a new market are complex processes. On any given day, you'll deal with a new challenge, financing, (re-invented) market challenge, customer niche, rules, custom & cultural issues, finding a reliable partner, and other headaches.

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 foreign manufacturers:
Solution
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 (and EU countries) rules, culture, market, shopping habits, market language and...;

We build or expand brands and businesses that are compatible with this market and culture.
25%
Discover
Company Research and analysis
Competitor Research and analysis
Market Research and analysis
50%
Strategy
Market Strategy (EU/German Market Entry Strategy)
Sales Strategy
75%
Define
Market Definition
Customer Journey Definition
100%
Deliver
Market Road map & Timeline
Change management
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 six key issues related to Wal-Mart's ultimate withdrawal from Germany:
- Business (Business model/concept)
- Product and service
- Brand
- Market (Market Structure)
- Cultural and communication
- Rules, politics and regulation
Notice: This example/text is just for a better understanding of the page subject. We assume no liability for the information given being complete or correct. Due to varying update cycles, statistics and data can changes or up-to-dates.
FAQ
Here is an overview of the most frequently asked questions about business and business strategy.
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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.