German Technology Company
The availability of a highly developed social market economy in Germany improved its marketability within and outside the country. Germany has the fourth largest nominal GDP in the world and the biggest economy in Europe, which quotes the country’s economic status. Following China, Japan, and the USA, Germany’s market depends on using innovation and international exports for many businesses especially for German Technology Company. The availability of the European Union as Germany’s trade partner created a market in the USA, China, Netherlands, and France for exported products depending on the presented demands (Braja & Gemzik-Salwach, 2020).
Having a Technology Company in Germany forges a gap for massive growth since the country’s tech industry has research’s estimated growth of up to 133 billion dollars by 2026. The paper discusses the German market by referring to a German Technology Company to identify things to look at when deciding whether or not to market products internationally, a country’s disposable income, patent protections, environmental regulations, and production center.
German Technology Company
German is well known for its thriving technology industry hence, marketability in the international market. Before marketing a German Technological Company’s products internationally, there is a need to understand the most suitable international market (Horbach & Rammer, 2020). The disposable income of a country, the patent protections, environmental regulations, GDP growth, brand recognition, political factors, market landscape, and country risk are essential to look at when deciding whether or not to market products internationally (Doole & Lowe, 2012).
A country’s disposable income identifies consumers’ spending habits, the health of a nation’s economy, potential future savings, and payment ability for various products, including high-end technology products. Identifying countries with increasing disposable income shows areas whose households have more to save than spend, increasing spending chances. The USA’s disposable income being high structures the country as the largest market for German products since consumers are more likely to spend extensively.
Disposable Income
Therefore, by reviewing the disposable income of a country, technological product marketing internationally cannot be in regions where disposable income decreases. Patent protections in every country determine the ability to commercially produce, distribute, use, and sell a product when with consent from the product’s owner. Before investing internationally in a German Technology Company, understanding the patent protection laws of a country like the USA is significant to gain more social support in innovating and developing new products. Ensuring the availability and acquiring patent protection before international marketing allows exclusive legal rights to market, manufacture, sell, and profit from technological products.
Environmental Regulation
Environmental regulation often limits organizations and individuals from various dealings for environmental preservation to avoid degradation. The Federal Trade Commission (FTC) acts as an environmental regulatory force that monitors advertising, misleading information, and any deceptive labeling used by organizations marketing internationally (Daniek, 2020). Identifying the environmental marketing factors that boost or degrade international markets, economic, political, socio-cultural, legal, and technological, is crucial for proper environmental regulation.
The absence of proper regulations in the international market associate with using environmental marketing factors to ensure success. Possible accidents from the technological products business against environmental regulations can cause legal and economic repercussions to the German Company. The growth prospects of countries in the context of infrastructure and tourism products demand identify the potential of an international market; thus, it is essential to market products internationally in countries with high GDP growth potential.
Company Brand
Recognizing the company’s brand worldwide determines the product’s ability to attract a broader target market in the international market (Doole & Lowe, 2012). Therefore, before marketing the technology products internationally, it is essential to know whether the international market knows and appreciates its brand. Political factors like trade agreements, political interventions in business decisions, and social/political stability are significant determinants of successful product marketing internationally. Political factors affecting the international market must be positive to avoid adverse effects on successful international marketing.
Before investing in international marketing of technological products, the market landscape is essential to know the leading players in the market, crucial characteristics, the strengths of the key player, and the used outreach strategy (Doole & Lowe, 2012). It is possible to know competitors and the significant international markets through the market landscape to exploit used strategies and their strengths for a profitable market.
The risk of a country to currency devaluation, social or political unrest, and insecurity determines the success or failure of businesses in the state. Avoiding exporting technological products to countries with the highest risk when expanding to international markets is essential for the business’s success. German’s focus on testing, innovating, and producing quality products with support from the public and the government notes it more lucrative to make technological products in Germany before exporting to the USA (Horbach & Rammer, 2020).
Personnel
The presence of such highly skilled personnel in Germany who are proficient in engineering and technical skills and a successful vocational training system is a plus. As such, the products will satisfy the set standards, sustain customers’ demands, and be of excellent quality. Material and the workforce in the USA do not allow for producing similar quality as Germany’s. Hence, it is best to export from Germany.
In conclusion, German’s investment in innovation, research, and development allows quality production in many fields, including technology. As a country with the fourth largest GDP, Germany attains the latter by exporting to many countries. This includes the USA, China, France, and the Netherlands, due to the European Union’s influence. However, when working with a technology company in Germany, research is needed before marketing internationally.
Besides, understanding the disposable income of a country, the patent protections, environmental regulations, GDP growth, brand recognition, political factors, market landscape, and country risk confirms whether a country is suitable for investment to ensure profits. The presence of a skilled workforce and the ability to produce quality technological products deems it better to export the goods to the USA instead of making the products in the USA.
References
Braja, M., & Gemzik-Salwach, A. (2020). Competitiveness of high-tech exports in the EU countries. Journal of International Studies, 13(1). https://www.ceeol.com/search/article-detail?id=981685
Daniek, K. (2020). Green economy indicators as a method of monitoring development in the economic, social and environmental dimensions. DOI: 10.15584/nsawg.2020.2.10
Doole, I., & Lowe, R. (2012). International marketing strategy (Vol. 7). Cengage Learning. https://images.template.net/wp-content/uploads/2015/10/09212256/international-marketing-plan-template.pdf
Horbach, J., & Rammer, C. (2020). Circular economy innovations, growth and employment at the firm level: Empirical evidence from Germany. Journal of industrial ecology, 24(3), 615-625. https://doi.org/10.1111/jiec.12977