German TP Environmental Analysis and Term Paper

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Strategic Research

Toilet paper is a product used by virtually everyone in modern society, and this the potential market size for biodegradable toilet paper in Germany is limited only by the size of the German population, for all practical purposes. As the offered product is highly differentiated, it will have a distinct advantage over competitors at least insofar as appearing obviously different from standard toilet paper rolls. At the same time, the lack of familiarity of the new product might be off-putting for German consumers, and with a commodity at once as necessary and yet as cheaply and readily available as toilet paper, there really is no way to create extra demand, expand markets, etc. Differentiation, then, is the key selling point of biodegradable toilet paper, and the environmental sensibilities of the average German consumer will likely be a major factor in their decision to change to the new product.

Tactical Research

There are several different viable options for the introduction of this product to the German market, including joint agreements and foreign direct investment by setting up manufacturing and distribution facilities in the country itself. For both short-term costs and to minimize risks, however, exporting the product to the country is seen as the most profitable alternative. This will allow for the manufacture of the product in a country with a lower business tax rate and different employee regulations and expectations, contributing to a significant cost savings when compared to building and maintaining manufacturing within the country itself.

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There are also some obvious risks to the strategic and tactical implementation of the market entry plan, including the competitiveness described above. The saturation of the toilet paper market is a major obstacle for any new company or product attempting to enter this market in any developed country, as the purchase and use of this product is almost universal and likely largely unconscious on the part of the consumer. The nation as a whole is also highly protective both in terms of its official economic policies and amongst its population's spirit generally, which could lead to resistance to the purchasing of a product that is manufactured in a foreign nation and exported to Germany. Through effective marketing and strong product differentiation, however, it is still believed that exportation will prove the most profitable long-term entry option for this product in the German market.

Conclusion

Theories of market entry have a great deal of applicability to real-world situations, and this assignment made many of these connections quite clear. The success of different options that exist in terms of market entry modes and operations is highly dependent on the specific details of the market being entered and the product being offered; examining a real-world scenario utilizing real demographic and environmental data makes these dependencies and the differences of these various strategies highly visible. Other theoretical options might dictate different strategies, but those encountered thus far appear to be highly applicable and….....

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