Question

Diamond of National Advantage Analysis for the country of Germany for supermarkets.

Answer 1

National Advantage Analysis for the country of Germany for supermarkets

Germany can be considered the center of both Europe because of its geographical and political position. This allows Germany to lead the European market and to control the diversification of its internal economy; This means creating a highly competitive business environment for German companies.

The efficiency ratio of big and small companies in Germany is higher than international standards due to the amount of redundancy and external performance that make it the most competitive economy in Europe.

In recent years, Germany SMEs have outperformed even the biggest competitors in the United States, as the 2010 Labor Competition Yearbook shows.

These small entrepreneurs are called hidden champions because they are not well known to the public, even if they are world market leaders.

Contrary to the practices of other European countries, economic development associated with Germany's major industrial champions can be viewed as a private economy, where SMEs play a crucial role in boosting investment rates. And employment rates. They also include the success of German exports, with 80% of production being sold abroad. For example, machinery and machinery clusters account for nearly 20% of the global export market.

These companies successfully compete in innovative and efficient processes, benefiting both European and German intellectual property protection. According to the World Economic Forum (WEF), Germany represents one of the best places in the world for security planning and operations and one of the leading countries in defense and contract protection. This excellence allowed Germany to grant more than 12,500 patents to the European Patent Office in 2010 alone and to become the European leader in the "patents" listed in the three most important patent offices in the world: the Office European patents, patents and trademarks. U.S. Patent Office and Japan Patent Office.

The German legal system itself can be regarded as one of the most effective and independent systems in the world. On the other hand, the social and political stability of the country and its German culture, based on full compliance with legal principles, make the country a very attractive place for corporate investment projects, even for foreign companies in almost every industry.

In addition to the high quality of legal organizations, Germany has created a highly competitive international tax system: in 2008 ambitious reforms were implemented to reduce corporate tax burden by 25% and corporate tax to 15%. On all corporate tax revenue.

Finally, Germany has established a special corporate governance system that enables better competition between workers and employers to avoid time-consuming conflicts and reduce costs: it is key to success during the Great Depression. Of course, key decisions are made through labor alliances that allow for flexible security in the labor market to maintain firm competitiveness while maintaining employment.