Strategic considerations for expanding into the German market:
Company Ressources:
Sourcing:
Is your current sourcing structure set up to work in different scenarios (best/worst case) during your expansion into Germany?
Do the lead times and capacities allow for your campaign to succeed?
Analyzing your supply chain for potential bottlenecks beforehand, significantly reduces the need for expensive interventions during your campaign.
Human ressources:
Do your employees have the tools and abilities to deal with additional customers from a different region?
Training and informing your employees about the growth strategy, and how they are an important part of it, is essential for the motivation and commitment in your team. Having some external support for difficulties can help your team to adapt to the new situation quicker and more confident.
Capital:
Do you either have a fixed budget to achieve the maximum of success? Or do you have a fixed target to reach by most effectively using your financial ressources?
How important is the effect of expansion (additional stock, bound capital, turnover rate, cashflow) for your company and your investors?
Finding the right balance between having a flexible supply chain and cost effective sourcing is a determining factor for picking the best strategy and will have a significant impact on above mentioned metrics.
Marketing:
Information:
Do you have enough information about the market (demand/competition) and the region to make an informed decission and build a successful campaign?
Local support can be beneficial to assess and provide you with insights and data on the targeted market.
Route to market:
Which route to market is most beneficial to support your strategy? Is it direct-sales through your webshop or would it be better to use one of the big platforms in the targeted area? Could the route via wholesale/retail be an option?
The most suitable route to market is based on your brand, the specified expansion target, the timeline and your available ressources.
Positioning / Brand Management:
Do you want to position your products similar to your home market? Are deviations from the current position neccessary because of local preferences?
Positioning refers to how the Image, Price, Quality, Services and your Corporate Identity are to be presented to your potential customers.