Which of the Europe's Beer Markets offers the highest unrealised Market Potential? (PDF)

Master's Thesis from the year 2004 in the subject Business economics - General, grade: Distinction (75 - 85%), University of Western Sydney, course: Master's Project in International Business, language: English, abstract: The overview of the whole process that enabled us to suggest the final
candidate country for the future business expansion in Europe presents steps that
our consulting team had to take in order to present the best possible option.
According to our consulting team, Germany presents the strongest
advantages for OBUL and should be chosen as the ideal for the business operation
and also the base for the further European expansion. Thanks to the highest size of
population in Europe and its overall wealthy condition from the very beginning of
our analysis Germany became one of the possible final candidates.
However, during the whole process of defining attractiveness of individual
markets, several other countries also presented strong advantages for the future
investment. The strongest advantages were shown by Spain and Italy which
presented nearly the same result in the evaluating process than Germany did.
In the final stage of the analysis Germany was selected form the group of
four strongest European candidates. These were also Ireland, Italy and Spain. All of
the candidate countries presented very strong and attractive beer markets in terms
of beer and alcohol consumption as well as the GNI PPP income per capita.
Moreover, the analysis of the infrastructure, legal and political environment also
proved that these countries were the top four; amongst all of the candidate countries
that were analyzed at the beginning of the selection process (42 countries took part
in the first step of the selection, 27 in the second).
Germany proved to be the best possible choice for the future business
expansion in Europe. The analysis showed that the German market was more
attractive for OBUL in three main areas of operation: market viability, commercial
viability and technical feasibility.
The analysis of the market viability as the most important area for a market
entry showed, that the German beer market was very attractive in terms of its size
and trends that appeared in it. Moreover, the overall financial situation of the
customers was also considered to be strongly attractive.
In terms of the commercial viabilities, Germany also presented its strong
position. Even though, the corporate tax was defined as a very high, the market size
and its potential should compensate loses that company will have to face in terms of
the taxation.
Finally, Germany's infrastructure also confirmed to be well established and
will definitely be able to cope with needs of OBUL.