The Cultural Environment

According to Edward T. Hall definition between Low-context and High-context, German can be classified as Low-context cultures. Communication is direct and explicit, and meaning is straightforward. For example, evaluation for our products may be very directly by the customers. Furthermore, it is more emphasis on contracts and clause in the country which represent Low-context such as German. We’re using the licensing to selling bubble tea in Germany.

The reason why we adopt the licensing can refer to the following viewpoint. ?Our company is governed by a contract that provides the focal firm which in Germany with a moderate level of control over the foreign partner. It means that we have more ability to influence the decisions, operations, and strategic resources for our products. ?Typically include the exchange of intangibles (intellectual property) and services.

Intangibles that firms exchange include various intellectual property, technical assistance, and know-how. ?Licensing provide dynamic, flexible choice. Initial entry in foreign markets using the licensing can provide more flexibility. Then, as conditions evolve, we can switch to another, often more advanced entry strategy. GLOBAL EXPANSION STRATEGIES German’s drink culture is different from Taiwan. Our products, for example, may not attract customers to buy.

So we have some changes/adaptations to our products. In five types of global expansion strategies, we decide to choose the third type (i. e. Product Adaptation—Communications Extension) to be our strategies. So, in our communication strategies will similar with Taiwan. To keep the origin image of the brand, it is a way to use the standardized communications strategy to contact with our target customers. We’ll sell those products in Germany as following: