Verizon's Entry into the German Wireless Communications Market Analytical Essay by RightRiters

Verizon's Entry into the German Wireless Communications Market
A paper written as a review by an advisory firm of a proposal by Verizon Wireless to enter the German market.
# 22896 | 3,169 words | 11 sources | MLA | 2002 | US
Published on Jan 13, 2003 in Business (Companies) , Business (Industries) , Business (International)

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This paper reviews a recent proposed expansion of wireless service into the German cellular phone market. Verizon wishes to partner with a German firm that has access to the cell phone market so as to avoid costs relating to licensing and market regulations. In assessing political factors affecting the German economy, the paper, in a form of a review, highlights recent shifts in national policy, Germany's status within the European Union, some basic facts about German demographics and local business practices. Germany's current government is run by a center-left coalition, which lacks the popular mandate of the electorate. Its chancellor advocates a reform package that aims at raising taxes to prevent a budget crisis amidst a population with rising unemployment costs. This package has been criticized by most economists and has prompted a large street demonstration. Despite this, it can be said that the German business ethic is as strong as it always has been, and Germany represents a stable investment environment. The paper goes on to provide an analysis of the wireless telecommunications sector in Germany and Europe. Here it was found that the greatest barrier to the introduction of cellular technology in Germany is that 70% of the population already has one, compared to 45% of the population of the United States. The introduction of third stage mobile phones, which will replace current cell phone technology, provides an opportunity to introduce a new mobile calling plan on a national basis. The report addresses basic problems with this sector and with an American company attempting to enter the market. The report concludes by ultimately deciding against the introduction of cell phones to Germany.

From the Paper:

"Foreign observers have lauded many aspects of German production methodologies. Many believe that the German market economy is a highly developed organic one, enshrined in centuries of mercantile tradition, and in as such provides a much more stable business environment than neo-liberal Anglo-American models. This is reflected primarily in corporate relations with workers. Workers in Germany are world-renown for their craftsmanship, and with good reason. Germans workers see themselves as apprentices in the tradition of the guild halls of the middle ages. German companies not only spend more on training their workers than their American counterparts, they also have many years of experience do so. German unions appoint members that sit on the board of most German corporations, a practice that would seem anathema in the United States where labor disputes are seen as adversarial and sometimes even hostile. Germans enjoy generous vacation allowances and maternity leave programs. This concept of seeing workers as an integral part of corporate life is known as the "social partnership.""

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