For many companies from Eastern Europe, it is a long-cherished dream: Expanding to Germany, Austria and Switzerland and setting up a subsidiary there. But why are so many companies turning to Western Europe and what is behind the desire to do business in the DACH region? We will show you why you too should establish a foreign branch in the German-speaking region!
Increase profits
Germany, Austria and Switzerland are economically far developed. This can be best shown with the gross domestic product (GDP) per inhabitant in purchasing power standards (PPS). This indicator shows the economic output of a country, calculated on a per capita basis and adjusted for different price levels. In simple terms, it indicates how "prosperous" a country and its citizens are. According to data from the EU Commission, Germany, Austria and Switzerland achieved an average of EUR 43,262 in this indicator in 2021, putting them among the leaders in Europe and the world. A comparison with some Eastern European countries such as Romania (EUR 23,622), Serbia (EUR 14,326) or Albania (EUR 10,439) shows how striking the wealth gap is. Thus, we can clearly see that despite the geographical proximity, the German-speaking region is much more solvent, prosperous and developed than Eastern Europe.
For companies from economically weaker countries, this difference represents a unique opportunity to raise themselves to a completely different financial level. Compared to domestic companies based in German-speaking countries, they often have unbeatable competitive advantages. For example, depending on the industry, they can most likely manufacture certain products at much lower costs and are more flexible and adaptive due to their slimmer corporate structure. This means that they can identify new trends faster and adapt to changes in consumer behavior more quickly. Especially in the area of public tenders, i.e. orders from the government, countless of our Eastern European customers can effectively use this advantage.
Tenders: Lucrative and transparent
Many of our clients have had bad experiences with public tenders in Eastern European countries. As a consulting company, we have heard many times about unprofessional and unreliable procedures, repeated changes and often illegal arrangements, and we have also experienced them ourselves. However, the mistake that affected companies make far too often is to completely close their minds to the subject of tenders for an unlimited period of time and to categorically exclude participation in them in advance. This is a big mistake especially in this respect, because public tenders differ between Eastern and Western Europe at least as much as the different economic levels, which we have presented to you in our first section. And it is exactly these different levels that can become your greatest advantage when it comes to lucrative public contracts..
Of course, public tenders in Austria, Germany and Switzerland are not perfect either. Nevertheless, we can say with the best conscience that they are worlds better than those in Eastern Europe. Clearly defined requirements, reliable deadlines, and transparent and rapid procurement are the norm. Less complicated procedures thus lead to less administrative work for you. If you place a particular focus on the eco-friendliness or quality of your products, your chances of being awarded a contract are also likely to be significantly greater than in your home country. Factors like these often play a significant role in the decision to award a contract. Conversely, you as a bidder are also expected to work precisely, correctly and reliably, which you should absolutely fulfill.
Would you like to learn how to participate in tenders in Germany and Austria? Then take a look at our blog article, which shows you step by step what you need to consider in order to be successful in public tenders in German-speaking countries.
Ideal environment
The business environment in Germany, Austria and Switzerland could hardly be better, also apart from the economic strength. Legal certainty is high, prevailing corruption is low, and the workforce is highly qualified. Strong payment discipline and low default probabilities complete the overall picture. For you, these factors represent optimal conditions to venture an international expansion. In addition to increasing sales and profits, you can also benefit from strong branding, rising awareness, an expanded network and thus better positions in negotiations..
So you see: Expanding to Germany, Austria and Switzerland offers you countless as well as unique advantages to broaden your business activities. Benefit from the prosperity of German-speaking countries, enjoy lucrative and reliable orders and discover an environment in which your business will thrive.
We from AV-LEAD help you to expand to Germany, Austria and Switzerland. In all these countries we are represented by highly qualified and local experts. They take care of your expansion individually and make sure that your business runs successfully in the new market. Market analyses, strategy development, consulting, translations, mediation of contacts, personnel and orders as well as the administration of the actual expansion itself are only some of the services we provide for you. This allows you to concentrate on your business in your home market and benefit from a successful subsidiary in the German-speaking region. Learn more about our expansion services or contact us. We look forward to hearing from you!
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