A slow climb of business creation in Germany

 

Compared with other countries (e.g., the USA, Japan), Germany does not show a positive attitude towards starting a business. There is a series of hurdles that kept Germany’s newly minted entrepreneurs from expanding their business. Although one bank has said that a new start-up is founded every 20 hours in Berlin, there are several limitations that hold back start-up’s steps. It is a big problem about lack of finance. Small companies can only get puny financial support from angel investors and venture capital. It worth noting that Germany has as many venture capital investments as America, but the average investment in Germany is far less than America.

Fear of failure is another problem. It is a sign of failure if entrepreneurs end with bankruptcy, while it is seen as a positive thing in the USA. Germany does not have innovative problem. It has two deficits: one is that the slow increase in IPOs, which cannot create billionaires, mere millionaires. The other is the absence of standard-setting giants like Facebook, which serve as schools and customers for newer ventures. Germany will be more competitive in business by making its market more flexible and open.

Article: http://www.economist.com/news/business/21587209-vigorous-start-up-scene-has-yet-produce-its-first-big-breakthrough-slow-climb

Picture:http://www.berlincitytours.com/blog/2011/06/visiting-berlin/

Apple-the most valuable brand

 

According to the latest data, Apple overtakes Coca Cola as world’s valuable brand. Its brand value increased 28 percent, reaching at $98.3 billion. Meanwhile, the Coca Cola Company slipped from the top spot to third place with $79.2 billion. Brands value, which evaluated by financial performance, is intangible. Technology brands listed on the top are the ones concerned with “finding real problems, solving them, and then repeating the process.”

 

Brand value is priceless. The CEO of Coca Cola argued that even though factories worldwide were destroyed, the Coca Cola could grow as a successful company as large as the current scale. Brand value can make a tremendous contribution to the total assets. Apple led the innovative smartphones’ trend and met consumers’ demand. Good reputation is the basis of the brand value. Nowadays, there are numerous Apple fans buying the newest iPhone as soon as it on sale, regardless of whether they need to change their smartphones or not. It is the magic of the brand value.

Article:http://memeburn.com/2013/09/apple-overtakes-coca-cola-is-worlds-most-valuable-brand/

Picture:http://viewallpaper.com/apple-wallpaper-hd-image.html

Direct business model of Amway

Amway, which combines direct selling with a multi-level marketing strategy, is a successful example of direct business model. Without the supply chain process of distribution, independent business owners (IBO) sell products directly to potential customers. Everyone can become IBO and has the privilege to buy all products with discounted price. Therefore, Amway mainly sell products online rather than through physical stores. This strategy saves the cost of setting up warehouses and cuts middlemen. It guarantees consumers buying products with lower price compared with other brands.

In addition, the direct business model can build a bridge between manufacturers and customers. Amway sells products to costumers face to face; therefore, it provides an opportunity for Amway to realize consumer’s thoughts and track their feedbacks. That is to say, Amway can get immediate information and adjust their selling strategies.

However, the direct business is not adaptable for each product. Retails cannot completely be replaced. These two sales models generate mutual benefits together.

Articlehttp://www.amway.com/about-amway

http://web.archive.org/web/20080222222509/http://www.thetimes100.co.uk/case-study–meeting-global-responsibilities-by-caring-for-communities–11-172-2.php

Picture:http://www.empowernetwork.com/nickempowers/blog/is-amway-a-scam/