This summary deals with a German company planning to enter the US market. The company “Oettinger Brauerei GmbH” is engaged in the business of beer brewing. It is a well established brand on the German market with a rapidly growing market share. The company has discovered a competitive gap in brewing a brand beer and distributing it at a low price – they promote their products with the slogan “Germany’s price-worthiest brand beer”. The same strategy could be pursued on the US market, as there are already foreign beers (e.g. from Belgium, Netherlands, and from Germany), but those are relatively expensive. This is due to the fact that only upper scale brands from Europe have yet entered the American beer market. Furthermore, as the total percentage of beer brewed in Germany is declining, there is an upcoming need for German beer producers to search for new markets abroad.
To successfully transfer its strategy of cost leadership, Oettinger will have to produce its beer locally in the USA to save import fees and distribution costs. There are some issues that arise with this option concerning accounting, taxes, finance, and law – this summary will concentrate on certain aspects of law Oettinger will have to deal with.
Additionally, because the company is a rather small brewery considering its market capitalization, it has not the financial strength like for example the giant brewer Inbev. The legal side of entering this new market should include both economic and risk related aspects. This paper will therefore primarily deal with the concept of strict liability and organizational options. In general Oettinger can chose between setting up a new business in the USA, simply importing its products (which has already been excluded above), and producing in the US at another directly owned facility.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- The Legal Perspective
- The Concept of Strict Liability
- The Organizational Form
- Recommendation
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This executive summary examines the legal considerations for Oettinger Brauerei GmbH, a German brewery, as it plans to enter the US market. The primary objective is to analyze the legal environment in the USA, particularly focusing on strict liability laws and the most suitable organizational form for Oettinger to adopt. The summary explores the potential risks associated with strict liability and outlines strategies for mitigating them. Additionally, it examines the implications of different organizational structures on liability and ease of doing business.
- Strict Liability in the US Market
- Risk Assessment and Mitigation Strategies
- Organizational Structures and Liability
- Considerations for Consumer Preferences
- Competitive Advantages of Oettinger's Cost Leadership Strategy
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The chapter introduces Oettinger Brauerei GmbH, a German brewery seeking to enter the US market. It highlights Oettinger's cost leadership strategy and the potential for success in the American beer market. The chapter also emphasizes the importance of addressing legal considerations, particularly strict liability and organizational structures, for a smooth market entry.
- The Legal Perspective: This chapter delves into the concept of strict liability, a crucial aspect of American tort law. The summary explains how strict liability applies to product defects and the potential consequences for Oettinger, including potential asset seizure and the need for extensive warnings on products. The chapter also discusses defenses to product liability claims, such as assumption of risk and product misuse, that Oettinger could utilize.
- The Organizational Form: This chapter focuses on organizational structures available in the US market. It discusses the liability implications of different forms, such as sole proprietorships, partnerships, and corporations. The summary emphasizes the importance of choosing a structure that provides limited liability for Oettinger while facilitating business operations in the US.
Schlüsselwörter (Keywords)
This executive summary focuses on the legal environment for German companies entering the US market, particularly in the context of the beer brewing industry. Key themes include strict liability, product defects, assumption of risk, product misuse, organizational structures, limited liability, and cost leadership strategies. The text also highlights the importance of navigating consumer preferences and market regulations to achieve successful market entry.
- Citation du texte
- Erik Silge (Auteur), 2009, Legal Environment for businesses in the US market, Munich, GRIN Verlag, https://www.grin.com/document/129815
