Topic > American Brewery Entering the Austrian Beer Market

Summary For American brewers to succeed in entering the Austrian beer market, they must fully understand the cultural, economic, and political forces that control society and how they work. Austrian society and its culture are one of the oldest and most important societies in Europe. Although the country has become a highly industrialized and technologically advanced entity, Austria can present significant obstacles when it comes to doing business. The cultural forces in Austria appear to be centered on its value system. Austrians tend to be slow decision makers by American standards. Austrians are detail-oriented people and are cautious about risks. Austria has a unique, world-class education system that allows children to make choices regarding their education at a young age, which helps give Austria a highly skilled workforce. The economic forces in Austria provide both positive and negative aspects. Austria is a member of the European Union (EU) and is closely linked economically to Germany. Both Austria and Germany organize trade fairs which offer fantastic marketing opportunities. Austria is technologically advanced and has an efficient infrastructure which makes doing business there desirable. As a member of the EU, Austria switched to the euro as its currency. Giving up control of monetary policy causes uncertainty about currency stability. Political forces in Austria also contribute to the risks and rewards of doing business there. Austria's trade and business policies appear to be mostly favorable to the beer industry. However, Austria imposes a 20% value added tax (VAT) on alcohol, which can be seen as an unfavorable trade barrier. T...... middle of paper...... the problem would appear to be the current economic instability of some EU members which causes a drain on the entire economic structure of the EU and the euro. It is possible that EU member countries will suffer even if they are economically stable. Another concern is the web of regulations that can confuse any company trying to penetrate a market in the EU or one of its member countries. Legal assistance would be the best option. Conclusion There is a strong possibility that an American beer company can successfully penetrate the beer market in Austria and make profits in both the long and short term. It will require an intelligent decision on the entry method. The business aspect will be challenging in determining how to enter the market (e.g. distribution or starting a local brewery). Marketing will also be a key to the success of a commercial campaign..