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A medium sized Yugoslavian manufacturer of electric power tools tries to enter the German market and experiences considerable difficulties due to a broad, but shallow product line. The choice of marketing channels cannot in itself be a substitute for an over-all product and marketing strategy. A potential solution may be to manufacture products for one of the big competitors under its brand name. The purpose of the case is to demonstrate the importance of an over-all corporate strategy as the basis for marketing and a marketing channels strategy. The case was prepared by Dr Mitja I. Tavcar, Vice President of Iskra Commerce and part time Associate Professor in the Faculty of Econmics and Business Administration, Maribor University, based on published sources and information given by Branko Suhadolnik, Export Manager, Iskra Power Tools Division, Kranj. Yugoslavia.