Paws as it is still hot. Then the

 

Paws is a company in Nepal that produces dog chew. The
market of paws is only limitd to Nepal and India. There are many varieties of
dog chew made differently around the world. Paws only make its dog chew from a
milky candy called churpi in Nepal.

Churpi, a famous Nepali candy is made with milk of cows,
yak or goat. It is a well known candy to countries like the US, Canada and Japan
like Nepali paun. Research shows that the US demands 300,000 kg of churpi per
annum among the total of 6,000,000 kg of churpi.

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The main ingredient in making churpi is milk
and that is collected from the farmers in the Himalayas who make sure we have
the quality of milk to make our product. The milk collected by them is now
boiled for a few hours before pouring it into a centrifuge even as it is still
hot. Then the fat free milk is separated to prepare dog chew while the leftover
is used to make ghee. Then salt and lime is added as coagulates to the milk
before separating it to milk solids. Then after the dog chew is formed the salt
and lime are removed. This is manufacturing process is done at our factory in
Lalitpur, Nepal. (Anon., n.d.)

Dog chews from paws are a safe, gluten free
product without added preservatives and a perfect chew toy and snack for dogs.
They are available in various sizes and shapes. We provide these chews in the
form of slabs, 30 grams for small sized dogs, 70 grams for medium sized dogs
and 140 grams for big sized dogs. It has the perfect shape and texture which
makes the dog enjoy it and also last longer. Apart from this paws offer a small
sized dog chew shaped like nuggets as a treat for dogs.  This different sized makes our product easy
for the pets to digest. As the dog chew is organic it is very healthy and
nutritious. It contains 52% protein, 33% carbohydrate and less than 1% of fat.

Dog chew is a unique product for both Nepal
and the foreign market. The major competitors of dog chew are Himalayan Dog
Chew, Yeti Dog Chew and MLA Inc.

 

Introduction to Hungary

Hungary is a landlocked country in central Europe and it
is a part of the European Union. The country is generally flat, with low
mountains in the north. It is an open economy and its capital is Budapest.

·        
Population- 10
million

·        
Population as % of
total EU- 1.9 % (2016)

Why Paws choose Hungary?

 Here are some reasons why I
choose Hungary as an emerging market for Paws:

1.   
The
huge population of dogs of 1800,000 is what attracted paws to the Hungary
market.

2.   
Recent
economic growth and more disposable income have the people spending more on dogs.

3.   
The
economic growth in Hungary is mostly because of wholesale and retail trade with
it contributing 27.4% in economic growth as of 2015.

4.   
English
is the major language of business in Hungary.

5.   
Trade
is a major contributor to the GDP of the economy and 171 % of the total GDP is
imports and exports.

6.   
Entering
the Hungary market will allow paws to easily reach all the countries in the
European Union.

7.   
The
countries skilled labor and well as increasing businesses has made it a more
attractive place to do business in.

8.   
Hungary
is a tourist destination and this will help our product to have a global reach.

9.   
The government encourages trade and aids free trade
and innovative businesses.

10. People’s
spending has increased in Hungary as of January 2016 as the government has
lowered the income tax rate from 16% to 15%.

11.  The government of Hungary has laws that
regulate balance between the domestic and foreign industries.

 

 

 

PESTEL
ANALYSIS

Hungary is republican country with
democracy. Now more than ever the public of Hungary is being pro-independence. (GOV.UK, 2017) The government of Hungary is dominated
by conservative Fidesz with a near supermajority. Hungary is 54th
out of 200 countries on the index of political stability this makes going into
business in Hungary less risky.  (the Global Economy.com, 2017) The future political
stability also seems safe as the long term political risk has been calculated
to have 3 index points as of 2016 where 1 is low risk and 7 is high. (Singh, 016)

Hungary has a GDP of USD 118.0 billion.
The Inflation rate as of 2017 was 1.9% which is good for the economy. The unemployment
rate has decreased from 6% to 5.8% in 2017. About 67% of the age group 15-64 is
employed in Hungary. The disposable incomes of individuals have increased in
Hungary because of the recent economic development. Although there has been
seen a gap in the bottom quintile and top quintile. The top quintile income
rate has seen to be increasing more as these people are the target of Paws.
Apart from this Hungary is also ranked the 49th in the world in
terms of purchasing power parity. Household consumption takes about 50% of the
total GDP in Hungary and dog food falls within it. (Singh, 016)

It has about 10 million residents on an
area of 93030 sq km. Hungary’s populations mostly comprise of Roman Catholic
and the rest of the religions are Calvinist, Lutheran, Jewish, Baptist,
Adventist, Pentecostal and Unitarian. The literally rate is a whopping 99.1%
which is good for an organic and ethical company like ours. Face to face
business decisions are preferred and valued in Hungary. Hungary has a very hierarchical
business structure and likes to do business deals formally.