Hungary Should Be The New Market for The Paws Company

Paws is a company in Nepal that produces dog chew. The market of paws is only limited 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 the milk of cows, yak or goat. It is a well-known candy to countries like the US, Canada and Japan like Nepali pain. Research shows that the US demands 300,000 kg of churpi per annum among the total of 6,000,000 kg of churpi. 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 are 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 the 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.

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 the balance between the domestic and foreign industries.

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 the 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 literal rate is a whopping 99.1% which is good for an organic and ethical company like ours. Face to face business decisions is preferred and valued in Hungary. Hungary has a very hierarchical business structure and likes to do business deals formally.