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You will use your chosen country (from the Discussions) for this Assignment. In addition to the country, you will reference the shoe manufacturing firm (introduced in the Discussions).
My chosen country is SWITZERLAND
Write a four to six (4-6) page paper in which you: I prefer 4 pages i.e. 1100 words
  1. Identify two (2) forms of market segmentation for your shoes, and support your choices. Then, identify two (2) target markets for each segment, and explain those choices. Note: A market segment (generally) is the group(s) the firm wants to market to; while the target market(s) is the specific market (e.g., city) that the segment(s) are located in.
  2. Give examples of four (4) actionable goals for your business as you embark on your mission to import shoes into your chosen country. Describe why each goal is important to the firm.
  3. Select the global product marketing program that you feel best suits your firm as a strategic alternative in your chosen country. Provide a rationale to support why you chose this program.
  4. Choose the global pricing policy that will best suit your firm and selected country. Support your decision for choosing such a policy.
  5. Choose the marketing channel alternative that will best suit your firm and selected country. Describe the function of each channel member.
  6. Describe the sales promotions that will be used entice both consumers and trade channel partners.
  7. Determine whether the firm will use salespeople or sales agents to promote and sell your products in the chosen country.
  8. Use at least three (3) quality academic resources for in-text citations in this assignment. Note that Wikipedia and similar type websites do not qualify as academic sources.
  9. Format your assignment according to the following formatting requirements:
    1. Typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
    2. Include a cover page containing the title of the assignment, the studentâ??s name, the professorâ??s name, the course title, and the date. The cover page is not included in the required page length.
    3. Include a reference page. Citations and references must follow APA format. The reference page is not included in the required page length.

BUSINESS IN SWITZERLAND

 

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Business in Switzerland

 

International Marketing

 


 

BUSINESS IN SWITZERLAND

 

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Socio-economic and political sectors of Switzerland

 

The economy of Switzerland has a high level of flexibility, as well as, institutional

 

strengths, including protecting property rights. Besides that, it does not tolerate corruption at any

 

level of the country. It has an independent judiciary that does not have any outside interference

 

(Steinberg, 2014). The economic freedom measure of the country?s? economy shows that it has

 

81 points (Steinberg, 2014). That means that it has a high level of freedom in its economy. It is

 

also more open to global trade than some of its neighbors. According to CIA (2016), the Gross

 

Domestic Product (GDP) of Switzerland grew from $469.4 billion in 2013 to $478.3 billion in

 

2014, and finally to 482.3 billion in 2015. Economists predict a further increase. The main

 

composition of the GDP of the state is the exportation of goods and services which account for

 

56.2% of the GDP while household consumption accounts for 54.4% (CIA, 2016).

 

Services have the highest composition of the country?s economy, accounting for 72.6% of

 

the total of the economy (CIA, 2016). On the other hand, the industry, which the manufacturing

 

firm will be a part of, is 26.7%. Agriculture accounts only for 0.8% (CIA, 2016). It is imperative

 

to note that Switzerland is very protective of its agricultural sector. Hence, there are protectionist

 

policies in the industry. The primary industries are insurance, banking, tourism, precision

 

instruments, textiles, watches, chemicals, and machinery. The main agricultural products are

 

eggs, meat, vegetables, fruits, and grains. The main ethnic group in Switzerland is German,

 

which accounts for 65% of the total populace. Then, there are the French (18%), Italians (10%),

 

Romans (1%), and others (6%) (CIA, 2016).

 


 

BUSINESS IN SWITZERLAND

 

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The Transparency International?s Corruption Perception Index of 2015 ranks

 

Switzerland?s government fifth out of 175 countries in the world (Steinberg, 2014). Meaning,

 

there is no corruption in the Swizz Government. Bankruptcy and commercial laws have

 

consistency in the application. In another school of thought, taxation is burdensome at the

 

cantonal level. However, at the federal level, it is not so (Valarché, 2012). The federal income tax

 

is 11.5%, while the tax rate may be as high as 40%, depending on the income level of

 

organizations and individuals (Knoepfel, 2012). However, government spending is minimal in

 

comparison to the GDP. It is only 33.5% of the same (Knoepfel, 2012). One reason why the

 

economy of Switzerland is flourishing the way it is because it has a 0% average rate of tariff. In

 

the same school of thought, it is a member of the European Trade Association.

 

However, due to its protectionism of its agricultural sector, there are several non-tariff

 

barriers for agricultural imports. There is Foreign Direct Investment (FDI). In fact, under law,

 

domestic and foreign investors are equal and subject to similar laws, regulations, and policies.

 

The CIA (2016) gives data showing that Foreign Direct Investments (FDI) totaled $1.464 trillion

 

in 2014, rising to $1.487 trillion in 2015. Therefore, in commencing operation, the shoe form

 

will not face many hurdles. Since it is subject to few regulatory requirements, the likelihood of

 

success is high. Besides that, Knoepfel (2012) mentions that the country has a financial sector

 

that is well developed. It has several reliable financing instruments inclusive of loans and credit,

 

available for both foreign and domestic investments. However, there may arise challenges in the

 

external environment. Nonetheless, the banking system has a solid capital base. Financing

 

companies is not a problem in the country.

 


 

BUSINESS IN SWITZERLAND

 

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Furthermore, the total population, as per 2015 estimates, was 8,121,830. The largest

 

section of the population is individuals aged between 25-54 years old, who consist of 43.67% of

 

the total population. On the other hand, children of between 0 and 15 years old consist of 15.09%

 

(CIA, 2016). The population growth rate is 0.71% (CIA, 2016). Relatively, the labor force of the

 

state is 5.097 million people (CIA, 2016). The biggest employer is the service industry, which

 

employs 73.2% of the total workforce. On the other hand, the industry, which the shoe company

 

will be a part of, is responsible for the employment of 23.4% of the force. Therefore, it is evident

 

that the form will have readily available labor. The skill level of the employment sector is high,

 

with most employees having a minimal education level of high education (college and university

 

level). Also, they have the experience that the organization will need. The reason being that, the

 

country has fifty-eight shoe companies already in operation. However, the unemployment rate is

 

3.3% by 2015 data, a rise from 3.2% in 2014 (CIA, 2016).

 

The Position of the Shoe Firm in Switzerland

 

There are fifty-eight shoe forms in operation in the country (Valarché, 2012). Evidently,

 

there are many competitors. However, the target market is the high-end clientele. Taking this into

 

consideration, there are three primary competitors. The first one is the Fretz Men Footwear. It is

 

the largest shoe manufacturing company in the country, focusing solely on men?s shoes. The

 

main manufacturing unit is Fahrwangen. It produces millions of shoes for men on an annual

 

basis, employing hundreds of thousands of employees.

 

The second one is Bata Shoes which manufactures for both sexes, and similar to the Fretz

 

Men Footwear, has solid establishments and several branches. Then there is the Rieker Shoes.

 

Similar to Bata Shoes, it provides qualitative shoes for high-end customers in the European

 


 

BUSINESS IN SWITZERLAND

 

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region. Both companies are well established with several branches. One should note that Bata is

 

a Multinational Corporation (MNC). Rieker and Fretz remain regional organizations, supplying

 

quality shoes to consumers in Switzerland and the greater European region. The company

 

beginning operation will not be the great challenge.

 

The challenge will be establishing a market in the highly competitive environment.

 

Having identified the three primary competitors, there will be a market analysis, which will

 

reveal further useful and reliable information for the grounding of the shoe firm. Contrary to

 

Fretz, but similar to Bata and Rieker, it will have shoes for both sexes. However, Bata primary

 

focuses on children?s shoes, which will not be a focus for the firm. The firm seeks to establish a

 

wide market base for all ages and genders. By doing that, it will have the sections of the market

 

currently unfilled with the existing shoe companies. Nonetheless, the focus will be high-end,

 

separating g it from the majority of the rest.

 

Some factors will affect the position of the organization in Switzerland. The discussion

 

establishes that most economic factors are positive. Also, the current state is stable, with the

 

capability of withstanding any economic shocks that may arise. However, there are other issues

 

such as the inflation rate, which is currently -1.1% (CIA, 2016). Although it will not have

 

significance, it is imperative to consider it. Another issue will be the rate of taxation which is

 

currently 325%. Notably, the country has high tax rates. That will hinder business growth. To

 

counter this, the country has a high Purchasing Power parity at $58,600 in the current au courant

 

environment. However, it is a decline for 2014 which recorded $58,800 (CIA, 2016). In fact,

 

economists predict that there will be a further decrease in the same.

 


 

BUSINESS IN SWITZERLAND

 

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In summary, Switzerland is a strong economy to invest the shoe firm in, taking into

 

consideration the political stability, protection of property rights, as well as, the open policies

 

regarding FDI. Its currency is also stable, with a relatively high GDP that is continuously

 

growing. However, the high taxation and the high level of competition in the shoe manufacturing

 

industry are likely to be a challenge. Nevertheless, there are available solutions such as tapping

 

on in the gap that the three biggest competitors (Fretz, Bata, and Fricker) left. That is

 

manufacturing shoes for both gender and all ages, maximizing the market demands. By doing

 

this, the sales will go up, and the taxes will not be a problem.

 

Nonetheless, it is significant to point out that the country has a zero tariff. Thus, exports

 

to other European nations are relatively cheap and easy. Additionally, being a member of the

 

European Free Trade Association grants the country access to all European markets without

 

significant barriers. The shoe company will use the policies to gain access not only to

 

Switzerland states but also to the regional markets including Germany and Italy, as well as the

 

United Kingdom (UK).

 


 

BUSINESS IN SWITZERLAND

 

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References

 

CIA. (2016). The World Factbook ? Central Intelligence Agency. Retrieved from

 

https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html

 

Knoepfel, P. (2012). Switzerland. Policies, 17(4), 175-197. doi:10.1007/978-3-642-60507-9_9

 

Steinberg, J. (2014). Politics. Why Switzerland?, 12(2014), 73-128.

 

doi:10.1017/cbo9781107050419.005

 

Valarché, J. (2012). The Economic Development of Switzerland. Backward Areas in Advanced

 

Countries, 39(14), 162-170. doi:10.1007/978-1-349-15315-2_8

 


 

 







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