Penetrating the Swiss Market 6

Penetrating the Swiss Market.

Angel Dogs is a small hot dog company that prides itself on quality and customer service. Selling Sabrett hot dogs shipped in from New York with Sabretts famous Red Onion Sauce and homemade chili created by “Shrimp and Stuff Restaurant in Galveston Texas has become known in the local Galveston Texas and Clear Lake Texas area. Now Angel Dogs is investigating the possibilities of expanding to an overseas market in Switzerland.

According to a current study by transparency market research, the sausage and hot dog market are approximated to be worth roughly US$80.4 Billion by 2021 (Research, 2016, August 08). In light of the above knowledge, it is prudent to note that U.S. Hotdog Company, based in Texas, will make advances towards securing a slot in the very welcoming market. The Angel Dogs was established in 2015. The company has since earned a name for itself in the local area following incredible reviews from ninety percent of its customers. Imperative to note is the fact that the company may not have covered much ground domestically, but owing to the smaller market share amidst global competition, there are better chances of thriving abroad than locally. Notably, the company generates revenues less than $55K on an annual basis with approximately three employees.

The growth metrics of any business tend to lie by income generated and by extension the amounts of profits that the company gains (Viguerie et al. 2008). Notably, for any food business, the number of customers determine the level of revenues the business makes and also determines to what extent the company makes profits. Over the years, the Swiss Hotdog company has received a commendation regarding the high-quality hot dogs that it sells to its customers. Having been initiated as a family business, owned by Dave A., the company has enjoyed tremendous growth from customers from and tourist all over the world. Growth opportunity is duly expected to owe the firm has barely any substantial significance within the country. As such, the company will seek to forge a strategy into a rather welcoming market that will greatly appreciate the quality levels that the American Hotdog company has to offer.

Country of Choice. Switzerland

Trends derived from facts regarding the Swiss food cart market insinuate that the sales of sandwiches such as hot dogs have continued strong all over Switzerland. Notably, sales remained stable at the prevalent retail levels including supermarkets and consequently, airports, restaurants and even football stadiums and within each Cantons family square as the Swiss perform Saturday shopping events. Driving the ideology that hot dogs are protein infested has cornered the US citizens to think of the best when it comes to Hotdog products. Despite the fact that the hot dog is a standard entree across the country, it is important to consider the fact that consumption does fluctuate on a region by region basis. Conferring to sales data for 2016, the occupants of the New York spent more coinage on hot dogs in the retail stores, amounting to approximately $101.7 million, than any other marketplace in the nation. Citizens of Los Angeles spent $79.3 million on hot dogs coming in second place (Research, 2016, August 08).

The rising demand for low-calorie as well as organic foodstuffs is a pattern that is gaining significant prominence all over the world. The world now focused on foods that are less likely to lead to lifestyle diseases and conditions including the likes of obesity, diabetes, and high blood pressure. As such, the demand for organic versions of hot dogs is on the rise. According to research carried out by Transparency Market Research, this trend has been identified to be immeasurably beneficial for players in this particular sector. The United States has hence created an enabling environment for the restaurant business creating an overly attractive location for the setting up of such a business. Therefore, the American Hotdog Company will set base particularly in Lucerne Sz. A place where the customer base has proven to be reliable and accurately dependable. As such, the growth of this company is almost guaranteed.

Mode of Entry: Licensing and Joint Venture

Penetrating into the Switzerland’s market will not be a walk in the park. Angel Dogs at this time not substantially established. Thus, the company will seek to become a joint venture with a partner, Pat Murry. Pat is an influential business person and musician in Lucerne Sz. Pat M. with a substantial following all around Switzerland and neighboring countries. The partnership will foster the American Hotdog Company regarding coming up a sophisticated strategic alliance for supply and demand of the hot dogs sold from an old fashion hot dog cart.

Partnering will see to it that Angel Dogs is recognized and appreciated. Fundamental to the core needs of the ngel Dogs with the goal of growth in the international market would be brand recognition (Longenecker, 2009). Tying itself to an already established brand within the region of its projected growth is not only wise but necessary. Notably, Angel Dogs has no presence in Switzerland and is targeting a market that is larger than it has ever handled. It will need the guidance and financial support of from new found partner to enable it to thrive in the entirely new and globally competitive environment.

The joint venture/ partnering mode of entry will enable the American Hotdog Company to learn the basics of operation and marketing in Switzerland. The ability to thrive in business in a new market will require understanding the demographics of the new market, the projected cost-benefit analysis as well as the calculation of the addressable market. Notably, it is imperative that the American Hotdog Company gets to learn the customs and professional etiquette of the global market in its bid to thrive internationally (Longenecker, 2009). Also, Angel Dogs will over time become proficient with the country’s laws governing the restaurant business in Switzerland. Most importantly, I had lived in Lucerne Sz., about three years. Having held a work permit supporting the Swiss F/A18 program as a U.S. liaison for between the U.S. and the Swiss Government. Having dealt with the Swiss Government agencies Arrmassuise and RUAG, as well as the American Embassy, has afforded me the insight the and an in-depth understanding of the Swiss professional etiquette, values and behavior patterns, as an early point I had made that is imperative for success to enter the food cart market in Switzerland. Knowing the that the Swiss are always on the go, especially walking to as many places as they can or riding a bike during the fair climate days, a quick stop by a food vendor on the street for a quick bite is always more attractive than at a restaurant for a long sit-down meal. As the Swiss enjoy having the larger meals in the evening with their entire family. Additionally, when at work the most Swiss companies have time clocks, to track when forty hours of work is accomplished, not tardiness of the Swiss employee. The average Swiss person holds a high value on spending more time at home than at work and concurs with this set-up, knowing that location is crucial for the American Hot Dog stand, so establishing a position by the Lucerne Bonhoff (train station). Currently, McDonald’s showed an overall 36% value share at GBO level. Sussie McDonalds’ Franchises increased by 14% in 2016. (“Fast Food in Switzerland,” n.d.). The influences for this increase stems from convenience, the variety of the menu and cost, being that the Swiss have hectic schedules and the rising number of single parent households on the rise in Switzerland. An average price of a sandwich at Migros or other quick lunch places is about 8 CHF to 15 CHF about $8.40 to $15.43; the tax included in the cost. A foot-long hot dog with toppings would be priced 6 CHF about $6.17, and the average hot dog would sell for the price of two for 5 CHF or $5.14. For Angel Dogs, able to sell a lower cost and providing a taste of the American Hot Dog coupled with the consumer being brought in from the nostalgia of an old fashioned hot dog cart is almost promised success.


Longenecker, J. G. (2009). Small business management: Launching and growing new ventures. Toronto: Nelson Education.

· Research, T. M. (2016, August 08). Hot Dogs and Sausages Market is Estimated to be Worth US$80.4 Billion by 2021; Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2021. Retrieved August 14, 2017, from

· Viguerie, P., Smit, S., & Baghai, M. (2008). The granularity of growth: How to identify the sources of growth and drive enduring company performance. Hoboken, N.J: John Wiley & Sons.

· Fast Food in Switzerland. (n.d.). Retrieved from

Please understand the flow with the above work. below is to be researched and written about, the country is Switzerland as stated above

Part II

Now that you have had your Project company/idea approved by your professor, it is time to write the second part of the project, which builds on Project Part 1. Using the same company your chose for Project Part I (the company that is proposing an expansion opportunity overseas), conduct research on the proposed “overseas” country.

Specifically focus on the culture and cultural exchange of the country.

For the culture, review the web site or similar resources to compare the cultural differences between the US and the company in your project. Identify the cultural differences and consider the cultural exchange.

In addition, research and choose the best distributions method: Product/Market, Pricing, and Positioning.

To Review:  Write a 1000 word, APA style paper entitled “Strategic Audit”

In your paper Identify the following:

· Cultural differences

· Cultural exchange

· Distribution Methods

· Product/Market

· Pricing

· Positioning

In your paper include a title sheet and 2-3 references.  Only one reference may be found on the internet.  The other references must be found in the Grantham University online library.  Only the body of the paper will count toward the word requirement.  Please see rubric below.