Hungary for water as 94% of surface water is

Hungary has been known to have promising
researchers on scientific discipline mostly in physics, mathematics, chemistry
and engineering. Many scientists have received Nobel prizes and some have been
listed in the record for world’s collective contributors. It has 72% of
internet users as of 2012 and has been growing at a rate of 31.2% over the past
5 years. Internet speed and the online distributors are doing well in the
Hungarian market. This will help
paws distribute their products better through online distribution channels.  (Bandwidth Place , 2017)

Highest court of Hungary is located in the capital
Budapest. The Hungarian police and national taxation and customs are the two
major law enforcements of Hungary. The foreign investment act of 1988 provides
a guarantee to the foreign investors to fully protect and treat them equally
like them domestic investors. This allows the home country like Paws to bring
the free remit profit and investment capital to Nepal in the case that our
business is shutdown.  The law of
competition of 1996 makes sure the foreign investments are treated like the
domestic investments.

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Hungary is divided into three geographic regions: The
Transdanube, the Great Plains and the northern hills. Despite being small it is
rich in biodiversity. The major environmental problem faced by Hungary is air
and water pollution. The water in Danube is polluted through the numerous
industries and agriculture. The physical and chemical dilapidation process has
made the soil unfit for agricultural use. (Singh, 016)  (European Environment Agency,
2015).
Hungary is also highly dependent on neighboring countries for water as 94% of
surface water is from there. The government has imposed rules to protect their
water resources by charging for waste water discharge and setting the prices
for water high. They are also coming up with creative ideas to stop pollution
through recycling.

The buyers have high bargaining power as the market is
dominated by economy brands  like Pamax
and Boldog bulldog ltd. International brands like pedigree is also there but
they provide little to no nutrition to dogs. The pet owners in Hungary are more
concerned about nutrition and want a healthy product for their pets. Also, as
most brands are European or American the prices are high. We can provide dog
chew that are reasonably priced and have good quality.(hemant, 2014)

There is an increasing demand in dog food and not good
enough suppliers. The uniqueness in our product and accessibility to deliver
products through online distributors makes the supplier power high. There is an
increasing demand for pet food because of the Increase in the living standard
of the citizens of Hungary. The dog food sales are also expected to grow by 3% in
Hungary. This is an area that Paws can capture. (Anon., 2017)

The threat of substitution is high. Switching to another dog
food is relatively cost free. There are various economy products to choose from
which are made in Europe and convenience plays a great role in success of a
business. The online dog food market looks promising and might pose a threat of
switching products.

There is a limited threat to new entrants as the market
has been stable for a while and no new launches of mass- market are expected in
the market any time soon. Although the increasing trade with European union
does pose threat of a new premium product.

Rivalry is high between the competitors as pedigree and other
economy brands are all the same price level. This means that Paws has a huge
opportunity to enter into this relatively untapped marke

Paws dog chew
is already in huge demand by the US. We are aiming for the same level of
success with Hungary and the European market. Paws should take dog chew
directly to Hungary. It is better way than hiring consultancies or out
sourcing. This way paws can control quality and also know the market locally to
advertise the product accordingly. Also face to face interaction is preferred
in Hungary.

Language
should not be an issue as English is the common business language in Hungary.
The literacy rate being 991% also helps the Paws in this foreign market. The
market in Hungary is open to healthy and nutritious dog foods. Even the
existing dog food brands are placing heavy emphasis on advertising the healthy
aspects of their products. This gives paws an edge in the foreign market because
of its reasonable pricing and quality.

Cultures and
business plays an important role to make our product a success in a foreign
market. In Hungary a direct way of communication is preferred and a good sense
of humor is appreciated. This should be taken into consideration while making
advertisements for Paws. (Anon., 2017)

Hungary and
Nepal both are relationship based so it is essential for us to get to know each
other before doing business. Hungarians are punctual and have proper work ethic
which getting things done easy for Paws. Appointments and meetings should
always be made in advance and proper socializing with dinner and drinks is
necessary to make deals. Tempting and clear offers should be made as they are
known to be skilled in negotiating. Hungarians like to take their time and
engage into a business slowly. They are detail oriented and dealing with them
can be time consuming.

 Overall, despite there being many cultural
clashes tapping into the Hungarian market should not be an issue as there is no
language barrier and most of the culture change is positive