Analyzing International Competitors
Introduction
In new markets, the entrants face a variety of compounding factors that lead to competition from existing businesses as well as new companies setting up businesses as well. Sooey Dogs is setting up a business in Switzerland, and there is a need for understanding the hotdogs business in Switzerland and globally. Raising the awareness of competition enables a business to understand the competitive environment and how to create a value chain for competitive advantage in its line of business.
Analysis of potential competitors and their global business activities
The Hot Dog Faktory and Swiss Hotdog Company are the leading businesses in the hotdog business in Switzerland. With large factories across various towns, Hot Dog Faktory specializes in the production of grilled, steamed and garnished products. Swiss Hotdog Company has a chain of restaurants and hotdog joints where their customers can enjoy their favorite bites as per a tailored price menu, depending on the toppings. These two companies account for more than 65% of the hotdog business revenues in Switzerland ("The Swiss and European Food Industry", 2016). In addition, they sell their products to a range of food chains and restaurants, leveraging on their rich culture of grilling, garnishing and traditional steaming. Across Europe, the Hot Dog Faktory and Swiss Hotdog Company sell their freshly packed hotdogs in food joints where customers can order for specially packed takeaways ("The Swiss and European Food Industry", 2016).
Analysis of global business strategies that could create competitive advantages
Analysis of the two largest companies controlling the hotdog business in Switzerland reveals that they have heavily invested in value addition in their businesses. Understanding the hotdog customers is paramount in succeeding in this business. Granted, Sooeys Dogs needs to differentiate its markets so as to create value in its potential customers. In-house production of a wide of hotdogs is the starting and the winning point. With in-house, the quality, size, packing and other variables of the Sooeys Dogs brand can be controlled and monitored as it penetrates into the new markets (Simanis, Hart & Duke, 2008).
Provision of a wide range of hotdogs - use of garnishes such as ketchup, onions, cheese, chili, mayonnaise and other varieties, will attract a huge customer base as the main competitors have specialized in production of just but a few hotdog varieties. This should be accompanied by the appeal to health eating, especially as a result of healthy eating crazy. Offering vegetable-served hotdogs will increase the appeal of hotdogs, attracting vegetarians and healthy-eating fanatics. This could be coupled by a range of promotion activities so as to market the new hotdog business in Switzerland.
Evaluation of pricing plans
As Sooey Dogs gets into the Swiss market and tries to penetrate, market penetration strategy can be employed. With market penetration pricing strategy, Sooeys Dogs will lower the prices of its items listed in its food courts, restaurants and hotdog joints. The aim is to predate on the competitors by charging customers a lower price for the same product, effectively gaining some customers from its competitors (Simanis, Hart & Duke, 2008). Over time, the prices can be adjusted to the market prices, but only when Sooey Dogs has gained a loyal customer base.
Sooey Dogs can choose to use discriminatory pricing for the hotdogs. This approach will be built around the fact that Sooey Dogs could offer hotdogs with different toppings to different classes of clients (Simanis, Hart & Duke, 2008). At the moment, The Hot Dog Faktory and Swiss Hotdog Company are offering standardized prices, depending on the sizes of the hotdogs.
References
Simanis, E., Hart, S., & Duke, D. (2008). The base of the pyramid protocol: Beyond “basic needs” business strategies. Innovations: Technology, Governance, Globalization, 3(1), 57-84.
The Swiss and European Food Industry. (2016). Swissfoodnet.ch. Retrieved 17 April 2018, from http://www.swissfoodnet.ch/food-research-switzerland/swiss-european-food-industry.html