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  • Subject Name : General Management

How They Could Impact Shell Coop’s Entry in Switzerland?

With the intension of expanding in the country with low temperature and covered with snow so that clothing for people interested in hiking or extreme adventure activity can be a success, Switzerland was chosen to be the country's choice. Today Switzerland is considered to be a country that benefits from proximity to being economically strong nation against other developing countries like France, Italy, Germany. Providing good economic conditions, a relaxing law system, sound environmental law, stable political situation, and social factors, Switzerland is considered to be one of the best nations to do new business specially related to the snow industry. After conducting the PESTLE analysis, it was understood that Switzerland would be the best choice for the organization as the adventure activities like hiking, snowball activities are much higher here. Social factors have supported Shell Coop to enter Switzerland as 60% of the visitors have shown a positive response towards snowboarding, skiing and other activities. Shell Coop should consider Switzerland as an ideal market as they are directly responsible to contribute towards the GDP of the country, as the snow market has shown a positive improvement in this country. Economic factors are not complex here as Switzerland meets its commitment under WTO and bilateral agreement which will make a desirable trade for the Shell Coop company (Reynard, 2020). The GDP of the country is improving by 5% to 10% every year and the government is supportive of new business ideas (especially which can support tourism) while considering the environmental factors, it was understood that the climate of Switzerland is changing which has impacted the snow market here.

It was reported that climate change has reduced snowfall in Switzerland which may pose a threat to Shell Coop in the upcoming years. Additionally, it was also reported that Switzerland has been one of the favourite destination choices for the tourist as the country is covered with Snow all the months across the year (Bieger and Laesser, 2002). Shell Coop will be least affected by the legal factors as Switzerland is known to have a great reputation for an independent judiciary. Nationals or foreigners are protected by law and there is no infringement followed in the country.

The country’s legal system for new market entrant companies is easy, flexible, and relaxing which can help them to do good business in the country (Reynard, 2020). Switzerland's Government is taking special efforts to promote companies trying to promote snowboard activity in the country as the global snowboard market is set to reach US 239.01 billion by 2020 out of which Switzerland contributes 55% (Scott et.al, 2020). Also, any new entrant in Switzerland that invests 50% of the fund assets in the market can receive tax breaks from the local government (Willi et.al, 2020)

Thus it was understood that being a specialized clothing brand for people interested in outdoor activities, Shell Coop company would be largely benefited by kick-starting its business in Switzerland. PESTLE factors would support Shell Coop’s entry into the snowboarding market.

Reference for Mountain Tourism and Snow Management

Bieger, T., and Laesser, C. 2002. Market segmentation by motivation: The case of Switzerland. Journal of Travel research41(1), pp.68-76.

Scott, D., Steiger, R., Knowles, N., and Fang, Y. 2020. Regional ski tourism risk to climate change: An inter-comparison of Eastern Canada and US Northeast markets. Journal of Sustainable Tourism28(4), pp. 568-586.

Willi, Y., Nischik, G., Braunschweiger, D., and Pütz, M. 2020. Responding to the COVID‐19 Crisis: Transformative Governance in Switzerland. Tijdschrift voor economische en sociale geografie111(3), pp. 302-317.

Reynard, E. 2020. Mountain Tourism and Water and Snow Management in Climate Change Context. Journal of Alpine Research| Revue de géographie alpine, (108-1).

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