The Freitag enterprise is now a booming success, selling bags from 350 locations across the world in Berlin, Cologne, Davos, New York, Hamburg, and Zurich (FREITAG, 2011). They also have an online shop, which adds to their revenue massively. The factory in which these bags are made is situated in Switzerland, near the cross-city highway, which was part of the initial inspiration for the first bag in 1993. This brand has become well known and loved in several locations across the world, especially Japan and England, all in a span of just a few years. The main headquarters is in Zurich, in the country to which it not only belongs but also one with one of its highest number of consumers. Like every business, Freitag has had its setbacks and shocks during periods of recession. The solution it chose to such problems was diversification and expansion in geographical markets, rather than reducing the existing operations. For such expansion, the board of directors is currently searching for the right locations. As a Freitag employee, I would like to suggest the Brazilian market to them. There would be several benefits of entering this market, of example the high population and further expected growth rate, the free market economy, their exchange rate, highly developed telecom sector, and finally, Brazil’s elevated purchasing power parity.
Initially, Freitag will capture 8 to 9 percent of the market, a goal that it plans to achieve by the time their second year-ends. After this is achieved, it will move on to establishing itself as a fashion brand. The cities it will initially be introducing its product to will be the large cities of Brazil, for example Brasilia, Sao Paulo, Salvador, Rio de Janerio, Manaus, Curitiba, Belo Horizonte and Rio de Janerio. It will offer these new customers a retail price of 100 Brazilian real, and will present its product as being innovative, refreshing, and tailored according to the specifications