Opportunities –
(a) Huge target population
(b) Spending capacity
(c) Increased awareness about the company products.
(d) favourable Government policies
(e) Stable environment
(f) Presence of tourists and other similar consumer groups.
(g) Leisure activity among locals
(h) Competent partners.
(i) Social and cultural aspects.
The Opportunities come from the demographical factors like GNP, per capita income, disposable income, composition of population ( Presence of young population which is more likely to be a customer), employment patterns, education level etc. More aware, well to do customers are more likely to be cutomers.
Another factor is the cultural aspects of society. Presence of an outdoor culture that promotes social unions very often, may lead to opportunity to bcome a part of social happenings for a company. The presence of outside gorups like tourists can also enhance the opportunities.
Political stability, favorable policies, taxes, lesser restrictions etc. faour the business as these factors directy affect profitability and assurance for future. In case of franchising or licensing, the competence of a local partner helps in growth of business as it knows the market and people well.
Threats
(a) Unstable business environment.
(b) Political issues and favour for local players. Barriers for entry and doing business
(c) Substitute products,
(d) Cultural issues in adopting to new products and absence of outdoor culture.
(e) Lesser spending capacity of people.
Threats come in the form of culture that has few social interactions and the people who don’t prefer to eat out. Such behavior may result in poor sales and less feasibility to operate. There may be substitute products, traditionally a part of the culture, making coffee and like products alien and difficult to adopt.
Another threat is the political unstability that affect the business through changing policies. The governments may also favour local players and impose entry barriers, trade restrictions and high taxes to discourage foreign players. Sometimes a hostile environment ( due to insurgency or high crime rate) may pose threat to the operations of business.
The demography is one of the crucial factors. Economic distress may refrain the people from spending on these small luxuries. Unemployment, poverty, lack of future security and absence of disposable income may affect the sales adversely.
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