Juan Valdez Cafe: Competitive Risk Assessment
Competitive Risk Assessment
The biggest competitor in the Colombian coffee industry is Juan Valdez Café. They are very committed and active in the coffee industry. They have 238 Juan Valdez coffee shops, 135 of them are in Colombia alone. The other 35 are in other countries such as Chile, Costa Rica, Ecuador, El Salvador and Panama. The Juan Valdez Cafe Company had developed efficient and effective processes in growing and harvesting the finest Colombian coffee beans for their brand.
There are two major barriers that we would have to understand and overcome in order to effectively compete with the Juan Valdez Cafe Company. The first barrier would be language. We would need to hire an interpreter to assist us when interacting with the locals. The interpreter would also assist us with purchasing land, supplies, and equipment needed for our company to succeed.
The other barrier would have to be the weather. Colombia is situated in the path of the El Nino and La Nina weather patterns and crops are adversely affected in some locations. There is no real solution to that barrier.
Taxation and Double Taxation Risks
Colombia has had two double taxation treaties in the past, one with Spain and the other with Chile. The double taxation with these two countries is no longer in existence. The only taxes businesses are responsible for is the income of the company in which the company has residence established by permanent residence and gains from transfer of stocks.
Market Risks (four P’s)
The four P’s of marketing are product, place, price, and promotion. The products are the goods and or services the business provides for a target market. Things to consider when developing any product are the quality, design, features, packaging, and customer service. In our situation our product is coffee.
The place refers to distribution, location and methods of getting the product to the consumer. In our situation our location is Colombia.
The price refers to the amount of
The biggest competitor in the Colombian coffee industry is Juan Valdez Café. They are very committed and active in the coffee industry. They have 238 Juan Valdez coffee shops, 135 of them are in Colombia alone. The other 35 are in other countries such as Chile, Costa Rica, Ecuador, El Salvador and Panama. The Juan Valdez Cafe Company had developed efficient and effective processes in growing and harvesting the finest Colombian coffee beans for their brand.
There are two major barriers that we would have to understand and overcome in order to effectively compete with the Juan Valdez Cafe Company. The first barrier would be language. We would need to hire an interpreter to assist us when interacting with the locals. The interpreter would also assist us with purchasing land, supplies, and equipment needed for our company to succeed.
The other barrier would have to be the weather. Colombia is situated in the path of the El Nino and La Nina weather patterns and crops are adversely affected in some locations. There is no real solution to that barrier.
Taxation and Double Taxation Risks
Colombia has had two double taxation treaties in the past, one with Spain and the other with Chile. The double taxation with these two countries is no longer in existence. The only taxes businesses are responsible for is the income of the company in which the company has residence established by permanent residence and gains from transfer of stocks.
Market Risks (four P’s)
The four P’s of marketing are product, place, price, and promotion. The products are the goods and or services the business provides for a target market. Things to consider when developing any product are the quality, design, features, packaging, and customer service. In our situation our product is coffee.
The place refers to distribution, location and methods of getting the product to the consumer. In our situation our location is Colombia.
The price refers to the amount of
References: Corporate Tax Colombia. (1997-2013). Retrieved from http://www.internationallawoffice.com/newsletters/details The Four P’s of Marketing. Retrieved from http://toolkit.smallbiz.nsw.gov.au/part/3/12/56