Introduction Coffee is a beverage that is consumed all over the world. Many consumers attribute their consumption of coffee to a source of relief from any underlying stress. It has, therefore, with time become one of the most consumed beverages all over the world. However, there are different flavors that are added in different coffee products. The analysis below is based on cinnamon coffee in the USA. The study is based on USA due to the factors and characteristics that have already been established. This is because the USA has a continuously growing population.
It also has a ready market. Based on the fact that cinnamon spiced coffee will be a new product in the market, the USA is a perfect area of study because the residents have a fairly elastic taste. This implies that they will be able to adjust to the new kind of coffee. The USA also seems to have a ready market and relatively increasing demand. (Dicum and Luttinger 1999)The most important decision for any entrepreneur is being able to identify a gap in the market and coming up with a strategy on how to fill the particular gap.
Cinnamon coffee is a new product in the market. Therefore, for any company, it is very crucial that the person in charge identifies the best location for optimal maximization of sales. This implies that a market study must be undertaken. Choosing the location could be done on the basis of the PEST analysis. The analysis is important in ensuring that the location chosen leads to high profits. The analysis also takes into consideration of opportunity and threats in the chosen location. A possible location is the USA.
This is because it is stable politically, economically, socially and technologically. Therefore, this implies that the opportunities presented by doing business in USA are more than the threats that the location presents. A close analysis of these factors will indicate the same. A diagram showing PEST analysisPEST analysis refers to the political factors, economic factors, technological factors and social factors that may affect a new business once it is introduced in the market. Political factorsPolitical influences in any country are central to the success or failure of many businesses.
However, studies have shown that these influences mainly affect large businesses. This does not completely eliminate any effects and influences on the other small businesses. They are mainly affected in terms of the political stability or instability in a country. The USA is a world power. It is among the most powerful nations of the world. Moreover, it is on e of the most stable countries politically. This is because it has continued to be in peace for the last decade. This implies that it is relatively stable.
Therefore, doing business in the country creates the certainty that all would be fine as it has been. This is a positive contribution towards the choice of the USA as the location for the sale of cinnamon coffee. (Ponte 2002A politically stable country leads to continuous economic growth and development. This is because there is no destructive action s in the case of building the nation. There are no hurdles on the way. This leads to the prosperity of businesses established in these countries. The political stability enjoyed by the USA is a clear indication that doing business in this country would be highly productive.
This also means that the market for the products is not tampered with. This is hugely beneficial for the businessmen. The USA, therefore, makes a perfect choice for this kind of business.