The problems that may arise in Saudi Arabia while Jamba Juice is launched in the country can be bifurcated into three as below:
1. Competition problem in Saudi Arabia
Competition is an important problem for any business entity which may hit the firm and its expansion plan. Large numbers of players are operating in the market with their highly developed products and services. However the some business entities are overcoming from these problems through their uniqueness in the market. As far as Saudi Arabian market is concerned, it occupies a large number of national as well as international players. Soft drinks in Saudi Arabian market reports that its size and shape of the market at a national level. It registered 6% of total volume and growth in 2007.
The popularity of these drinks and juices are found due to the large availability of different companies and with their unique products. Carbonates and bottled water remained as most popular and the fruits and vegetable juices are remained at second in terms of volume. However the functional drinks were registered as more in the year of 2007 as it is substitute for all these drinks and juices in Saudi Arabia. As a new player, Jumbo Juice can survive if and when they find all these competitive condition and come up with unique product. Hence the market was already grabbed by the major player with their strong brand, unique product and service.
2. Health Consciousness
Every person in the universe gives main priority to his health and life condition. In Saudi Arabia the consumers are more careful about their health and it found that there is an increasing trend towards health conscious. This trend were initially pushed and published in Saudi Arabian country through media and Television. However a large number of public programs were conducted by the local people and the local administration throughout the country. And it still continuously programming in the Saudi Arabian Television about the health care conscious. Ultimately it hit to the large foreign customer in the state who is more conscious than the local consumer. However the trend pushed the people to buy good quality and diabetes free product. Due to this effect the branded company will get the benefit. The bottle water and low calorie cola registered an impressive 8% growth in the total volume terms in 2007. Similarly the famous branded company whilst fruit and vegetable juice were registered 6% growth in its operation in the land.
3. Saudi Arabian law ‘Sharia’
The Saudi Arabian legal system formed in the year of 1992 on the basis of sharia or the Islamic law, which another factor is affecting to multinational players to investment in the Saudi Arabia. The sharia was strictly applied throughout the state and in accordance with the explanation of Hanbai school of Sunni Islam. The Muslim’s believed that the sharia as the sacred law and every individual should follow it and it is the supreme on to all. The law has its own position and grade in history and still it is being strictly practice in Saudi Arabia.
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