Question

What would be 5 major cons for the Nestle company to set up its Ice Cream business in Cuba?

Answer 1

The main cons are detailed as below:-

The biggest cons of entering in the Cuban market can be seen in the form of the level of regulation of business by the government. In the case of Nestle, no partnership with the suppliers is permitted by the government which can be done by the company in other markets.

A limited marketing channel is the other limitation The company will not be able to promote its product through an advertisement on newspapers, radio, TV as media in Cuba is not free.

The third limiting factor for Nestle will be that there will be some local competitors who are already having a stronghold in the market such as Coppelia

The country is facing the issue of dual currency. Only the rich have access to CUC. Most of the customers may find the product of Nestle costlier.

The fifth issue which can be faced by Nestle is the problem changing the price of the product as per the demand and supply. This is not permitted by the Cuban government

KINDLY RATE THE ANSWER AS THUMBS UP. THANKS A LOT.