Costa Coffee Entry to Azerbaijan A Strategic Look

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Azerbaijan has a total population of 9,643,000 as of 2011 (CIA).&nbsp. It is composed of 3,436,459 females and 3,307,88l males in the bracket of ages 15-64 and a male population of 227,172 and 367,675 bracket of 65 years and above.&nbsp. Population is composed of Azeri 90.6%, Dagestani 2.2%, Russian 1.8%, Armenian 1.5%, other 3.9% (1999 census). The population growth rate is 1.017% with a rank of 114 in world comparison.&nbsp. Baku, its capital holds 1.9 million people. Azerbajan has a total population of 9,643,000 as of 2011 (CIA).&nbsp. It is composed of 3,436,459 females and 3,307,88l males in the bracket of ages 15-64 and a male population of 227,172 and 367,675 bracket of 65 years and above.&nbsp. Population is composed of Azeri 90.6%, Dagestani 2.2%, Russian 1.8%, Armenian 1.5%, other 3.9% (1999 census). The population growth rate is 1.017% with a rank of 114 in world comparison.&nbsp. Baku, its capital holds 1.9 million people. 2. Economy.&nbsp. Its high economic growth is attributable to large and growing oil exports, construction, banking, and real estate.&nbsp. Obstacles to its progress are said to be the public and private sector corruption and infrastructure inefficiencies.&nbsp. The country also needs a stepped up foreign investment in the non-energy sector.&nbsp. &nbsp.It imports machinery and equipment, oil products,&nbsp. foodstuffs, chemicals, and metals from Russia, Turkey, China, Germany, the UK, Ukraine, and Italy. Important statistical data gathered from CIA GDP Per capita is $10,200 which is ranked as the 109th place in world comparison.&nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. A low unemployment rate of 1%.&nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. &nbsp. As of 2011, its bank prime lending rate is 19 % ranking the country as 19th place in world comparison&nbsp. 3. Business Environment. Business Environment Snapshots done by the World Bank (2011) shows Azerbaijan ranking as 66th out of 183 in Doing Business in 2012.&nbsp. However, the three listed obstacles in Doing Business here are Access to Finance,&nbsp. Tax&nbsp. Rates, and Corruption.&nbsp. According to the information, “52.2% of the firms report being expected to give gifts to public officials ‘to get things done’,&nbsp. compared to 24.9 % regional average.”&nbsp. As to “economic freedom” Azerbaijan scores 58.9% making it as the 91st freest economy in the world index in 2012. This low score, according to the report is a reflection of its worsened performance in business freedom. 3.1 Competition.&nbsp. Tea and coffee remain to be the favorite hot drinks in Azerbaijan. Euromonitor (2012) reports tea is consumed by almost 100% of its citizens, while coffee remains to be one of the stable areas in hot drinks, Multinationals strongly positioned here are Nestle, Unilever, and Ahmad due to the popularity of their brands. Brand loyalty is very strong in coffee. Their business structures are general partnership agreement with an LLC for Nestle, a trading company for Unilever, and corporation for Ahmad coffee.