Write an eight (8) page paper in which you: Assess risk for your business. Identify and evaluate the main sources of risk for your business. Explain your plan for dealing with risk by developing a...

Risk for our business-
If we will take a more deeper look of the market than following can act as some of the threat which can be risky for our business-
· Competitors-
Being new to the market it will not be a cake walk for our product “Rejuvenade” to penetrate the market and strongly fight for the market share as lot many strong competitors are present in this beverage industry and that to specifically in the health/energy drink which is a vital part of beverage industry. Competitors like Gatorade, PowerAde, and other energy drinks are catering to the need of potential customers in the target market very successfully and are really established brands for an instance we can take Gatorade which came into existence at 1965 which means that they are deeply rooted in the target market where our product is trying to make a lace for itself. Not only the time factor is quite crucial but their being part of big brands like PowerAde is a Coca Cola product, Gatorade is a PepsiCo product also provide them much of stability in the market and people not only trust the parent brand i.e. Coca Cola and Pepsi but also their sub products Gatorade, PowerAde as they are present in the market from very long.
· Market size V/s Market competitiveness-
After our pilot study we came to know that there are approximately 1.494 million potential buyers in the market and then on the basis of the same we calculated our revenue and profit margin but never we realized that our fight is with the giants. Though the market size for our product is quite big (as per our expectations and the way we want to penetrate the market) and we have fair chance to be successful but the competition in the market can act as a huge threat.
· Economic condition-
Economic downturn has a potential to convert any super hit formula into failure because if people have limited money to spend than they will try to spend their money on their basic needs and not on any additional products so it is very important that the economy of USA remains stabilized and no downturn take place in the future.
Following is the contingency plan for dealing with the risk-
In my opinion we must understand the risk that we are going to face due to the existence of such big brands so we must not focus all the market of USA at once but should focus on some particular market where majority of potential customers are present in the market so that we can start understanding the need, preference and behavior of the customer which will make it easier for our product to penetrate as we can easily monitor the demand and supply process, the liking and disliking etc. and as per the demand we can move ahead and can cater to the rest market competitively.
The advantage that we will achieve by following this contingence plan will be-
· We will not go into the losses at once as we will monitor customer behavior and then if any moderation and changes are required than we can analyze those changes and can also implement those changes to cater the potential customer more competitively. Here, changes can be anything related to pricing, packaging or requirement/need of different variance in the product may be different flavor or quantity etc.
· If we will be able to cater to one or few market effectively in the starting only than not only we will gain confidence to take a big step further i.e. to be able to fight with giants of the market but it will also help us in brand recognition as locally we would have made a good customer base and they will help us and our product in circulating positive word of mouth.
· The amount that we have decided to spend on different activity will not be wasted at one go and we can easily earn interest on it if invested into good plans till the time we don’t need it so that the money doesn’t remain stagnant and can be used in future for expansion successfully.
Penetration strategy-
We are using not one but different type of penetration strategy so that we can attract more and more customers towards our product...