In terms of the political environment, the country is relatively volatile as there is a high level of competition in the politics of the region. The country is preliminary a democratic government run through the parliament, which manages the laws and the legislature for the import and export of goods as well as set up of businesses by international companies.
The country is open and flexible with low barriers to entry when it comes to international companies seeking to start business in the region as it emphasizes foreign direct investment in the country. This can be beneficial for the marketing and international business strategy of the Arizona Beverage Company.
While the competition for cold beverages is very string in the region with international and local competitors vying for the attention and share of the same market, when it comes to iced tea, the competition present is much lower. There exist only a handful of competitors in this market. Tata Tea the tea manufacturing giant in the region lunched its iced tea version in 2002 under the name of Tetley(‘Tata Tea mulls iced tea launch’, 2002). On the other hand Pepsi has also recently launched its iced tea drink under the name of Lipton Iced Tea in coalition with the Unilever group (Pepsi firms up plans for iced tea, 2003). Another local tea manufactures is the Tuticorinport Company which manufactures and sells iced teas as well as instant and organic teas.