Soft Drinks Sector Sector Analysis The firm to be established falls under the soft drinks sector, which is within the food industry. The industry has gone through a number of challenges in the recent years owing to the economic downturn experienced in the country, which is a result of the global financial crisis. A critical review of the industry suggests that companies in the sector were not affected since they registered good returns. This implies that many individuals, both the middle and high class, consumed soft drinks. This could be due to environmental demands since temperatures are always very high, forcing people to take cold drinks, irrespective of whether they are rich or poor. Industry review reveals that the sector could not have witnessed economic downturn that hit the nation because of the health concerns and the desire to be well among consumers. An individual would prefer using bottled water and fruit juices instead of consuming untreated water because of health issues. The report of the review conducted recently proved that people preferred using fruit juice, which is claimed to reduce the cases of obesity and overweight. The report underscored the fact that the desire to prevent obesity and overweight boosted the soft drinks sector. Drinks containing high rates of chemicals witnessed a fall in their sales while natural soft drinks and bottled water witnessed an increase in the volume of sales. Recently, the government of the United Arab Emirates banned the sale of sugary drinks in schools, which boosted the sale of natural fruit juices. From the above analysis, it is projected that the new company would perform well in the market. However, it must observe labor laws and other laws touching on copyright. As the company enters the market, it must be aware of the soft drink giant companies, such as Coca Cola and Pepsi Co, which have adequate technologies and capital. These firms have the ability of crushing the new firm in the market through heavy advertisement and offering low competitive prices. In 2011, the two soft drinks multinational companies accounted for a third off-trade value in the entire sector. In the subsequent years, these companies failed to replicate the previous figures in terms of sales because of the shift from carbonated drinks to natural drinks. Therefore, the new company has the ability of penetrating the market because it does not produce chemical related drinks. The firm intends to produce natural fruit juices that would meet the health issues of many people in the country. To be successful in the market, the company will have to be careful when handling labor laws and issues related to copyright. Non-observance of the law might bring down the firm, given the fact that competitors have adequate capital. Legal Requirements Labor Laws: General Provisions As the new company aspires to introduce the new product in the market, it has to comply with the labor and intellectual property laws. Compliance to the law is extremely important because it gives the company an advantage over others in the market. The company that respects labor laws is always perceived positively while the one that neglects the plight of employees is always viewed negatively. Public image has a direct impact on the sales of any product. A company with a good public image regarding the treatment of employees will alw