Geopolitical tensions involving China may affect Comvita's business viability because around 40% of its annual revenue comes from the Chinese market. Since China is one of Comvita's largest overseas markets, any disruption to trade could significantly reduce sales and profitability.

If political tensions lead to higher tariffs, Comvita's export costs may increase. To maintain profitability, Comvita may raise its selling prices. However, higher prices could reduce customer demand, leading to lower sales revenue and increased pressure on cash flow. This would reduce Comvita's profitability and business viability.

In the short term, higher tariffs may increase Comvita's export costs. As prices rise, some Chinese customers may reduce their purchases or switch to alternative brands. This decreases sales revenue and puts pressure on cash flow, reducing short-term profitability.

In the long term, ongoing political uncertainty may encourage Comvita to diversify into other international markets instead of relying heavily on China. Although this strategy may reduce future risk, it could require significant investment and restructuring, increasing costs in the long run.

Beekeepers and suppliers may experience lower demand if Comvita exports less honey to China. This could reduce their income and create financial uncertainty for rural communities that rely on beekeeping.

AI sensors can improve Comvita's production methods by monitoring hive conditions and detecting potential problems early. Healthier bee colonies can produce more consistent, high-quality honey. Better product quality increases customer satisfaction, which may encourage repeat purchases and increase demand. This improves revenue, profitability, and ultimately Comvita's business viability.

The sensors collect real-time data such as hive temperature, humidity, and bee activity. AI analyses this information to identify potential risks before they become serious problems. This helps Comvita reduce bee colony losses and maintain a stable supply of honey.

AI technology also benefits beekeepers by providing accurate data about hive conditions. In the short term, it helps them respond quickly to potential problems and reduce production losses. In the long term, more reliable production can increase farmers' income and strengthen relationships with Comvita.

The weight of both influence is critical to Comvitas business viability and I think the geopolitical influence in our market is more important because although both have great impact on the businesses strategy of whether improving the operation or damaging the local economy.Geopolitical factors have an immediate impact on revenue and international trade, while AI is a long-term operational investment.

Overall, my evaluation shows that Comvita has strong long-term viability despite facing significant geopolitical challenges. The increasing tariffs affecting around 40% of Comvita‘s annual revenue have impacted our entire business operation and supply chain. However, the development of AI sensor farming helps reduce uncertainty, improve operational efficiency, and keep the business running more effectively. Therefore, AI helps reduces operational risck and the negative impacts of geopolitical trade tensions, supporting Comvita's long-term viability in the apiculture industry.