Jamba Juice Swot Analysis Essay

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Porter’s Forces Threat of New Entrants: HIGH The capital requirements to enter the smoothie industry are very low. The firms in the industry have a low-cost advantage over potential entrants. In terms of brand equity and resources, brands like McDonald’s and Starbucks are major threats. Additionally, customers have no switching costs when moving from one brand to another. Power of Suppliers: LOW The highly fragmented produce industry, which includes national, regional, and local firms greatly reduce each other’s negotiating powers. The low switching costs and lack of quality differentiation between produce vendors make it easy for smoothie companies to switch suppliers. Power of Buyers: MID-HIGH Smoothie consumers can buy from a multitude of …show more content…

The ease for companies to enter and exit the industry with little capital makes it appealing to anyone. The fragmentation of the industry has led to great competition, the lack of differentiation in the industry will make it hard for any company to stand out from the rest. The power of buyers and amount of competition will force companies to increase their R&D and innovation as the industry matures. SWOT Analysis Strengths Jamba’s biggest strength has been this ability to greatly increase sales each year, making themselves an established brand. The strong company culture at Jamba Juice establishes a great environment for customers and employees. Jamb can accredit being the industry lead to the high quality of their products and ingredients, which are regarded as the best in the industry. Weaknesses Jamba’s biggest weakness has been their mismanaged growth. Top management’s commitment to growth almost caused Jamba to go bankrupt. Jamba’s lack of R&D, innovation, and advertising have limited their amount of organic growth. Jamba’s poor communication, training, and support with their franchise owners have caused many of their stores to underperform.

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