Industry Environment Essay

1616 words - 6 pages

1.0 Question 11.1 Industry EnvironmentSuggested: -Easy to enter -Lower cost and lower capital investment - Little retail space Suggested: - O ffer similar product - Few major rivals -Difficult to convincing customer Suggested: -Low switching cost -None customer loyalty Suggested: -Major substitutes is home making drinks - P rotein shakes - O thers healthy store and fast food outlet Suggested: - Many supplier and not depends on one supplier -Fruit supplier beg for partnershipThreat of substitutesThreat of substitutes is high for Jamba Juice. Major substitutes for Jamba Juice are home making drinks like vegetable juice. Consumer can easily make the vegetable juice at home. Thus, it can help consumer to save money and convenience to them. Besides, consumer can buy protein shakes at healthy stores to fulfill their healthy needs. Others substitutes are fast food outlet. Consumer can buy healthy drinks at fast food outlet when they having food at there.Threat of supplier bargaining powerThreat of supplier bargaining power is low in Jamba Juice. Jamba prides itself in serving healthy foods by using fresh fruit. If fruit supplier currently increases in price to sell the fruit for Jamba Juice, Jamba Juice can consider buying fruits from others supplier with lower price. Jamba Juice has many franchised therefore Jamba Juice will purchase products from different supplier rather than dealing with one supplier. Therefore, fruit supplier will beg for partnership with Jamba Juice.Threat of buyer's bargaining powerThreat of buyer's bargaining power is high in Jamba Juice. Nowadays switching cost for the Jamba Juice customer is low because customer can purchase healthy juice from fast food outlet and healthy store. Besides, Jamba Juice has no customer loyalty because customer can purchase healthy juice and smoothies from others stores to fulfill their satisfaction.Threat of new entrantsThreat of new entry is high in this marketplace. New competitor will easy to enter the healthy food and smoothie's marketplace because nowadays consumer more focus on healthy lifestyle therefore the demand for the healthy food and smoothies will highly increase. Besides, new competitor can easy to enter this market with lower cost and lower capital investment to do the healthy and smoothies business. Besides, new competitor uses the little retail space to do the healthy food and smoothies business.Threat of existing rivalryThreat of existing rivalry is high for Jamba Juice. Jamba Juice has many rivals offer similar healthy juices and smoothies in the marketplace. Thus, it will lead to high competition in the healthy juices and smoothie's marketplace. Besides, few major rivals such as Smoothie King, Maui Wowi and Starbucks are quickly rising and sometimes it will overcome the sales and overall revenue of Jamba Juice. Therefore, Jamba Juice has to work hard to stay ahead of the competition. It is difficult to convincing customers that menu is different and better than competitors...

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