Running head: JAMBA JUICE

Jamba Juice Porter and SWOT Analysis Name of Student University Date

MANAGEMENT Build-in Five Forces Model of Jamba Juice According to Michael Porter, Jamba juice market is influenced by five forces Supplier Power

Jamba juice requires high quality supplies of fresh fruits and vegetables as well as processing equipments. According to Perron & Stan (2003), the quality of each type of the smoothie product depends to a great extend the quality of these basic ingredients and equipments. Therefore, company conducts quality assurance testing for each supplier to ensure they measure up to the USDA grade-A standards. Threat of New Entrants and Entry Barriers

The barrier to entry for any company interested in venturing into the Jamba Juice market can be classified as said to be fairly low in a difficult range. This is because Juice production requires relatively low capital. However, Jumba Juice has established outstanding product differentiation and strong customer loyalty. Therefore, For a new entrant to succeed in this market, it needs to develop a strong marketing information campaigns and create something that will differentiate it from the already dominating leaders. Threat of Substitutes

Jumba Juice smoothie products have many substitutes that pose a considerable threat such as coffee, healthy juices, milkshakes, soft drinks and energy drinks. Each of these products is not from different from Jamba Juice smoothies in terms of price and quality.

MANAGEMENT Buyer Power

Jamba Juice customer niche include health-conscious whose desire in live a healthy lifestyle. Therefore, Jamba has positioned it products as the best alternative to the conventional fast foods with regard to calorie content and sweetness. Rivalry

Jamba Juice was the smoothie market leader till competitors entered into the healthy living and fitness category. Such entrants included Juice it Up and Smoothie king. Starbucks and Mc Donald are also ventured into the market producing different range of products such as frozen drinks and milkshakes. SWOT Analysis of Jamba Juice Jamba Juice has established itself as the strong brand name in the health conscious food products industry. Major weaknesses o Jamba Juice include its stand alone position in the industry as well as lacking sufficient resource to have a competitive edge over fast food chains and groceries such as Starbucks and McDonalds. The available opportunities that Jamba Juice can explore include venturing into other retail opening such as gyms and salons as well as expanding into other food areas in the wide healthy food sector. . Pride & Ferrell (2008) argues that Jamba Juice faces substantial threats from competitors in the food and beverage industry such as Starbuck and McDonalds and the threat of being substituted by similar products.

MANAGEMENT

Reference Perron, K., & Stan, D. (2003). Jamba Juice Power: Smoothies and Juices for Mind, Body, and Spirit. New York: Penguin. Pride, W. M., & Ferrell, O. F. (2008). Marketing. New York: Cengage Learning.