1.0 Question 1
1.1 Industry Environment
Suggested: -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 partnership
Threat of substitutes
Threat 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 power
Threat 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 power
Threat 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...