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
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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.
In order to right the ship that is America’s food industry, we need to recognize the monopolies in the U.S food industry. These massive food conglomerates must be broken up in order to create competition in the market. This will allow the completion to dictate the market. More companies means more competition, and when companies compete, the consumer wins.
High quality ingredients, various things on menu, make the food right infront of you; handcrafted preparation
The fruit juice and health drinks market has, over the past couple of years, seen a massive growth both in terms of sales and of the increasing demographic of customers that are choosing to purchase the products, especially at the expense of carbonated drinks. In 2006 the estimated value of the total market was £2.77 billion at retail selling price, having grown from 30.7% in 2002 (Key Note, 2007). Innocent Drinks are the markets biggest player with a market share of around 62% , selling in excess of 600,000 drinks every week (Barnett, 2005) The business is currently valued at £100 million. Not only content with being the largest distributor of smoothies the business has branched out to start the selling of "thickies" a yoghurt based drink which promises to be a hugely innovative idea and also water based fruit drinks aimed at children.
If you bought a smoothie recently you may have been shocked at the price. Jamba Juice is a well-known smoothie chain, and it strives in promoting a healthy living style. When you bought this smoothie you maybe thought you were paying for the health benefits or quality. But that isn’t true, you were paying for the product and materials that went into serving that smoothie. Jamba Juice was simple back in 2008, only serving smoothies, but began a strategic move to transform. Consumers wanted more than something they can drink, they wanted food too. Jamba’s mission to transform began and the prices changed with it. By 2014, Jamba Juice began serving fresh juices, whole food smoothies, nutritional smoothies and food items (“Jamba Juice,” n.d.). But why did smoothie prices have to change? Well, many factors contribute to the cause.
...alented young managers in this area need to be aggressively obtained for long term growth. For a quick fix, this service should be outsourced to handle current needs. Distribution channels need to improve as well. Currently, competitor’s products are easily found at major retail channels. Nestle is in the position to gain a strong hold on the home dessert market for ice cream. Ice-fili needs to compete more aggressively in this portion of the market. In addition franchises and fast food chains should be targeted for partnerships or joint ventures so Ice-Fili’s ice cream can grow in association with a post meal dessert opposed to simply impulsive snack purchases. A key avenue to explore is an Initial Public Offering. This would generate enough funds to continue capital investment in technology desperately needed as well as promoting international market growth.
Innocent is a well-established smoothie and health food company in its home market of the UK and has had success in moving into various markets in the European Union. With the added partnership with global brand Coca-Cola, it could be said that Innocent is in prime position to begin its expansion into new markets globally. This report will note the benefits and potential risks of entering the chosen market of Japan based on research and theoretical analysis.
In viewing males and females at the Argyros Forum Einstein Brothers Bagels and Jamba Juice seating area, it became noticeable that people tend to remain in the social constructs of their own gender. In our culture, there seems to be room “for only two genders… and anyone who doesn’t clearly fit one or the other is instantly an outsider” (Johnson, 2006, p. 16). In order to appear normal, people act the way they are supposed to. The females acted more polite towards the employees or bubbly when talking to one another, while the males cared less whether they spared a smile or “thank you” after ordering or would speak to each other in a more laid back manner, for instance. However, one of the traits that looked as if it was pretty much the same
Our research indicated more viable strengths than weaknesses. Strengths such as brand recognition, steady growth in global markets, and strong leadership. McDonald's has become part of America's culture and now the same can be said for the global arena based on the demonstration of growth and continued dominance over competitors. Business Week Magazine even ranked McDonald's as "one of the ten most recognized brands in the world", a position that creates significant opportunities for the company. An important strength that continues to have the most dramatic impact on McDonalds is their top level management. Even though this is classified an as internal strength, McDonald's has capitalized on a management style that helps to infuse a strong culture. A dynamic aspect of the McDonald's culture is the willingness to innovate and adapt, thus making necessary changes when the need arises.
There are high entry costs to enter the market. The large industry competitors already have captured the market share.
Many new players entered to the market copying the same techniques for growth like Teva to capture a significant market share by offering low prices due to their low cost strategies. The entry of these players made the industry intense with tough competition, low profit margins and collapsed prices.
Maintaining profits in this competitive industry is very difficult. The top competitors in the industry have an extensive portion of the entire market, nearly 80% of the market they control. This makes it extremely difficult for small entities entering the market to hold onto their position in the market and stay competitive.
To operate our company with a real team effort with a professional, friendly and efficient customer service and offer the best line of finest smoothies to our deserving clients,
Punj and Lloyd, and RITES. According to Hoovers (2015), initial capital investment, economies of scale, market competition, regulations and consumer behaviour greatly influence the rate of new players entering an industry. L & T has well established market due to its long history since 1938 and experience in the sector.
Potential new entrants: With positive economic outlook, fine business environment, and increasing number of population growth rate, it is expected that there will be more companies coming in the industry;
As Kerry began growing they developed some key values in the SWOT (strengths, weaknesses, opportunities, and threats) analysis that are the backbone for the success of the Kerry Group. The major strength of the Kerry Group is procurement. Procurement allows Kerry to use available global resources in specialty ingredients, seasonings, coating systems, sweet ingredients, nutritional systems, and specialty proteins; by doing this they are able to acquire the highest-quality raw materials. Another strength of Kerry is technological development. Through technological development Kerry is able to develop flavors and gain an advantage over the competition. Kerry gains this technological advantage through research and development and acquisitions. The weaknesses of Kerry Group include the firm infrastructure. The Group’s debt-to-equity ratio is inordinately high for a company of Kerry’s size. Another weakness is in Kerry’s Human Resource Management division. Management encourages the employees to think “Kerry” or in sense be “Kerryized,” if employees do not follow this style of thinking they are ...