Jamba Juice External Analysis

1591 words 7 pages
Case Analysis #1: Jamba Juice
Sociocultural Factors Sociocultural factors influence and restrict consumption ideas, needs, desires and purchase behavior. People from different countries and different regions have different life patterns and different sociocultures. These differences directly influence the products that industries want to produce because people may even have different attitudes and value toward the same product due to different sociocultural factors. With the rapid development of modern society and the continuous improvement of living standards, the degree of attention paid to health has increased. “Franchise businesses continue to pay close attention to their customers' need for convenience, new flavors and, yes,
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Therefore, suppliers have the advantage of deciding material price and quality.
Threat of Substitute
The threat of substitutes in restaurant retail industry is high. Jamba Juice is best known for its all natural, healthy fruit smoothies and fresh blended juices. However, most of these healthy, organic beverages can be easily made at home with cheaper price. All it needs is a blender, fruits, vegetables and maybe some ice. Moreover, many health stores supply different kinds of vitamins, minerals and supplement tablets or drinks at low prices. “According to the latest data from SymphonylRI Group Inc., sales of the core vitamin category through food, drug and discount stores (excluding Walmart) grew a modest 2.4% to $803.3 million during the 12 weeks ended November 27,2011” (Consumer Trend, 2012).
Competitive Rivalry
Many stores have started to work on producing nutritive, organic products to satisfy consumers’ demands since the concept of health and wellness’ importance rise quickly in recent years. Even though Jamba Juice’s beverages and foods are well known for their low of calories and fats, and rich of vitamins and nutrition, they are costly. According to the article “Now That's A Rich Market”, a couple of coffee with the same size and similar amount of calories and fat cost $4.00 in Jamba Juice but only $3.59 in Cinnabon and $2.44 in Dunkin’ Donuts (Khermouch, 2005). In order to expand its market and attract more customers, Jamba


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