Essay on Jamba Juice External Analysis

1591 Words Apr 8th, 2012 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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Switching Costs
Since there are many stores, like McDonald’s and Starbucks that are also providing all kinds of healthy smoothies with a price that is similar to Jamba Juice’s, buyers actually will not face high switching costs. Therefore, low switching costs enhance the bargaining power of buyers.

Product is Undifferentiated
Even though Jamba Juice advertizes that its products are healthy, low in calories and rich in vitamins, many other stores also provide the similar smoothies or fast foods. This indicates that Jamba Juice’s products are not differentiated. Consumers can still find products in other stores that are familiar to Jamba Juice’s, which enhances the power of buyers.
Power of suppliers
For restaurant retailers, the power of suppliers is high. This can be indicated by lack of substitute produces and low importance of restaurants as buyers.
Availability of Substitutes
Although Jamba Juice demands a large amount of agricultural commodities to help produce the healthy and organic smoothies, these commodities are limited. There are not other substitutes can replace these agricultural commodities to make smoothies as healthy as the organic raw materials. Hence, this gives the suppliers the opportunities to raise the price or decrease the quality of the agricultural commodities.
Importance of Customer to Supplier
Besides Jamba Juice, many restaurant and foodservice stores need agricultural commodities. If Jamba Juice

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