Jamba Juice Bargaining Power Of Buyers

Threat of Buyer:

The bargaining power of Jamba Juice buyers is important because they have significant impact on the Jamba Juice Company annual revenues therefore Jamba Juice is always working to keep its customers happy and think of ways to attract even more customers. The growing numbers of informed customers within the market is increasing the power of buyers to influence prices. The informed customers are aware of the existence of competing and substitute products and can use this information to drive down prices. Threat of buyer’s bargaining power towards Jamba Juice Company can be very high. This is because buyers’ purchases are a significant portion of the Jamba Juice Company’s annual revenues.

On the contrary, threat of buyer’s bargaining power towards Jamba Juice Company can be very low. This

For instance, Jamba Juice needs to capitalize in marketing, advertising and promotion activities to differentiate its products from rivals to stay in business. On the other hand, aggressive rivalry pushes down prices leading to low proceeds. Jamba Juice offers high quality and all natural products. And because prices for vegetable and fruits are always on incline the company’s profits have declined in the past few years because Jamba Juice is challenged by its rivals to keep competitive prices. Jamba Juice competes with Planet Smoothie, Starbucks, McDonald’s, Smoothie King, Panera Bread, Duncan Donuts and Tim Horton. For Jamba Juice, the threat from existing rivals is high. The degree of rivalry is high since there are a lot of diners and restaurants that sell smoothies and also some that sell healthy food and the rest are in process of introducing health foods and drinks. Because of this Jamba Juice has to work hard to stay ahead of the competition. Usually once a customer chooses a place they like they will stick with it. It's just getting the customer to stick with them that is