Weaknesses: First, Jamba Juice’s initial surge in store openings, coupled with mismanaged growth patterns, placed a strain on the company’s cash reserves. Second, a further lack of financial discipline within the company allowed for huge increases in operating expenses. Third, although Jamba Juice initially gained popularity due to innovative products, their product offerings quickly became outdated and unexciting. Fourth, the seasonality of cold drinks created stagnant revenue during Fall and Winter months. Fifth, Jamba Juice initially relied on word-of-mouth advertising, but failed to create a viable marketing strategy as they expanded nationwide. Sixth, top management failed to manage franchisees in terms of training, marketing, and operational …show more content…
Second, Jamba Juice could open smaller footprint stores in convenient locations that can make the smoothies faster and still continue the current brand positioning. Third, they could increase their citizenship efforts and fund non-profit organizations that focus on educating the public on the benefits of a healthy & organic lifestyle. Fourth, Jamba Juice could seek to broaden their current product offerings, such as smoothies that utilize new raw ingredients. Fifth, they could seek out new suppliers (such as CPG companies) in an effort to cut materials costs, and also provide more unique products. Sixth, Jamba Juice could partner with a gym, or other type of fitness center in an effort to reach a more nutritionally-minded, athletic market segment.
Threats: First and most importantly, there is a high threat of consumers backward integrating and making their own smoothies. Second, other smoothie competitors could cut their prices or innovate new products and steal some of Jamba Juice’s market share. Third, potentially, raw material prices could unexpectedly increase due to a variety of environmental or business factors Fourth, fairly stagnant market demand and low barriers to entry could lead to new entrants entering and stealing market share. Fifth, the changing economy may leave consumers with less disposable income, which will result in a decline in the sales of Jamba Juice.
Overall: Jamba Juice’s strong brand and competencies in creating quality products make opportunities for expansion (i.e. diversification, horizontal integration) very attractive. However, their inability to keep costs down and their lack of quality marketing make the threats of price wars or increased product substitution increasingly