JAMBA JUICE

Group 6
Duc Dam, Vinh Nguyen,
Mary Kim, Jake Hobbs

Introduction
Jamba Juice is a leading restaurant retailer of
better-for-you food and beverage offerings,
with smoothies and juices being the main
products
Vision: To inspire and simplify healthy living
Mission Statement
Jamba Juice has been aiming at leading people in the world
to healthy lives through keeping their traditional and
advancing style.The priority is to provide healthy food and
bring happiness to everyone. We treat all of our customers
with respect and warm hearts,and try to bring them fun and
energy to last their whole day by purchasing our products.

History
1990 - founded in California
1993 - opened 2nd and 3rd stores
2006 - went public as NASDAQtraded JMBA
2008 - significant leadership
changes
2013 - 788 locations: 301 companyowned, 454 franchise stores, 33
licensed sites overseas

Value Chain Analysis

Market opportunity: health-conscious population
Primary Activities
Product expansion:
Jamba Kids targeting young population
Food and hot beverages aiming to reduce seasonal
variability
Consumer packaged goods leveraging on healthy brand

Marketing: top-of-mind products, word-of-mouth

Operation strategy: franchise stores, reduce costs

Support Activities
Infrastructure: growing number of stores

Financial Analysis

Total
costs/Revenue

Revenue
Growth

Sales per store

Company-owned
stores

Franchise and
other stores

DuPont Analysis

Profit
Margin

Asset
Turnover

Debt
Ratio

Return on
Equity

External Analysis

Threat of New Entrants

Many threat of new Entrants as
McDonalds and Starbucks entered
the smoothie market after 2009.
Jamba Juice found this as a validation
of the potential of smoothies in the
market.

Bargaining Power of
Suppliers/Buyers Substitutes
Jamba Juice as a supplier has low
bargaining power as it is now one of many
smoothie providers in the market.
There are many threats of substitution in
the market. E.g McDonalds, Smoothie King,
Starbucks.
Buyers have high bargaining power in the
Jamba Juice market as they can purchase
smoothies of similar varieties at other
providers for a cheaper cost.

Stage of
The Industry Life Cycle
Maturity Phase- Jamba Juice is currently in
its maturity phase of the industry life
cycle.
Jamba Juice has been in the smoothie
market for 22 years and is currently just
trying to maintain its yearly revenue while
staying competitive in relation to other
smoothie providers in the market.

Macro Environment
Key Rivals
McDonalds- Offers a cheaper alternative to
current smoothie options at Jamba Juice.
Starbucks- In the last couple years joined
the smoothie race along with already
being a seller of coffee.
Panera Bread- Added the smoothie factor
to their already healthy line of food items.

Social/Economic
Environment
Jamba Juice usually makes
appearances in the media via a
charity event to initiate a new store
opening.
Jamba Juice gains attention through
appearances in newspapers such as
the New York Times and the Wall
Street Journal as well as on television
on shows such as Good Morning
America.

SWOT Analysis
First of its kind
Focuses on
health and
nutrition
Strong brand
name in healthconscious food
industry

Franchise stores
Growing healthconscious
population

Seasonal
variability
Weak marketing
strategy

Strong
competition
Growing costs
on fruit
transportation

VRIO Analysis
What is a VRIO Analysis?
Mission/Vision
StatementObjectivesInternal&External
Analysis

4 step question asked about a resource

or capability to determine its
competitive potential
The question of Value
The question of Rarity
The question of Imitability
The question of Organization

VRIO - Value
Is this resource or capability
valuable?

Procurement:
Buys from Sygna (subsidiary of Sysco Foods)
Technology:
Procedural enhancements
Labor management
Human Resources
Hires experienced managers
Customer service oriented employees
Financial incentives

VRIO - Rarity
Is control of the resource/capability in
the hands of a relative few?
Jamba Juice sustains competitive
advantage by meeting substantial
amounts in supply over time and creates a
work atmosphere where everyone believes
in their objectives and strategies

VRIO - Imitability
Is it difficult to imitate, and will there be
significant cost disadvantage to a firm
trying to obtain, develop, or duplicate the
resource/capability?
Jamba Juice gains first-mover advantages
in the market by obtaining fresh produce
every day compared to their competitors
Ie: Smoothie King

VRIO - Organization
Is the firm organized, ready, and able
to exploit the resource/capability?
Is the firm organized to capture
value?
Jamba Juice has broke through the
market by being the lead provider of
all fresh-made juices, first of its kind,
etc.

Jambas Three Generic

Strategies

Competitors Strategies
McDonalds Overall Cost Leadership
Starbucks Differentiation
Panera Differentiation

Types of Diversification
Fresh

BCG Matrix
Low

Healthy
smoothie
s

Jam for
Jamba
Kids
Consumer
Packaged
Goods

High

Market growth

High

Low

Market share

Recommendations
Continue focusing on healthy
products
Target on young customers
Pursue a franchise business model,
reduce amount of capital required
Increase marketing expenditure and
expand more aggressively
Acquire a young business with hot
beverage products (coffee, tea) if
possible