A Strategic Plan Analysis of Jamba Juice Company

A Strategic Plan Analysis of Jamba Juice Company

Name

Institution

Date of submission

Introduction

Progression of entrepreneurial skills results in evolving businesses to satisfy the needs of potential and existing customers. The internal and external business environment is usually dynamic, thus necessitates continuous research and innovation to counter existing and rising competition in the specific business industry (Ansoff, 2016). Jamba juice company has dominated in the juice making products in the last three decades. It manufactures blended fruit juice, smoothies, vegetable juices, and other related products (“Jamba, Inc. Reports results for the first quarter of fiscal,” 2018). The availability of market and effective leadership have contributed much to the company’s increased profitability, expanded market share, goodwill, many stores, customer base, and revenue (McDonald and Wilson, 2016).  In the United States, the company has the highest market share and customer base compared to its competitors. It has over 900 market locations operating in different counties domestically (“Jamba, Inc. Reports results for the first quarter of fiscal,” 2018). Due to effective leadership, the products of the company have penetrated to other new market destination areas, for instance, Philippines, Indonesia, Taiwan, and South Korea (“History of Jamba juice company – Funding Universe,” n.d.). The management team has successfully been able to align the organizational goals with customer specifications. Good governance has led to a clear definition of the organization’s goals, accountability of duties, useful performance appraisal, consistency controlling and direction, and selection of determined employees (Ansoff, 2016). Although the company has a good reputation, it is currently facing financial difficulties, increased costs, non-revenue generating stores, and stiff competition from its competitors, notably Starbucks and Mc Donald’s enterprises.

Significant Stiff competition in the market has led to a substantial decline in revenues (McDonald & Wilson, 2011). There are increased operational costs, unprofitable stores, financial challenges that compel the company to innovate successful strategies that can enable it to regain its market share (McDonald and Wilson, 2016). The competitors are offering similar products inexpensively with after-sale services that attract customers. Jamba company requires to formulate strategic tactics and plans that will enable it to compete favorably in a dynamic economic environment (McDonald and Wilson, 2016). Some of the strategies the company has been implementing to curb the stiff competition in the market are developing and expanding new stores, aggressive advertising to tap new markets, handling customer complaints and feedback, and initiating new alternative brand channels (McDonald and Wilson, 2016). Also, it has franchised more store stores and expanded its Menu. Jamba is striving to maintain its good reputation after allegedly misleading customers in its advertising and product promotion (McDonald & Wilson, 2011). In the advert, the company stresses that its smoothies’ ingredients contain a variety of fruits and vegetables, while in a real sense, the parts are inexpensive pear and white grape juices. The allegation acts as a strength to its competitors while it acts as a weakness to Jamba company. Evolving intense competition in the juice and beverage industry compels Jamba company to formulate workable strategies that will improve the company’s stock price, increase turnover, minimize operational costs, and persuade potential clients to purchase their products (McDonald and Wilson, 2016). Conforming to customers’ specifications in alignment with organizational goals will assist the company in getting referrals and maintain in mind loyal customers.

A brief overview of Jamba company

Jamba company started operating as a going concern business in early 1990 in San Luis, California. Kirk Perron was the original investor who engineered the inception of the company (“Jamba, Inc. Reports results for the first quarter of fiscal,” 2018). The smoothie company offers fruit and vegetable juices that are free from excessive calories and sugars. Whole fruit cuts are blended to make the smoothie juice, which is mostly preferred during the summer and warmer temperatures (“History of Jamba juice company – Funding Universe,” n.d.). Some of the fruit cuts used to manufacture the smoothie juices include Mango, passion, orange, strawberry, peach, and orange. The sauce is healthy for human consumption as it contains fruits that add the body vitamins A, Vitamin C, Vitamin E, proteins, and other vitamins that protect the body against diseases. Pineapple sherbet is a popular product that the company offers. Its ingredients, for example, include corn syrup, whey, partially sugar, milk, and a little water. Vitamins are essential to the human body as they perform numerous body functions. They contain minerals, fatty acids, and proteins that help the body function properly. Some of the body functions it performs include improving the body’s immune system, protecting body tissues, and managing metabolism.

Stiff competition compelled Jamba company to merge with some of its competitors to increase the market share. In 1999, the company acquired Zuka juice incorporation (“History of Jamba juice company – Funding Universe,” n.d.). The strategy targeted to improve sales, gain experienced human personnel, and minimize competition (McDonald & Wilson, 2011). Besides, the company was to enjoy the economies of scale benefits as the fixed costs were spread over many units produced. In 2006, Services Acquisition incorporation acquired Jamba company at a staggering figure of $265 million US dollars (“History of Jamba juice company – Funding Universe,” n.d.). The new business retained its name as Jamba incorporation. As a result, more capital was injected into the shop to improve its operational strategies. Some of the functional strategies that were boosted include; aggressive marketing, research, and design teams to unravel new markets, increase the distribution channels, more franchising businesses established and, raising the product range (McDonald & Wilson, 2011). In 2016, the company transferred its headquarters to Frisco, Texas, citing high costs incurred in running a business in San Francisco Bay. In 2018, Atlanta-based company acquired Jamba company. Despite the increased costs, declining market prices, and intense competition, Jamba company can regain its market share and tap new markets domestically and internationally.

Mission Statement

The Jamba incorporation mission is Accelerating the growth and development of Jamba as a premier healthy, active lifestyle brand (“Jamba juice mission, vision & values,” n.d.)

Vision Statement

To be the defining lifestyle leader in the smoothie and juice category (“Jamba juice mission, vision & values,” n.d.)

Strategies

Leadership categories

Good governance is critical to Jamba’s company to achieve its mission while adhering to its mission statement (“Jamba, Inc. Reports results for the first quarter of fiscal,” 2018). The company requires to observe ethical values as it engages in production processes, and restrain from misleading false advertisements. Examination of customers’ complaints depicts that the company participates in exaggerated product promotions that are false. They allege the whole fruit smoothies is prepared using pineapples and grapes fruits while in the advert, and the company purports the smoothie contains, Mango, orange, peach, orange, and passion which have low contents of sugar and calories (“History of Jamba juice company – Funding Universe,” n.d.). Grapes and pineapples contain a high content of sugar and calories. These allegations create doubt in trusting Jamba company products. Leaders’ decisions are crucial in driving the company plan and goals. They should prove to be trustworthy and honest to gain customer confidence and conform to ethical standards they have labeled in their products.

Jamba company should implement good governance to ensure the employees conform to the clients’ expectations. Customer dissatisfaction is one of the critical factors that compel them to divert loyalty to the company competitors. The organization needs to define the explicit purpose of its operation to the employees. The production supervisor needs to ensure the production ingredients used to make smoothies are correct. Right ratios should be used to ensure the product meets customers’ requirements and expectations. The company should encourage leadership that recognizes high performing employees. Employee recognition results in obtaining the best from their intellectual abilities. They will be self-driven and seduced with successful results. Motivated employees usually exceed their weekly and monthly targets as they are able to produce quality goods, integrate technology in distribution and manufacturing, select competent people, and minimize the operational costs that supersede the company’s net profit. When the company makes losses, investors receive inadequate regular bonuses and dividends periodically.

Branding of the products

Product distinction and unique triggers a company to perform branding (Huang and Sarigöllü, 2014). Branding is a marketing strategy that distinguishes a company’s products from those of the competitors. For example, formulating a unique symbol, Logo, design, and name that identifies the product to Jamba company (Huang and Sarigöllü, 2014). Ares that necessitates branding in Jamba company includes a variety of stores, customer service, goodwill, product promotion, advertising, and on the Logo of the company. Jamba company has done aggressive advertisements on social media, newspapers, brochures, flyers, websites, and henceforth (Ansoff, 2016). Customers have complained about the reliability of Jamba’s advertisement in the website that highlights the ingredients used to make the smoothies. The company needs to adhere to its principles and produce juices that meet customer expectations (Ansoff, 2016).

Jamba company will get more benefits if it is consistently continuous in branding its products. The Logo will help the consumers identify Jamba products from those of its competitors. It improves the business value in the economic market hence appealing to the customers (Lemon & Verhoef, 2016). Moreover, branding creates new demand for Jamba products. Since its inception, the Jamba company changed its name from juice club to Jamba company. These strategies motivate employees as they work hard to deliver quality products that meet the customers’ needs. Finally, branding creates loyalty and referrals to existing and appeals to potential customers to buy company products in the market (Lemon & Verhoef, 2016). The company should advertise its wide range of products, for instance, vegetable juice, smoothie juice, fresh juice, yogurt, salads, flatbread sandwiches, hot oatmeal, and organic coffee (“History of Jamba juice company – Funding Universe,” n.d.). Advertising using mass media and social platforms will attract more potential customers to be aware of the products while informing loyal customers that the product is still the product.

Market Segmentation

Market segmentation is a proficient tool that will assist the Jamba company in classifying customers regarding their needs in the juice industry, thus depicting a critical role in the market analysis (Wedel & Kamakura, 2012).  Division of the markets domestically and internationally will assist Jamba company in locating markets and identifying customer needs. The research and marketing team can clearly understand the specific needs of customers in a particular area, thus formulating plans and strategies aligned with customer needs and specifications (McDonald et al.,2012). Jamba company should produce smoothies according to its advertisement. The smoothie juice ingredients should contain over five whole fruit cuts as it has advertised its product. The vegetable juice should also provide adequate kales, ginger, banana berries, and henceforth in compliance with its advertisement (“History of Jamba juice company – Funding Universe,” n.d.).

Marketing segmentation can also help the company to utilize its raw materials while increasing profitability (McDonald et al.,2012). A different group of customers desires different ingredients of the smoothie of the products. Jamba company has diversified its product line as it has expanded its products. The company runs a beverage bar that was launched in 2015. It has also expanded its Menu as it has introduced milkshake, organic coffee, oatmeal, yogurt, vegetable salads, fresh juice, and flatbread (“History of Jamba juice company – Funding Universe,” n.d.). This strategy helps the company persuade new customers and spread the business risk over a wide range of its products (McDonald et al.,2012). Jamba company products will be highly competitive as the customers will have a variety to select from, consequently, catering to the needs of its customers in different locations globally. Most businesses have integrated market segmentation as it traces the needs of a particular niche and strives to produce products that align with their specification (McDonald et al.,2012). Finally, market segmentation improves sales as the company can persuade potential customers to purchase the company products.

Cost Cutting

Jamba company aims to meet its short term and long term financial obligations as it strives to realize its vision. In 2016, 2017, and 2018 fiscal year, operational costs were more than total revenues collected from all Jamba company revenue-generating activities while the previous year’s 2015, 2014, and 2013 financial years, the company made profits (See Appendix A for more information on the operational cost). Cost regulation results in the optimum utilization of scarce economic resources used in the production of juices and beverages (“Jamba, Inc. Reports results for the first quarter of fiscal,” 2018). Jamba needs to integrate modern technology that enables the company to be capital intensive instead of labor-intensive. It should install more machines and equipment used in blending, sorting, and packing the juice products (“History of Jamba juice company – Funding Universe,” n.d.). The company also needs to negotiate with vendors who will supply the products at an affordable price. The procurement department should advertise its tendering process of acquiring raw materials (Hill, 2017). This will allow the company to contract suppliers who avail of quality products at an affordable price.

Due to increased distribution and transportation costs. Jamba company needs to franchise more businesses to produce and sell the products using its name, thus minimizing the distribution cost. The company needs to outsource some of its operational activities, domestically and internally. These will help the company concentrate on significant events that are essential in generating more revenues and profits (Wedel & Kamakura, 2012). Some of the company’s activities it can outsource distribution function, information-gathering function, research and design function, and marketing and promotion function (Wedel & Kamakura, 2012). The company should also monitor its overhead costs to curb the unnecessary costs that do not contribute to the creation of goods and services. Cash flow statement, comprehensive income statement, balance sheet statement should be audited to ensure the reports are true and fair of its activities. Independent audit firms and peer reviews of financial statements should be integrated to ensure there are no errors and fraud in the income statement. They will ensure there are no ghost workers in the pay-roll, no pilferage in stock, and check if the company protects its assets as required in the company’s policies.

Expansion and Growth

Businesses strategize to be relevant in a competitive market as they engage in many activities to maintain loyal customers and persuade potential customers to buy their products. Some of the operational tactics that Jamba has integrated are acquiring major competitors, diversification of product lines, franchising of many business stores, and acquisition of the company to increase market share in various market destinations (Hill, 2017). In 1995, Jamba company transformed its name from Juice club to Jamba company. The business had started expanding, and many competitors had begun penetrating the market. In 1996, the company had over 30 stores in California as it continued to grow and capture the local market. Jamba company signed a licensing agreement with the whole food supermarket to sell juices in the supermarket in 1998. The company launched Jambola bread in 1998.

Moreover, in 2006, Service Acquisition corporation international acquired Jamba company for $ 265 million; however, the business retained the name Jamba company (“History of Jamba juice company – Funding Universe,” n.d.). The main intention of the acquisition was to gain adequate capital to enable the company to open new stores and market its products domestically and the international market. In 2015, the company launched an innovation bar that will tap new customers who like watching games while entertaining themselves (“History of Jamba juice company – Funding Universe,” n.d.). The portfolio appeared promising at the start but failed to go beyond the break-even point as the innovation beverage bar was closed for in 2017. The bar was designed Wi-Fi that enabled clients to browse while waiting for their desired drinks that were being prepared according to the customers’ specifications. Operational costs exceeded the revenues generated from the project (“History of Jamba juice company – Funding Universe,” n.d.). This triggered the closure of the business to minimize profit deficits that were encountered. Jamba company has experienced a continuous decline in revenue since 2013(see Appendix B for more information on revenue performance). Finally, Atlanta company focus brands acquired Jamba company. The objective was to inject more capital into the business to meet its short-term and long term financial obligations. Series of mergers and acquisitions have enabled Jamba company to survive in the market and counter intense competition from its clients.

Analyses

McDonald SWOT Analysis

The SWOT analysis diagram presents the advantages and disadvantages of the internal and external business environment (McDonald & Malcolm, 2017). It arranges business strengths, weaknesses, opportunities, and threats.

Strengths

Although there is stiff competition experienced in the juice industry, Jamba company has more pros than its competitors. The company has been in operation for over 29 years in the market. It started its process in 1990 when there was less competition in the market. Its brand is leading in the market compared to most of its significant competitors McDonald’s and Starbucks. The company has engaged in numerous occasions changing the Logo, product design, and advertising to distinguish its products from those of the competitors (Wilkinson, 2013). It also has a significant market share compared to its opponents. The company has a broad market in Asia’s economy. Most of its market destinations in Asia include the Philippines, Bangladesh, Taiwan, South Korea, Dubai, and henceforth to mention a few. The broad market enables the company to produce more products leading to improved profitability and expansion in its size (McDonald & Malcolm, 2017).

Moreover, the company has widespread franchising and owned stores in many geographical areas. It has stores domestically and in other countries where they have a strong customer base. It has also expanded the Menu to attract evolving customers. These led to the introduction of fresh juice, yogurts, salads, organic coffee, flatbreads sandwiches, Jambola bread, to mention a few. The company has also signed a license agreement with the whole food supermarket where it sells its products. Target customers can easily access their products in the supermarket as they purchase other products. Jamba company has also signed business deals to acquire major competitors and being acquired. It received the Zuka juice company in 1999 that was its primary competitor at that time. Service Acquisition corporation acquired Jamba company in 2006 but retained the name. Focus brands company acquired Jamba company in 2018 and still retained its name. These acquisitions and mergers help Jamba company expand its businesses as it receives adequate capital that is used to increase production, research and design activities, marketing activities, an increase of stores, and installation of new technology that enables fast service delivery (Wilkinson, 2013).

Weaknesses

Despite the many advantages attributed to the company in the juice industry, Jamba company has encountered challenges. In 2018, a customer filed a complaint in court, challenging the company’s ingredients in the manufacture of the smoothie juice. According to the advert on the company website, the company prepares its smoothies juice using whole fruit cuts of Mango, banana berry, strawberry, peach, orange to produce the sauce (“History of Jamba juice company – Funding Universe,” n.d.). The customer claimed the company vision is to keep the body healthy while consuming healthy drinks, which contains less sugar and calories. The customer alleged that the company uses pears and grapefruits to produce the juice. The report shows that grapefruits contain a high content of sugar and calories. The plaintiff claimed that the company contrasts its vision as it offers products rich in sugar and calories contents. The company should observe ethical values and avoid misleading advertisements. When profitability is high, most businesses focus on quantity instead of quality to meet the demands of rising customers (McDonald & Malcolm, 2017).

Jamba company has also encountered shortages and stock out problems when the products are needed. Despite the expanded Menu, customers miss the product of their choice as the raw materials used to manufacture the fruits are inadequate or missing (Hill, 2017). Smoothies are produced using ripe fruits. The cultivation of these fruits varies with the climatic change. When the climate is unfavorable, the agricultural produce is low. This results in excess demand for the fruits compared to the supply of the fruits in the market, thus causing an increase in the price of the inputs and outputs of the products (Wilkinson, 2013). When the product’s price increases, its supply increases while the demand declines tremendously as few clients are able and willing to purchase the products (Hill, 2017). Company turnover declines as the customers divert to competitors’ products, consequently leading to profit deficit and reduction in the market share (McDonald & Malcolm, 2017). Jamba company also faces the challenge of storing its raw materials and finished. The products are perishables and require immediate markets since they cannot be stored for more extended periods as they will go rancid quickly.

Opportunities

Jamba company has many opportunities that are untapped in the market. The company requires to increase investment and product promotion activities globally to ensure customers are aware of the existence of their products (Wilkinson, 2013). The company has opened over 80 stores in the Dubai market recently. An increase in population globally provides an adequate demand for the company product. The company needs to use social media platforms, for instance, YouTube, LinkedIn, Facebook, and henceforth to advertise its products. Mass media platforms, to illustrate, use of emails, digital televisions, electronic newspapers, electronic magazines, and electronic books can be used to disseminate crucial information about the company products. The company has built an excellent reputation since its inception in 1990. Its brand is famous and appreciated as many capable and willing customers to purchase the company products.

Threats

World pandemics have negatively affected the business operation and distribution of goods and services. Covid-19 has caused harmful restrictions as the movement restrictions of its products to cripple the global market. The company has faced challenges in distributing products to foreign markets as all movements have been halted due to the continuous spread of the covid-19 virus. Some employees have feared to report to work and provide their expertise in the production process due to the impact the disease it causes to humans. The company has halted production in most parts of its stores to avoid losing workers who succumb to the deadly effects the disease causes to the human body leading to death. Most of the company suppliers have halted the business while waiting for the covid-19 situation to be managed then resume the activity. The company has also received stiff competition from its significant competitors, McDonald’s and Starbucks companies.

Porters five forces Analysis

Jamba company uses the porter’s framework to evaluate its competitive advantage and disadvantage in the juice industry and beverage industry (Dobbs, 2012). The correct examination of the model shows the going concern of the company as well as predict the future cash flows (Dobbs, 2012). First, the company faces threats from the existing businesses that offer similar products, for instance, McDonald’s, Starbucks, and other small retail businesses providing the same products. Jamba company is required to increase branding activities to distinguish its products from the intense evolving competition (Dobbs, 2014). It needs to invest many resources in advertising, product modification, and differentiation. The company needs to integrate market segmentation processes that will enable it to tap new markets in different geographical areas (Ansoff, 2016). This will increase the customer base as the company will increase its product sales in different geographic regions, both locally and internationally. Customers will be able to distinguish the company products from those of its competitors as the products have unique logos and designs (Ansoff, 2016).

Although there are many benefits attributed to porters’ five forces, the framework faces various limitations in practical application in Jamba company. The model presents an inadequate depth of data that can be used to arrive at the right decisions that can help the company achieve its vision (Dobbs, 2014). The model presents incorrect data and baseless evaluation that can be relied upon to predict and estimate future business cash flows (Dobbs, 2014). Most of the management teams have inadequate skills on the way to analyze the porter’s model and convert it into a strategy. In addition, the framework focusses mainly focusses on the sustainability of a business in a competitive environment instead of availing strategic skills on how to outshine competitors effectively in the juice industry (Dobbs, 2014).

Value Chain Analysis

Value chain analysis helps the business to locate sections that can regulate its costs and services to outperform its competitors in the industry. The critical elements in value chain analysis are cost leadership, differentiation, and customer focus.

Cost leadership

Jamba company should ensure it minimizes its costs and operates at minimum expenses as possible. The strategy can be achieved as the company has a broad customer base with an expanded market share. A large market enables the company to produce in many large units since the market is available.  Large scale production increases the variable cost while it minimizes the total cost and the fixed cost. In economics, when a company accrues to the economies of scale, the fixed cost is spread over the large volume of variable costs produced. Jamba company needs to reduce indirect costs that raise the production cost. The company should acquire the raw materials at a lower price as it buys the inputs on a large scale. The company should seek fair trade and quantity discounts as the company buys large volumes of inputs compared to its inputs.  The company should also examine direct labor, direct expenses, and direct raw materials to ascertain skills to coordinate and combine the processes and systems to obtain the desired output. This requires efficient auditing and accountability in each department of the Jamba company. The management of the company should embrace a check and control environment that ensures the company products and resources are protected carefully.

The company should also analyze the resources diverted to research and development teams, providing customer services, marketing and sales team, and promotional and advertising teams. Optional activities should be unraveled in value chain evaluation to enhance efficiency while maintaining quality and increasing the quantity produced (McDonald & Malcolm, 2017). This enables the company to set low selling prices comparing to its competitors, thus preventing new competitors’ entrants into the market while driving out the existing competitors drastically (Wrenn & Mansfield, 2014). Persistent and consistent advertising enables customers to receive information that their preferred choice product still exists.

            Differentiation of the Company Products

Differentiation distinguishes the company’s products from those of its competitors (Khan, 2014). Jamba company should recognize its product from those of its competitors to receive price premiums compared to those of its competitors. The company should produce quality juice that is healthy and appealing to most clients (Khan, 2014). It should also diversify its production lines to spread the business and market risk. The company should emphasize in installing modern technology systems in all production and distribution chain to reduce total cost, waiting for cost, and the service cost that triggers customers’ complaints when services are delayed (McDonald & Malcolm, 2017). More resources should be diverted to creativity and innovation to ensure that company is able to differentiate its products and avail them to the market at an affordable cost. Employees should confirm customer expectations as a result offering quality and fast service to customers without complaints. A good customer experience creates more customer referrals, thus leading to improved market share and competitive advantage compared to its competitors (Lemon & Verhoef, 2016). These strategies improve the business image and maintain loyal customers to the business.

Customer focus

Customer focus strategy defines the specific requirements of customers and potential customers to a particular group of customers or market niche (Lemon & Verhoef, 2016). Jamba company should divide its market into segments and analyze the need of the customers in each section (Khan, 2014). For instance, some people prefer vegetable juice, while others prefer smoothies, milkshake, and other related products. The company should analyze which products are mostly preferred domestically and international markets, especially in Asia, where market share is expanding continuously (Lemon & Verhoef, 2016). A well-executed focus strategy where the substitutes are inferior and the competitors are weak results in regaining the market share while driving out the competitors and preventing new business entrants into an industry (Lemon & Verhoef, 2016). This results in increased sales and profitability hence maintaining a competitive advantage against its competitors.

Relevant answers to the asked questions

How should Jamba Juice Company compete?

Using the results of SWOT analysis, porters five forces analysis, and the value chain analysis, Jamba company needs to integrate the following tactics to compete favorably, for example, continuous acquisition and mergers, product branding and differentiation, and cost-cutting.

Acquisitions and Mergers

Financial stability is the critical factor in ensuring the survival of a company when its stiff facing competition from its competitors. Jamba juice acquired its major competitor Zuka juice company in 1999 to reduce competition while expanding its market shares to different geographical areas (“History of Jamba juice company – Funding Universe,” n.d.). The licensing deal with the whole food supermarket enabled the company to advertise its products while increasing its sales and services. The franchising of its business stores globally empowers the company to minimize the distribution and manufacturing costs. Outsourcing part of their operational functions to other market destinations where the cost of production is inexpensive compared to the domestic market in the united states of America (McDonald & Malcolm, 2017).

Service Acquisition corporation international acquired Jamba company in 2006, leading to increased financial power to enable the company to increase its production size (“History of Jamba juice company – Funding Universe,” n.d.). The availability of adequate financial resources allows the company to meet its short-term and long-term financial obligation. Jamba company will be able to ascertain the right balance between equity and debt financing methods (McDonald & Malcolm, 2017). Substantial acquisitions have injected adequate capital that is used to improve business distribution methods, searching for new markets globally.

Product Diversification and Menu Expansion

Jamba company should expand the diversity of its product. In 2015, the company introduced an innovation that sold many varieties of foods, including the hummus toast served with vegetables, potato chips, quinoa bowls, and type of vegetable fruits (“History of Jamba juice company – Funding Universe,” n.d.). The project failed to fulfill investor expectations. Jamba company should reconsider opening the company and extend its future cash flow (Ansoff, 2016). The marketing team, research, and design team and sales team need to reconsider the portfolio to strategize how it should be implemented to arrive at break-even point quickly (Bacon, 2016). The company should revise expanding the new Menu of fresh juice, yogurts, salads, flatbread sandwiches, hot oatmeal, and organic coffee. The strategy will tap more customers in addition to the existing ones (Bacon, 2016). Branding of the company products in quality, consistent informing clients, increased market analysis would improve the sales.

What Are the Key Forces in the General that Affect Jamba Juice’s Choice of Strategy?

Evolving and Existence of Stiff Competition in the Market

Jamba company offers similar products with its major competitors; McDonald’s and Starbucks. Both companies are strategizing on methods of outperforming their opponents (Ansoff, 2016). This forces the Jamba company to engage in product modification, product design, and introduction of different product lines to counter the competition (Ansoff, 2016). The company invests many resources to the research teams to unravel the available strategies to integrate to outshine the competitors. This results in increased production, cost, leading to increased selling product prices (McDonald & Malcolm, 2017). Jamba Company can also over differentiate its products to the customers who might not be attracted to the newly developed changes and features.

High Operational Costs in Other Markets

The company has experienced difficulties in expanding the business due to high operational costs. Some of the expenses that discourage growth and expansion of the market are the rent rates, federal taxes, staff salaries, consultant fees, and rising advertising costs (McDonald and Wilson, 2016). The company also faces challenges in payments of overhead expenses, including indirect labor, power bills, distribution costs, and advertising costs. The company is required to recruit a robust sales force people to market the company products to various market destinations areas (Lemon & Verhoef, 2016). This forces the company to company to incur a lot of financial resources.

Political instability in international markets

Jamba can expand the market of its products to different nations globally. The primary issue is that most foreign market countries are facing civil and international wars periodically (Lewis, 2017). The system of governance in those countries does not support a favorable environment for businesses to operate freely. Civil wars result in violence with a robbery where people attack business enterprises and steal the products available (Lewis, 2017). This scenario restrains Jamba company from opening stores to countries that have political stability. Countries like the United States of America do not have good relationships with some Middle Eastern countries, for instance, North Korea and Iran (Lewis, 2017). These companies restrain themselves from products that originate from the united states of America.

What Internal Resources and Assets Does Jamba Juice have that May Give it a Competitive Advantage?

            Jamba company has been in the juice industry in three decades. It has many interconnected networks where the company can get its market (“History of Jamba juice company – Funding Universe,” n.d.). The systems are local and international markets in the Philippines, South Korea, Bangladesh, and Taiwan. The brand is leading in the market as the company keeps on expanding the stores domestically and internationally markets (Lu & Zhao, 2006). It has over 800 stores globally and operates in over five countries in Asia. The company has built a strong reputation in the local market and the international market. Before the global economy started experiencing financial challenges, Jamba company was making huge profits (McDonald & Malcolm, 2017). The company started experiencing a decline in revenues from 2016 when some of its stores became unproductive. Jamba company has opened over 80 new stores in Dubai. This enables the company to have a broad market compared to its competitors.

Sufficient fixed assets and revenues enable the company to run its businesses effectively. In 2018, Focus brands company acquired Jamba company. The acquisition resulted in the injection of adequate financial resources to project portfolios that are not performing. The company has sufficient financial resources that will enable it to rebrand its products, search for new markets internationally while maintaining the existing customers (Huang and Sarigöllü, 2014). Diversification of its products and expansion of the Menu assist the company in generating revenue despite the falling economy (Lemon & Verhoef, 2016). The fixed assets facilitate the company to avail goods to its retailers, owned and franchised stores globally.

Conclusion

Jamba CEO and managers formulated strategies and tactics that the company should execute to regain its declining market share and profitability. Analysis of porters five forces, SWOT analysis, and value chain analysis of Jamba company depicts the feasible strategies that the company needs to integrate to increase its market share and tap new markets locally and globally. The company has expanded its product lines, for instance, the expansion of the Menu to improve the business risk. It also launched an innovation bar in 2015 which failed to penetrate in the market. The project was shut down entirely in early 2017 due to operational costs exceeding the surplus received from the project. Jamba company has consistently signed business mergers and partnerships to enable it to have a competitive advantage in the juice industry. The management team should strive to improve the company earnings in a recession economy.

Recommendation

Jamba company needs to franchise undeformed stores to enable it to collect some cash that would be used to finance highly performing stores in other geographical regions. The company should also minimize the operational costs, for example, by reducing the number of employees and investing fewer resources in all unprofitable stores. The marketing and research teams should continue searching for potential customers while maintaining existing customers. The company should also confirm customers’ expectations and specifications for the company to get more referrals from loyal customers.

References

Ansoff, H. I. (2016). Strategic management. Springer.

Bacon, J (2016). B2B brands shift to focus on customer experience. Marketing Week.

Chenhall, R.H., and Moers, F. (2015). The role of innovation in the evolution of management accounting and its integration into management control. Accounting, Organizations and Society, 47, pp.1-13.

Dobbs, E (2012), ‘Porter’s Five Forces in Practice: Templates for Firm and Case Analysis,’ Competition Forum, 10, 1, pp. 22-33, SPORT Discus, EBSCOhost, viewed April 24 2018.

2018. Dobbs, (2014) ‘Guidelines for applying Porter’s five forces framework: a set of industry analysis templates,’ Competitiveness Review, 1, p. 32, Emerald Insight, EBSCOhost, viewed April 23 2018.

Hill, T. (2017). Manufacturing strategy: the strategic management of the manufacturing function. Macmillan International Higher Education.

History of Jamba juice company – FundingUniverse. (n.d.). Search Thousands of Company Profiles – FundingUniverse. https://www.fundinguniverse.com/company-histories/jamba-juice-company-history/

Huang, R., and Sarigöllü, E., (2014). How brand awareness relates to market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer, New York, NY.

Jamba juice mission, vision & values. (n.d.). Comparably. https://www.comparably.com/companies/jamba-juice/mission

Jamba, Inc. Reports results for the first quarter of fiscal 2018. (2018, June 26). https://www.businesswire.com/news/home/20180626006445/en/Jamba-Reports-Results-Quarter-Fiscal-2018

Khan, M.T., (2014). The concept of the marketing mix and its elements (a conceptual review paper). International journal of information, business and management, 6(2), p.95.

Lemon, K, & Verhoef, P (2016). ‘Understanding Customer Experience Throughout the Customer Journey’, Journal of Marketing, 80, 6, pp. 69-96.

Lewis, J. (2017). Social impacts of corruption upon community resilience and poverty. Jamba: Journal of Disaster Risk Studies, 9(1). https://doi.org/10.4102/jamba.v9i1.391

Lu, H., & Zhao, L. (2006). Integrating GIS and BCG Model for Marketing Strategic Planning.

The 11th Annual Conference of Asia Pacific Decision Sciences Institute. Hong Kong.

McDonald, Malcolm. (2017) Malcolm McDonald on marketing planning: understanding marketing plans and strategy. London, Kogan, Page.

McDonald, Malcolm; Dunbar, Ian (2012) Market segmentation: how to do it, how to profit from it. Wiley-Blackwell.

McDonald, M. and Wilson, H., (2016). Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.

McDonald. and Wilson. (2011) Marketing Plans how to prepare them, how to use them. Wiley, Sussex.

Wedel, M., & Kamakura, W. A. (2012). Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media.

Wilkinson, F. (Ed.). (2013). The dynamics of labor market segmentation. Elsevier.

Wrenn, B. and Mansfield, P.M., (2014). Marketing planning guide. Routledge.