Strategic Planning Project

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Strategic Planning Project

2.0. Situation Analysis

The article focuses on the analysis of Jamba Juice organization that operates in 26 U.S. states and over 80 operating shops spread across the U.S., as well as, South Korea, Canada, Taiwan, Bahamas, Mexico, and the Philippines. The spread to these countries is a strategic move to expand the customer base of the company’s products (Nickols, 2016). Also, the emphasis on maintaining high health standards in their products gives the company a competitive advantage in marketing and selling of their products. The Jamba Juice Company entails a chain of restaurant retailer stores with its headquarters located in Frisco, Texas, United States. In addition to the international stores operated by Jamba Juice, there are 517 franchise-operated stores and 287 company-owned locations associated with the Jamba Juice Company.

The situation analysis of Jamba Juice entails the extensive investments required for the company to improve its operations and competitive industry. The diversification of fast-foods industry demands continuous innovation be put in place to maintain the company’s growth. Also, Jamba Juice ought to create new alternative products or mechanisms to ease their marketing strategy. In turn, increase the customer base across various regions and assert its strong brand in offering healthy products to their consumers.

2.1. Market Summary

Over the years, Jamba Juice Company market has significantly expanded increasing the volume of sales that the company makes. The increase is owed to the company’s implementation of strategic plans such as acquisitions and mergers with other companies. For example, in 2003, Jamba Juice agreed to be acquired by Services Acquisition Corp. International for a whopping $265 million (Jambajuice.com, 2017). With better market access, Jamba Juice agreed on a conversion of the stock transaction under the name Jamba, Inc. earning the company $35.0 million in profits. These sums of money improved the resource base for the company to engage the market efficiently and improve the quality of their products and services.

Additionally, to exert a firm footing on the market, in 2008, Jamba, Inc. started a strategic plan to transform the company from smoothie shop to include a variety of other products such as salads, sandwiches, flatbreads, and wraps. As well, Jamba Juice maintained a strong advertisement program to create awareness of their products and acquire more customers in the process. A significant move that saw the company transform its clients base profoundly entails the partnership with Nestle in December 2007 that saw the company lend its name to a new line of health ready-to-drink beverages. The beverages were to be sold under Jamba brand intensifying the market footing and popularity of Jamba Juice products.

2.2. SWOT Analysis

The Jamba Juice SWOT analysis is a critical entity to the development a strategic planning project for the company. Analyzing the company’s strengths, weaknesses, opportunities, and threats provide a better understanding of the company. In turn, this gives a rare opportunity to manage company resources efficiently and serve higher purposes that can elevate the company’s performance to higher levels.

1. Strengths

The Jamba Juice Company has extensive strengths that facilitate the company’s better performance in the industry for so long. The company operates in over 850 locations in various states in the U.S. and extensive reach to other countries including Canada, Mexico, Philippines, Taiwan, Bahamas, and South Korea. This significantly expounds on the brand popularity and high market footing in American and Asian markets. The approach to offer healthy concerned products gives the company’s brand a high standard to the millennials that are highly interested and aware of the health issues to put into consideration in their eating habits (Grabowski et al., 2017). The acquisitions, mergers, franchise, and partnerships have enhanced Jamba Juice Company to grow very fast becoming one of the top competitors in the industry. Also, the extension from smoothies shop only and the introduction of new variety brands gives the company a competitive advantage in the industry selling fruit juice and other food items healthy for consumptions.

1. Weaknesses

Over the years of operations, Jamba Juice Company has faced various challenges affecting its operations. For example, in 2009, the company promoting its new line of products was criticized for running an advertising campaign that does not meet the standards of their consumers termed as a “rip-off.” The primary product entailing the smoothies has recently come under fire for not meeting the essential ideal health contents subjecting the product to the reservation. As well, Jamba Juice leading competitors including Smoothie King and Planet Smoothie overtake Jamba Juice in terms of sales surpassing their resources base to expand to new products.

1. Opportunities

The company ought to take into consideration creating more health awareness in America and Asian markets that they have already set foot, and exploit Jamba Juice as the most preferred brand (Clayton, 2006). The customers ought to be made aware of maintaining the loyalty to Jamba Juice products, thus, using various avenues like sponsoring sports, parties, and shows to reach out to a large pool of customers, as well as, raise health consciousness among many customers. Also, expansion to new regions such as Latin America, Caribbean, the Pacific, and Africa gives the company a great opportunity.

1. Threats

The primary threats to Jamba Juice Company products and introduction of a new line of items comprise of the stringent U.S. food and drug regulations that deter the introduction of new products. As well, the increase of competition from other strong international and local brands pose a significant threat to Jamba Juice struggles and strategy implementations. The ability of the company to expand effectively in various regions is undermined by the value of real estate rising to untenable levels making new investments hard to sustain due to operating costs.

2.3. Competition

Jamba Juice Company is working in the line of providing healthy food items and drinks faces stern competition from other strong international players such as Star Bucks, Planet Smoothie, Smoothie King, and Maui Wowi. These companies pose a significant challenge to Jamba Juice to overtake in wooing the customers that already trust and consume the products from these businesses worldwide. The competitive value caused by a company such as Star Bucks is based on the customers reach globally, sales volumes, and financial resources for the companies to implement the successful strategic plan (Hill et al., 2014). The competition against Jamba Juice is one that is posed by International companies with bases in various parts of the word.

Therefore, for Jamba Juice Company to intensify its competitiveness, the company has implemented strategic plans to allow transformation of the company by acquisitions, mergers, and strategic partnerships. For example, the strategic partnership with Nestle elevated the company’s brand on drinks and beverages by building on Nestle’s customer’s base.

2.4. Product Offering

The product offering for Jamba Juice has been a key feature to elevating the company’s performance in the industry. This entails the significant upfront of the introduction of Fresh Juice Menu that involves making of juices blended from fresh ingredients and organic ones that offer high health standards such as beets, ginger, and kale. The extension of products covers a diverse product introduction to the market increasing the items the company produces for its customers (Dess et al., 2014). The innovative level of Jamba Juice is categorized to the companies emphasizes o products that consider human health and assert the importance of providing products that help keep the consumers safe from health issues.

2.5. Keys to Success

The Jamba Juice operations have been facilitated by key success factors elevating the company’s performance among other strong and Internationally operating companies like Star Bucks and Smoothie King. Jamba Juice Company’s plan to open more stores in the United States and other places that it has already established basis is a key success factor which elevates the customer base and products diversity (Clayton, 2006). Also, the emphasizes on franchise management and acquisition is a key selling point that drives the success of the franchise. Additionally, the strategic partnership has served Jamba Juice efficiently by improving its competitive advantage in a highly transforming fast food, drinks, and beverages industry. The global store’s expansion strategy presents the company with the major success ingredients. As well, expanding the customer base creating more awareness of the company’s products and strong global brand.

2.6. Critical Issues

Finally, the key issues noted in the strategic planning of Jamba Juice is the company’s ability to handle its competitors while effectively introducing creative and innovative measures of products quality. The approach to gaining competitive advantage is critical to Jamba Juice’s development of a strong brand than relying on strategic partnerships and acquisitions. As well, the company must consider seriously expanding to other regions to increase its total sale volumes to advance the company’s financial capacity to engage in new fronts of serving its customers right.

 

 

References

Clayton, P. (2006). Jamba Juice issues alert regarding strawberry smoothies. Jamba Juice, San Francisco, CA. Online. Available at http://www. jambajuice. com/alert/faq. html. [Retrieved January 2007.].

Dess, G. G., Lumpkin, G. T., & Eisner, A. B. (2014). Strategic management: Text and cases.

Grabowski, R. J., Harrington, J. P., & Nunes, C. (2017). Valuation Handbook-US Guide to Cost of Capital. John Wiley & Sons.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.

Jambajuice.com (2017). Retrieved from http://www.jambajuice.com/

Nickols, F. (2016). Strategy, strategic management, strategic planning and strategic thinking. Distance Consulting LLC, 1-8.