PORTER’S ANALYSIS New Entrants: In general, there are few barriers to entry in the smoothie industry, which would make this force very strong. • Economies of Scale: There are no considerable decreases in average costs as output increases. Smoothies are generally high margin products, which means that new companies could be profitable without having to sell too many products. • Capital Requirements: In the smoothie industry, there are few fixed assets that would need to be purchased in order to operate. Therefore, new companies could enter without needing large amounts of capital. • Product Differentiation: Although there is some level of differentiation among ingredients and flavors, predominant similarities exist among current products. New companies could …show more content…
Thus, these forces are very strong. • Number of Competitors: In the smoothie industry, there are a high number of competitors, many of equal size, which creates an intense rivalry. Smoothie King is the original smoothie chain and is high-priced and nutritional with strong brand recognition. Planet Smoothie is a mid-priced, high-quality, eco-friendly company that is constantly innovating. Maui Wowi is a franchise-based company that sells other beverages and foods in a variety of store formats. Other limited service restaurants do not focus primarily on smoothies, but do offer smoothies or smoothie-like options. • Rate of Industry Growth: It appears that enthusiasm over smoothies tapered out, so this market is not growing very rapidly, which leads to a more intense rivalry. • Product Characteristics and Diversity of Rivals: Besides flavors and ingredients, all smoothie companies have similar product offerings, which increases rivalry. Societal Environment: In general, these forces seemed to have some varying levels of impact at various stages in this company’s life
The Russian ice-cream industry has high economies of scale, and new entrants will be saddled with high start-up costs to open their production facilities. Also, product differentiation is high with a multitude of product varieties already available, and many well-established brands already in existence. This equates to the barriers to entering the ice cream market being high.
Unit 2 Assignment Hien Lam Kaplan University AB140 Introduction to Management Professor Sylvia DeAngelo January 25, 2016 Foundation of Management Sociotechnical theory, organizational behavior, quantitative management and systems theory are known as contemporary management approaches (Bateman & Snell, 2013). These four management approaches are essential in analyzing the different organizational environments, competitive environments, including internal and macro environment. They represent the cornerstones of modern management, and they keep close connection to the surrounding environment (Bateman & Snell, 2013). First, sociotechnical system focuses on creating the internal environment.
That is why the customers have a clear idea, of what the product is about. They know it’s different from what they have been consuming as ordinary milk ice creams. This is from where stems the primary competitive advantage that yogurtberry has over its competitors. Also, yogurt berry provides a whole new experience as customers. Customers
Companies have to understand the effect they have on the world.” (Chu / Fast Company,
Social Forces, vol. 91, no. 3, Mar. 2013, pp. 1057-84. Business Source Main Edition, search.ebscohost.com/login.aspx?direct=true&db=bme&AN=85655898&site=ehost-live. Accessed 23 Jan. 2018. Juzwiak, Rich.
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.
In order to stay competitive they needed to find a way increase their profit. Jamba Juice only offered cold drinks, so in areas with cold seasons, such as New York, they lose money during the winter months. McDonald’s offered smoothies for about one dollar less than Jamba Juice and Starbucks was well known for their adult coffee beverages, which gave them an easy way to enter into a market for children who already came to the store with their parents. With their higher profit margins, large fast food companies could use smoothies as a loss leader and cause Jamba Juice to lose their footing. As McDonald’s began to market their smoothies, it became clear that they were seeing Jamba Juice as a rising
3.0 Corporate Strategies 3.1 Corporate Image Strategy With a vision to bring extraordinary moments into ordinary days, Lazy Sundaes’ Corporate image will be centered around consistency, quality, and convenience. It is imperative that consumers conjure positive perceptions of Lazy Sundaes and its products when they are exposed to it. Building consistent marketing messages and superb user experiences must be at the core of all Lazy Sundaes corporate initiatives. Lazy Sundaes believes that ice cream sundaes are synonymous with relaxation and good times, so we want our strategy to reflect those beliefs. Once established, It is very difficult to change consumer perceptions.
Part A Macro environment is important factor affecting the development of enterprises. A macro environment is the condition that exists in the economy as a whole, rather than in a specific sector or region.(Macro Environment n.d.) Cultures, politics, technology, nature, economy and demographic are the six major forces in the company 's macro-environment.(Kotler & Armstrong 2014, p96) Political factors Political factors include government regulations and legal issues and define both formal and informal rules.(PEST Analysis n.d.) All the companies have to follow these rules.
These potential competitors represents the barriers to entry for instance, the requirement of a high venture, the processes set by the management and also a brand which is well-known by the public to reduce the intimidation set by potential competitors which are due to enter the market sooner or later. Seeing that chocolate is famous world-wide, the possibility for new companies to penetrate the market with new chocolate recipes that are able to capture the consumers’ hearts regardless of
The high cost of operating in this industry prevents many companies from entering the competitive arena. Last, these two companies engage in non-price product differentiation. Rarely will you see Pepsi attempt to undercut Coca-Cola in price. Instead, you see these companies use creative advertisements to compete (Neary
Flexible working hours helps guarantee the assigned work to be completed somehow. The employee can work extra hours to compensate for being unable to contribute to working full time on a particular day. This helps hike performance. Advantages and Disadvantages of Human Resource Practices.
Tasting Success Article Page 95 Discussion Questions Question 1 Which decisions in this story could be considered unstructured problems? And structured problems? Structured problem Can be defined as a straightforward, familiar and easily defined issue, and it is easily solved by the eight step-by-step process Identify a Problem, Identify Decision Criteria, Allocate Weights to the Criteria, Develop Alternatives, Analyze Alternatives, Select an Alternative, Implement the Alternative and Evaluating Decision Effectiveness. The issue as described in the article is the orange juice production and it is considered as a structured problem, and the way it is produced, its mechanism is responsible for the production as it is based on Coca-Cola’s mixture
1.2. Product Differentiation This refers to differentiation that aspires to make a product more attractive by contrasting its unique qualities with other competing products (Investopedia, 2015:1), as in the case of Coca-Cola, other soft drink brands. Successfully adopting this strategy would have a company gaining a competitive advantage, as the customer would then view the product as unique or superior. This is what coca cola has managed to do, and has managed to do it on a scale that is globally unique, and globally recognized.
Introduction Uniqlo is ranked as the 1st apparel brand in Japan (Fast retailing, 2014) and the 5th SPA (Specialty Store Retailer of Private Apparel) in the world (VFPress, 2012). The brand has demonstrated a strong development during the past years with around 818 stores worldwide, estimated at August 2015, (Fast retailing, 2014) and now, they are planning for an expansion to Vietnam market. This report will provide useful information which can be guidelines for Uniqlo’s strategy to enter a new market. The report covers four main parts: PESTLE analysis of Vietnam market; mode of entry suggestion; segments, targets and position process and 7Ps marketing mix. Question 1: