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					  Jamba Juice
External Analysis
       BUSA 499-02
     February 25, 2009
       Kristi Bruner
      Becca Crossen
       Kalia Hymes
       Steven Seeley
       Aaron Tumy
Introduction

        The hottest new distributor in the world of oatmeal is Jamba Juice. With new products
that offer “slow cooked, 100% organic oats, fruit topping and brown sugar crumble,” the
organization hopes to expand its product line from just the “leader in healthy blended beverages”
to foods as well (Jamba Juice). With more than 700 stores in the United States and goals to
expand abroad in the future, Jamba Juice is a significant competitor in the processed and
packaged goods industry. By researching Jamba Juice based on Porter‟s Five Forces and
conducting a P.E.S.T. analysis, it is evident that while the company may not be a powerhouse in
the industry, it still maintains a notable amount of the market. Also, despite the current economic
downturn, the company is working to maintain its competitive advantage and thrive where other
businesses are struggling.

Porters 5 Forces:

Suppliers

         The bargaining power of suppliers, one of Porter‟s Five Forces, can have a significant
effect on an organization. Suppliers hold power over a firm when they increase prices and reduce
the quality of their product and the firm cannot use their own pricing to recover these changes in
costs (Hitt, 52). Switching costs is defined in Investopedia as the “negative costs that a consumer
incurs as a result of changing suppliers, brands, or products” (Investopedia). Switching costs can
represent a variety of things: time and effort, cost in dollars, and any other negative effect
associated with switching suppliers (Investopedia). Companies that remain successful for many
years implement a strategy that makes it hard for buyers to switch from their product to
competitors (Investopedia).
         Jamba Juice requires fresh fruits, juices, dairy products, vitamins, and protein ingredients
in order to produce their smoothies (Jamba Juice). Their switching costs are low, because it is
easy for them to switch from one company of suppliers to another. The switching costs for their
customers are also low, because it is very easy for a customer of Jamba Juice to choose to go to
Starbucks or Orange Julius instead. There is not much of a monetary difference or extra effort
required for the customer (Hitt, 52).
         Jamba Juice has suppliers of all of the ingredients of their smoothies including the dairy,
fruits, juices, vitamins, and proteins. Their basic raw materials are fresh fruits and vegetables,
dairy products, and protein (Jamba Juice). Raw materials are defined in Investopedia as “A
material or substance used in the primary product or manufacturing of a good” (Investopedia).
Suppliers provide the raw materials to make the finished good.
         Jamba Juice offers real fruit juices and smoothies, breads, pretzels, and packaged snacks.
They offer juices such as orange, carrot, wheatgrass, lemonade, and many others. The packaged
snacks are made with natural ingredients as well as the smoothies. Splenda is used as a sugar
substitute because the company feels it is the best way to create “the best tasting lower calorie
smoothie” (Jamba Juice Hawaii). Jamba Juice says they only offer high quality smoothies,
therefore only the finest fruit and supplies are used. They do rely heavily on their suppliers,
especially those of fruit. They have a goal to provide high quality fruit that is consistent
throughout the year. When ordering fruit, they order a projected amount for the whole year at the
peak of the season for each specific fruit. The price of fruit is determined by supply and demand
and can vary greatly. Their growth plan for the future will force them to be more dependent on
global fruit suppliers in which the price varies even more due to natural disasters and economic
conditions (Jamba, Inc).
        Jamba Juice has high standards for their suppliers and does quality tests at the time of
packaging. The standards must meet or surpass the USDA Grade –A standards. Jamba Juice
flash freezes the fruit once it has met all standards, and the suppliers store it until it is ready to be
shipped to distributors. The nutritional supplements and snacks also have very high standards to
meet and all of these products are also shipped directly to the stores (Jamba, Inc).
        One of Jamba Juice‟s suppliers is Cleugh‟s Frozen Foods. They supply stores in the
Southwest United States, including Arizona, Nevada, and southern California. There was a recall
a couple of years ago about their frozen strawberries, but it has been resolved (Kendell). Jamba
Juice also has a partnership with Dole Food Corporation, forming JambaFruit. As a result, Jamba
Juice stickers can now be seen on Dole bananas. The partnership provides benefits two-fold for
Jamba Juice. Not only do they get a supplier, but they also receive publicity from the stickers on
the fruit distributed, etc (Charles).
        Once supplies are needed at a store the suppliers ship the supplies to the distributors.
Jamba Juice has a contract with independent distributors who dispense products from the
suppliers to the stores. A majority of their stores are located in California, which has lower cost
of goods sold than other states in the US. Southwest Traders Inc. is one of the distributors of the
proprietary products to the Jamba Juice stores (Jamba, Inc).
        Some of the key equipment necessary includes a centrifugal juicer, automated press
juicer, wheat grass press juicer, blenders, blender jars, stainless scoops, beverage cups,
refrigerator, dry storage shelving, washing and sanitizing station, and ice machine. Jamba Juice
came up with a system and store layout for smoothies that allows for quicker production. They
have a juicing system that dispenses 16 types of juices at one time. They offer four blenders,
which cut the blending time from 90 seconds to 45 seconds. They have a high-pressured washing
and sanitizing system that has “cut required labor by about 50%.” Their design and innovative
equipment has increased their service speed, making customers happier (Doty).

Buyers

        The concentration of buyers for Jamba Juice can be focused into two categories. The first
category is the consumers, which travel to the specific locations to purchase goods such as a
smoothie or oatmeal. The second grouping of buyers is the ones who choose to purchase a Jamba
Juice franchise (U.S.). The choice of franchising is slowly expanding from the United States to
the option to expand abroad. Jamba Juice owns 501 of their 707 companies, with the remaining
amount as franchised locations.
        The United States franchises are broken into “multi-unit” and “non-traditional” locations.
According to the Jamba Juice website, Jamba Juice‟s “multi-unit” franchises offer their buyers
the option to franchise multiple stores, with the exception of an “existing franchisee opening a
new store or renewing an existing franchise” (U.S.). “Non-traditional” buyers include colleges,
airports, hospitals, supermalls and “any other venue operated by a master concessionaire” (U.S.).
The buyers must decide which type of franchise they will invest in from the parameters of the
qualifications listed on the Jamba Juice website. The buyer power will become apparent from the
amount of net worth each individual possesses; this being important because of the difference of
minimum net worth needed to own either “multi-unit” or “non-traditional” (U.S.).



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        The international option of owning a franchise is separated into three strategies. The
strategies are decided on depending on local market requirements. After the buyer has decided
upon where their franchise will be located, the choice is between joint venture, developer-
franchisee or company-owned operations (International). The buyers have the power to purchase
any type of franchise similarly to the United States franchising options but have the extended
requirements from Jamba Juice of needing the experience of owning or managing a “multi-unit”
specialty retail store (International).
        The bargaining power of the two separate types of buyers depends on Jamba Juice‟s
product differentiation. The buyers looking to own a franchise have the opportunity to purchase
any type of company that has the option to franchise their locations. With the assumption that
Jamba Juice‟s buyers are looking for a specific franchise of “processed & packaged goods,” then
the focus turns to companies like Dairy Queen, Maui Wowi and Smoothie King Franchises
(Jamba). Each of these food locations within the United States proposes the choice to franchise.
This availability of franchised companies gives buyers the decision to choose and create a
decision based on their list of values needed within a store.
        The ultimate consumers have noticed their choice among the vast amount of smoothie
options throughout their communities. The three major competitors force the buyers to
differentiate which company they believe offers the “best” smoothie. Starbucks is currently
competing with Jamba Juice‟s buyers within the breakfast food market (Luna). This competition
stems from Jamba Juice expanding their product line to different types of oatmeal offered at their
700 locations nationwide. The oatmeal expansion was launched after Starbucks created their line
of breakfast foods, which gave a “much-needed financial boost” (Luna). Jamba Juice believes
their oatmeal product line will flourish due to the differentiation of offering 100 percent organic
oats in addition to the fresh fruit option of apple, banana or blueberry (Jamba).

Substitutes

        Substitutes are defined as a product or service that is not in the same industry as your
product, but can perform the same function as your product (Hitt, 52). Substitutes possess a
threat to Jamba Juice because customers do not have high switching costs; therefore it is easy for
a customer to choose a substitute over Jamba Juice‟s smoothies (Hitt, 53). Many of the
substitutes related to Jamba Juice are similar in price and quality; therefore they do not have
much differentiation from their substitutes.
        Differentiation of a product can help reduce the threat of substitutes. This adds value to a
product that is important to customers (Hitt, 53). Jamba Juice has differentiated itself by offering
its customers healthy refreshments. This will appeal to the health conscious market that is only
interested in putting healthy food and drinks into their bodies. This is a niche that is becoming
more popular to people in the US. Consumers value nutritious options to boost their energy as
well as give them much-needed vitamins. The smoothie industry has also grown because many
Americans skip meals and do not have healthy eating habits and they rely on smoothies to give
them a pick me up snack and well needed vitamins (Report buyer).
        There are many threats that exist to the smoothie industry. Some substitutes that pose the
highest threat are coffee, soft drinks, healthy juices, energy drinks and milkshakes. Each of these
substitutes is similar in price and quality of Jamba Juice. Even with market rates decreasing in
soft drinks and coffee, they still pose a threat as a substitute for Jamba Juice (Report Buyer).




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         Coffee and coffee stands are very common and popular throughout the U.S. Many people
must have their coffee in the morning and to keep them going throughout the day. They rely on
coffee as their energy boost. According to a survey done by the National Coffee Association of
USA, the number of coffee drinkers has decreased from 57 percent to 55 percent in about a year
(Nicholson). This could be due to the trend of people trying to be healthier and reduce their
caffeine intake. However, coffee is still a threat to Jamba Juice‟s smoothies, especially with
successful companies such as Starbucks and Tully‟s Coffee. These are well-known companies
and brand names that people know and trust. There is a Starbucks on every corner and the
company is very accessible throughout the United States.
         Milkshakes and ice cream may be another substitute for Jamba Juice. Ice cream can
fulfill the same need of a cold creamy beverage or refreshment. Places such as TCBY, Cold
Stone, and Baskin Robins offer customers the option of a creamy milkshake on a hot summer
day or scoops of ice cream. In addition, many of these ice cream shops also serve fruit
smoothies. Jamba Juice has differentiated its product line by making natural smoothies with less
sugar. This gives them an edge over the substitute of milkshakes or sugary smoothies.
         There is a decline in soft drink consumption in the United States which may be due to the
increase of health conscious Americans ( Report buyer). Many are beginning to seek healthy
beverages such as smoothies and healthy fruit juices such as Naked Juices. This can be another
substitute to smoothies. Naked Juices are 100 percent juice with no added sugar or preservatives.
They offer a variety of tasty flavors as well as adding antioxidants, protein, and many other
nutrients. Naked Juice is also beginning to add smoothies to their products, which make them
very competitive to Jamba Juice (Naked Juice).
         As mentioned earlier, Jamba Juice is implementing their smoothies in airports and
college campuses. James White, CEO of Jamba Juice states, “As we continue to grow our
franchise locations, non-tradition outlets will play a key role in our strategy” (US: Jamba Juice
expands). The CEO of Jamba Juice realizes the vast amount of Jamba Juice substitutes, like
restaurants, coffee stands, and fast food restaurants selling smoothies and the possibility of
customers switching. Many beverage companies are attracted to smoothies‟ sales due to the
tremendous growth in the United States (Report buyer).

Competitors

         In the food and beverage industry, Jamba Juice has a lot of competitors. Since the
company is now beginning to serve breakfast foods in addition to beverages, they are in direct
competition with thousands of new businesses. Some of the main competitors are Starbucks,
McDonald‟s, and soon to be bottled beverages at your local grocery stores. However, Jamba
Juice is trying to be more aggressive by reaching customers in locations where other businesses
haven‟t tried too hard to attract. For example, Jamba Juice has recently announced that they want
to start opening kiosks at airports and at universities and colleges throughout the country.
         There are numerous competitors in the same industry as Jamba Juice, many of which
hold a larger part of the industry. However, Jamba Juice is expanding their menu by creating
more food type options, such as oatmeal. The problem with this is the fact that this opens up their
company for more competitors to take them down. For example, according to Rothbort, “On
McDonald‟s last conference call the company emphasized that it will expand further into the
beverage business -- specifically, smoothies, frappes and bottled drinks” (Rothbort). McDonald‟s




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is a corporate monster and will take out Jamba Juice in little to no time. In fact, McDonald‟s
market cap is $60.82 billion while Jamba Juice is $23.52 million.
         Jamba Juice is entering a whole new market with a large number of competitors by
serving food. It may be tough to penetrate the food market, but they are currently aiming at their
existing customers. “We believe oatmeal and other food items will strengthen our relationship
with existing customers and attract new customers as well. Our research indicates a significant
number of Jamba customers currently purchase a smoothie from us, but then purchase a food
item elsewhere” (White). By serving food to those customers who already purchase smoothies
they are taking that much business away from their competition. They are fulfilling a need that
has been overlooked.
         As mentioned earlier, McDonald‟s is positioning themselves to take over all of the food
and beverage market by creating products that are similar and cheaper than their competitors. For
example, McDonald‟s recently expanded their market by creating the McCafe restaurant chain.
Their slogan, which states, “four dollars is stupid,” is directly targeted towards Starbucks.
McDonald‟s also announced that they also plan to penetrate the smoothie/juice market as well. If
this is the case, Jamba Juice will be greatly affected by McDonald‟s decision to slice into their
market.

New Entrants

        The barriers to entry in an industry are a measure of how easy it is for a new market
entrant to enter into a given industry. A high barrier to entry can make it extremely difficult for a
new company to enter into a given market. Conversely it grants a retention and competitive
advantage for existing companies in the industry by preventing additional companies from taking
away market share. On the other hand, a low barrier to entry makes it easy for a company to
enter a market in a short amount of time and gain market share. Existing companies view a low
barrier to entry as a negative in that it makes the market for the given industry competitive and
forces companies to adapt to the threats posed by new market entrants. In order to judge if the
industry that Jamba Juice is in has a high or a low barrier to entry it is necessary to examine
several key indicators of a high or low barrier to entry. These key factors include economies of
scale, product differentiation, capital requirements, switching costs, access to distribution
channels, cost disadvantages independent of scale, government policy, and expected retaliation.
        The first key factor to determining whether or not an industry has a high barrier to entry
is to examine the companies that can operate off of economies of scale. Economies of scale are
derived from incremental efficiency improvements through experience as a firm grows larger. So
as the quality of a product produced during a given period increases, the cost of manufacturing
each unit declines (Hitt, 49). Economies of scale are not considered to be a barrier to entry for
Jamba Juice or its competitors. Jamba Juice is a retailer specializing in selling healthy products
such as oatmeal and smoothies. These products are customizable and customizable products are
not produced in enough quantities to achieve economies of scale. Thus new potential competitors
to Jamba Juice seeking to sell comparable customizable fruit product would not find economies
of scale to be a barrier to entry in this case.
        The second barrier to entry is product differentiation. This happens when a company can
convince consumers that its products are unique and build loyalty to the products. A company
can also offer a set of different but related products to increase the barrier to entry. Jamba Juice
has established this barrier to entry in the fact that their brand works on highly customizable



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blended fruit drinks which their advertising stresses as healthy and unique snacks. Once
customers are loyal to Jamba Juice and its product line, it would be hard for a new market entrant
to convert Jamba Juice customers over to their product line. In order to counteract this, a new
market entrant would have to competitively price their products at lower prices. This could result
in decreased profits or even a loss and thus is dangerous to do.
         The capital requirements for entrance into Jamba Juice‟s market are not extensive and
don‟t represent a serious barrier to entry. The capital requirement means how much does the
company have or need to invest to properly enter the market. These costs include marketing,
buildings, equipment, and all the other costs required to buy and run the business. Since Jamba
Juice is a relatively small operation, the overall costs in opening a location would not be
extensive. A new market entrant could easily open up a smoothie stand or small store and
compete with Jamba Juice. The only resource that would tax the new market entrant would be
the extra marketing needed to gain market share early on.
         As discussed earlier, switching costs are one-time costs customers incur when they buy
from a different supplier (Hitt, 50). These costs pose little barriers to entry for Jamba Juices
market. A customer only has to drive to a different location if they wanted to switch brands. In
order to increase switching costs, companies could offer loyalty reward programs designed to
increase the customer‟s tendency to return for repeat business.
         Another effective barrier to entry is access to distribution channels. If Jamba Juice wants
to sell its products in grocery stores it would have to compete for new shelf space with all the
existing brands. In order to do so they would have to offer price discounts and cooperative
advertising, which would cut into their profits. That aspect of Jamba Juice‟s market has a high
barrier but the other aspect of stand alone fruit juice stands do not. If a new market entrant wants
to enter its products into a grocery or retail store then the barrier to entry is high, but if all they
are doing is supplying their own stores, then it is not a significant barrier to entry.
         Cost disadvantages independent of scale involve cost advantages that a new market
entrant cannot copy. The most relevant barrier to entry for the fruit drink market would be the
physical locations of the Jamba Juice stores. If Jamba Juice has a prime location that a new
market entrant cannot access, then the barrier to entry in that area would be large. For example,
Jamba Juice has small kiosks in airports (US: Jamba Juice expands). If a new market entrant
cannot also get a stand inside that airport they cannot gain market share at that location. A way
around physical location is catering or delivery service. This can act as a stepping-stone in
breaching a new market location.
         The barrier to entry of government policy is relatively simple in terms of food and drink
regulation. A new market entrant would only need to follow the law and obtain the proper
permits to sell food and drinks. This would pose no barrier for a company serious about getting
into the market.
         The last barrier to entry that a new market entrant would need to examine would be the
expected retaliation from the established market competitors. If a new market entrant tries to
move into a market that is in direct competition with Jamba Juice, then they can expect a
retaliation of increased promotions, price-cutting, or new loyalty programs from Jamba Juice to
protect its market share. A way to bypass this barrier is to find a niche that is not yet focused on
by the existing market.
         Overall the barrier to entry for a company that wants to compete with Jamba Juice is
fairly low to mid range of difficulty. It is easy to get into the market because one can build stores
quickly and it does not require extensive capital to enter the industry. The only resistances that



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Jamba Juice and other established competitors have erected are a strong product differentiation
and customer loyalty. In order for a new market entrant to succeed, they would need to focus on
advertising and finding something to differentiate themselves from the current industry leaders.

PEST Analysis:

Political

         As mentioned earlier, Jamba Juice has 707 stores nationwide with 501 being company-
operated and owned. The Bahamas is the only country outside of the United States that has a
Jamba Juice within its borders (Investor). This company must focus their political studies within
the United States for the most beneficial and efficient results.
         President Barack Obama was inaugurated in January of 2009. President Obama knew that
his new term would be filled with some great challenges. The largest political challenge that
directly affects Jamba Juice is the economic downturn of the United States over the past few
years. The $787 billion economic stimulus package was recently signed into law over the month
of February (President). This package allots specific amounts to various causes and is said to
have an “unprecedented level of transparency and accountability for the money spent”
(President). President Obama assures the public they will have an instant cure for “America‟s
economic woes” (President). This package will help the American people feel more confident in
their purchases and feel a sense of trust from the sellers. The highlights from the stimulus
package will include tax rebates ranging from $300 to $1200 depending on their annual salary
and marital status (Obama). Another facet of this package includes a plan aimed at saving or
creating 3.5 million jobs and boosting consumer spending and rebuilding infrastructure (Obama).
         With the combination of the two primary points of the economic stimulus package and
the essence of time, the American people will be in a trustworthy market to buy and sell products
with assurance. Jamba Juice is a company that sells goods such as smoothies and oatmeal that
are not necessities to an individual‟s everyday needs. The changes that will be made to our
political system by means of the economic stimulus package will be the modification needed for
consumers to feel comfortable purchasing Jamba Juice‟s products. Jamba Juice will not only
need to focus on consumers‟ purchasing abilities but also their buyers for the franchises offered.
The specifications Jamba Juice requires in order to apply to be a franchise owner will be
reachable with the results of this political stimulus package.
         Due to Jamba Juice being located primarily throughout the United States, the political
focus is generally centered on the United States government (Investor). Jamba Juice is interested
in expanding abroad but has not made this a primary goal over the past few years. The
organization currently purchases their raw materials from within the United States. Therefore,
the 707 stores nationwide must be studied with the American, democratic political lens before
Jamba Juice expands their vision overseas.
         Jamba Juice has noticed another political aspect to their analysis from their direct
consumers. Specifically, 1,600 residents of Stanford University recently signed a petition against
the use of Styrofoam cups and packaging at their Jamba Juice on-campus (Rempel). A student by
the name of Theo Gibbs began this petition at his school due to the “environmental health
hazards caused by expanded polystyrene, or Styrofoam (Rempel).” Gibbs wanted to set an
example of Stanford University becoming “environmentally friendly”. The article of this petition
is cited from The Stanford Daily, which notes San Francisco and Oakland have taken action in



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banning the use of Styrofoam. Jamba Juice does not currently have standards within their
company to change the use of Styrofoam. The political action from Jamba Juice‟s consumers
expressing their personal views of sustaining the environment will begin to affect the purchasing
of smoothies that are enclosed within a Styrofoam container.

Economic

        During these difficult economic times, businesses like Jamba Juice are struggling. For
example, according to Yahoo! Finance, for the quarter reported in October of 2008, Jamba Juice
had a profit margin of -75.57 percent. Competitors such as Starbucks are also having a hard time
getting through this economy. In 2008 Starbucks eliminated nearly 12,000 jobs. According to
MSNBC, “[Starbucks] said it now plans to close 600 company-operated stores in the United
States, up from its previous plans to close 100 stores” (Linn). In the industry that Jamba Juice
shares, businesses that don‟t have a solid menu and offer products at reasonable prices will not
survive in this economic slump simply because consumers are looking for the cheapest product
at highest quality.
        Jamba Juice falls under the industry of processed and packaged goods. According to
Yahoo! Finance, the index value for this industry is in a decline. Since we don‟t have a lot of
recent information from this industry we can‟t make precise assumptions. However, according to
the data the index dropped nearly 40 points in a 24-hour period and is drastically declining. It
seems that the only leaders in this industry are those companies that are well established and
have a high market cap. A few of the leaders in this industry are Pepsi, Unilever, General Mills,
Kellogg, Campbell Soup Company, and Smuckers. The laggards in this industry are Fresh
Harvest Product, Coffee Holdings Company, Vaughan Foods, and Neptune Industries. As you
can see, these companies greatly differ. The companies that lead this industry are huge
corporations while those who seem to be unknown are greatly failing.
        It is somewhat difficult to compare Jamba Juice with other businesses in the processed
and packaged goods industry. For example, let‟s compare Jamba Juice to PepsiCo. Pepsi‟s
market capitalization is $77.9 billion while Jamba Juice is $22.42 million. Revenue growth for
Pepsi is 315 percent while Jamba Juice is 3.6 percent (Yahoo! Finance). It is evident that Jamba
Juice is a very small corporation in comparison to PepsiCo. However, while it may not lead the
industry, it is coming up with new and creative ideas to gain their share of the market.
        The industry that Jamba Juice is in is a tough one. For example, stock prices for
Starbucks have taken a nosedive of nearly 50 percent in a 52 week period. Jamba Juice‟s stock
prices used to be around $11 to $12; unfortunately their stock price today has hit an all time low
of $0.41 a share. During these economic times companies have to strategize and implement
unique ideas that are above and beyond others in their industry in order to survive. For example,
Jamba Juice is getting ready to release their new retail products that will be sold in grocery stores
throughout the country. It is ideas like these that can make or break a business.

Sociocultural

        On a sociocultural level, Jamba Juice has shown it is committed to its stakeholders,
whether that is its employees, customers, or the community. The foundation of the organization
is health and wellness, providing a positive environment for customers and employees. Concern
for customers has always been a staple of the company, but will be strengthened this year by new



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customer service initiatives. Also, Jamba Juice is invested in giving back to the community by
donating to numerous causes on a regular basis. Overall, Jamba Juice is prospering in the
sociocultural aspect of the company but is constantly working to improve itself even more.
         January 21, 2009 Jamba, Inc. sent out a press release outlining its plan to boost the
organization‟s success in 2009. This included improving customer service as well as expanding
its product line to supplement its healthy beverages with foods. The company intends to improve
its service by simplifying the operations process in order to free up more time to devote to
customers. The release explains, “Store managers are being relieved from unnecessary
administrative reporting to focus on customer service initiatives” (Pulman, Alecia). It also
discusses the renovation of older stores to refresh Jamba Juice‟s look and environment to entice
more customers.
         The press release also highlighted the company‟s desire to improve its product options.
Known as the “the leading blender of fruit and other naturally healthy ingredients…Jamba
strives to inspire and simplify healthy living for its customers and employees” (Pulman, Alecia).
Jamba Juice began offering hot oatmeal nationwide in January and hopes to expand the food line
to include wraps, sandwiches and salads within the year (Pulman, Alecia). Not only does Jamba
Juice focus on the healthiness of its products, it also promotes fitness to its employees and
customers.
         Over the past year, the organization held three major campaigns to promote exercise and
wellness. One program, Jamba Active{ism for Kids, encouraged kids to get out and get moving.
The event, held in March 2008, also raised money to improve four elementary school‟s physical
education programs with new equipment, etc. According to Jamba Juice‟s website, “The students
at each of the four schools „competed‟ for one of the four grants by wearing Jamba provided
pedometers for a month and logging their movement” (Jamba Juice). The company also required
all employees to participate by logging their walking for one of the four schools as well. The
grants ranged from $10,000-$4,000. For another one of the programs, Jamba Juice teamed up
with Nike and hosted running events. Lastly, Jamba Juice partnered with KaBOOM!, “a national
non-profit that brings together children, businesses and community partners each year to build
playspaces in local communities” (Jamba Juice). In June 2008, Jamba Juice members and
volunteers built a playground at a Boys & Girls Club in Fullerton, California.
         Jamba Juice also gives back to the community by offering two forms of fundraising, “Go-
go” and “In store.” “Go-go” is when Jamba Juice caters an event. The customer selects a location
for Jamba Juice to provide the smoothies and 20 percent of the sales are donated to the desired
cause. “In store” is similar to “Go-go” but as the name suggests, the same service is provided in
store. The store will choose an organization to support on a certain day and when any customer
mentions the cause during that day, Jamba Juice will donate 20 percent of the sales to the
organization. For example, just this week a store in Scotts Valley, California announced that it
will donate 20 percent of the price of any purchased smoothie to Big Brothers, Big Sisters to
customers that mention the cause (Press Banner). In a store in Colorado, the 20 percent will be
donated to a scholarship fund at Colorado State University to any customer that mentions it
(Browne, Jeff). This provides each store the freedom to support local or global causes it deems
worthwhile for contributing. Thus, Jamba Juice regularly exercises its ability to support its
community in a variety of ways.
         However, the organization is not immune to bad publicity. In 2006, a Seattle store
manager was accused of sexual harassment of a female teen worker. This year, the PBS show
NOW is producing a feature on teen sexual harassment, which includes the case involving Jamba



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Juice. Jamba Juice declined the request for an interview, but the statement sent to PBS
demonstrates that it handled the situation quickly and competently. The statement explained that
the company investigated the matter immediately after it was reported and soon after fired the
general manager. For the company as a whole, Jamba Juice is raising awareness of the
mandatory sexual harassment training of employees and the availability of an anonymous hotline
to report incidents. The organization‟s quick and thorough response demonstrates that sexual
harassment is not common or accepted in its stores. Also, “the Equal Employment Opportunity
Commission unilaterally dismissed its separate lawsuit brought in connection with this incident”
(NOW). This shows that Jamba Juice takes responsibility for its employees‟ actions and acts
accordingly to rectify negative situation to the best of its ability.

Technological

         Jamba Juice is not known for being a highly technological organization, but in this age of
digital information it is impossible to avoid some technological trends. As discussed earlier, the
company is looking to improve its customer service and it hopes to accomplish that with the help
of some technology initiatives. According to the press release, these initiatives “would promote
efficiency in customer service including a customer loyalty system to drive increased frequency
and market share among Jamba customers” (Pulman, Alecia). These systems promote better
relationships and contact avenues between customers and the company. The release also
discussed the possibility of implementing self-service terminals as a quicker, more efficient use
of labor and service (Pulman, Alecia).
         On an environmental front, Jamba Juice decided to contract Lighting Technology
Services Inc. to retrofit lighting at more than 100 of its store locations in 2001. According to an
article in the San Jose Business Journal, “Lighting Technology will install more energy-efficient
lamps, ballasts and fixtures throughout the retail display spaces and building common areas in
each location. The company also will install new lighting controls, reducing operating hours of
some lighting fixtures” (San Jose Business Journal). While this is an eco-friendly approach to
conducting business, Jamba Juice will also be saving a significant amount of money in electricity
by utilizing this technology.
         Also in 2001, Jamba Juice implemented a software program from Centiv that would
assist with management incentives as it grew nationally. According to an article on CNet News,
“The idea was to ensure that stores were managed efficiently and that they retained managers
during a period of rapid growth in an industry in which 40 percent to 50 percent manager
turnover is the norm, said Bob Andrews, director of human resources at Jamba Juice” (Gilbert,
Alorie). Since the software purchase, Jamba Juice has opened many more stores across the nation
and managerial turnover has decreased significantly.
         In 2002, Jamba Juice expanded their online capabilities by choosing Gift Check Solutions
to provide them with e-commerce services. These services enable customers to order gift
certificates online at Jamba Juice‟s website (Business Editors). According to the article, “Jamba
Juice is growing in popularity, and now its customers can give the gift of „Jamba‟ to their friends
and family by ordering the gift certificates online. This opens a new source of revenues for
Jamba Juice by using their Web site as a tool to attract future customers and service existing
customers” (Business Editors). The decision to utilize e-commerce has been a positive one,
especially during the holiday seasons (Business Editors). A gift certificate to Jamba Juice is
quick, easy, and good for a broad range of consumers.



                                                                                                10
        These are a few of the many ways Jamba Juice is optimizing new technologies to best
benefit the organization. From adding a customer loyalty program to remodeling store lighting
and maximizing e-commerce capabilities, the company is staying up to date and maintaining its
competitive edge. Although these events are somewhat dated, they are equally important to the
success of the organization because they form the foundation of the business. The lack of recent
articles on its technology demonstrates that the basic business model of Jamba Juice is not
technologically focused.

Conclusion

        Restaurants and retailers known for their breakfast foods have a new competitor. Jamba
Juice‟s decision to begin selling hot oatmeal shows their versatility in the market. Customers that
would purchase smoothies and then go elsewhere for food will now have the option to get a
whole meal in one stop. With a strong presence in the United States, Jamba Juice is maintaining
its edge in the processed and packaged goods industry. By conducting an external analysis, it‟s
clear that Jamba Juice exploits its core competencies and is continually working to improve its
business model in order to maintain its success.




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