The world of business is today a more sensitive field that is quite responsive to change, both external and internal. There is no change that takes place in the business world without impacting on performance, especially financial. Negative impact means companies go down financially and even to lose ground as they shut down their shops. Notably, what stands out clearly is that whenever a big brand fails and shuts down, it is always replaced quite fast and people tend to forget about it. However, in the build up to its failure, there are always warning signs and predictions given by business researchers and pundits. Today, researchers have predicted the fall of certain big companies for various reasons. The big brand chosen for this paper is Jamba Juice. In this paper, the argument is that Jamba Juice is going to fall down because of two factors which are seasonality and the stiff competition from fresh versatile brands across the country and internationally.
Jamba Juice offers smoothie drinks to customers in the United States of America. It sells blended beverages, juices and fruit smoothies. The company has been reporting dip in its profits and overall earnings. While acknowledging the fall in earnings, the company’s executives have always given out a number of reasons including instability in the politics of the nation and dwindling economic times in the industry. Rightly, many executives will always shift blame to external factors in the business environment whenever profits start to decline. The aim of clutching on to the external factors is to claim inability to control the developments. For the case of Jamba Juice, the glaring fact is that its seasonality nature is cause of the impending failure.
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Seasonal businesses are never lucrative since they have lows and highs. Jamba Juice depends on the summer season for most of its business activities and even earnings. It implies that when the summer season ends, the business of the company goes down significantly including the earnings. The company’s profits stay on a down-trend for the longer period of the other three seasons, which are autumn, spring and winter. It is a dangerous condition for a business, which has employees and suppliers depending on it for a livelihood.
Jamba Juice has always had to lay-off its staff members during low business times. The trend has not portrayed it well as many employees keep moving out to get secure jobs elsewhere. Workers, today, want to work in a place where they feel the security of tenure. Interruptions in their earnings because of lay-offs often hurt households. Therefore, the situation at Jamba has always meant it has a highly less motivated staff hence the poor performance and impending failure.
Secondly, the company is now facing stiff competition from other new but giant beverages companies. Competitors like Starbucks and McDonald’s have widened their smoothie products hence lowering the novelty with which Jamba Juice was held in the past. The field of beverages in the United States of America is today ruled by the Coca Cola brand that stays at the top. There is also other giant brands like Pepsi, which has a significant share of the market. In the United States of America, Starbucks is a major company. All these competitors have pulled rigorous campaign and advertising moves, which continue to eclipse Jamba Juice brand.
Believably, Jamba Juice had the chance of controlling the impact caused by these two factors. The company would have re-engineered its business strategies and engaged in active and rigorous brand popularization campaigns both online and in mainstream media to ensure it adapts to the high competition in the industry. Furthermore, diversification of its offerings would have helped it overcome the limitation of seasonality, which continues to tie its performance down today.
