Environment Analysis for Boost Juice Bar Essay Example

increasing price of banana: banana is one of the main ingredients of Boost's Juice and smoothies. The stably high price of banana is pushing the cost of Boost's production up hence shrinking its profit.

Boost has not increased price of any product yet, but this factor needs to be considered.

Technological environment: since Boost's production does not require advanced technological support, the technological environment is friendly to Boost. In the other hand, a creative web page design group has provided a fun, friendly and attractive homepage of Boost, which helped to build a good impression on costumers.

Political and legal environment

Regional groupings: with the agreement of CERO (Closer Economic Relations), Boost is access to tax free imports of ingredients from New Zealand.

This agreement benefited Boost with cheap fruit and milk product supplies. B. Freedom of competition: according to section IV of "Trade Practices Act 1974", companies in Australia, including Boost, are under protection which ensured a free and competitive market. Boost has as equal opportunity as other companies in the industry.

Cultural and social environment a. Australians' diet: Australia is a "big" country. Young Australians are growing bigger compared with the older generations. Boost's low fat smoothies and sugar free juice are perfect combinations to Australians diet preference.

This created an advantage in Boost's marketing process.

Weather: Australia has long, dry and hot summer. Fresh and cool Boost Juice is highly preferred in weather like this.

Competitive situation analysis

Competitors Direct competitors I Indirect competitors I Viva Juice;Juice Fusion;Pulp Juice;Kick Juice Bar;And other Juice bars. Bottle Juice;Smoothies retail sellers;Low fat yoghurt retail sellers. I Porter's five forces. Competitive advantage I Stores sell Boost

is in a monopolistic competition with target market of young Australians.

Although Boost is growing faster and bigger than its competitors, it still need to be aware of them. Boost's greatest advantage is its friendly relationship with customers, including good service at the branch, fun web page targeting young buyers and the "Boost guarantee" which encourages customers to give feedbacks.

Company analysis

1. Mission statement. Objective 1: to become the leading company in Juice bar industry; Objective 2: to make Boost "a global phenomenon" (Boost Juice bar 2011).
2. Company resources a. Financial strength: Boost has its advantage in the low cost production and invention. It also has made an agreement with Riverside Company in which Riverside becomes Boost's overseas investor.

With Riversides Asian fund, Boost's expansion into international market is fully supported. B. Production capability and flexibility: shortage in fruit supply due to nature disaster is a big threat to Boost's production. Besides that, Boost's production is very flexible that can suit all customers' requirement.

Marketing strength: Boost's major marketing strength is provided by its brand. It understands young customers need and want hence present them a wide menu of Juice and smoothies. The low cost of worker's training also puts Boost in an advanced position.

SOOT

Strengths:

Well-known brand; Low cost of operation and production; Low price; High profitability; Good reputation as healthy food provider;Short production process; Low requirement of staff skill;owning cultural preference. I Weakness:Highly relies on apply chain;No price advantage.

Opportunities:

Healthier life style trend in Australia;partnership with Riverside;succeed overseas operations. Threats:Relies on seasonal factor too much;Open market allows more competitors to entry;Hard to take market share from other countries' local brand.