The threat of new entrants in the juice bar industry is very high

The threat of new entrants in the juice bar industry is very high. The entry barriers are low and the capital requirements are low. Access to distribution is moderate. Cost disadvantage is low switchingDess, McNamara and Eisner (2016), explain the “five forces” model developed by Michael E. Porter has been the most commonly used analytical tool for examining the competitive environment (Dess, McNamara, & Eisner, 2016, p. 53).

According to Dess, McNamara and Eisner (2016), the threat of new entrants refers to the possibility that the profits of established firms in the industry may be eroded by new competitors (Dess, McNamara, & Eisner, 2016, p. 53).
The threat of new entrants in the juice bar industry is very high. The entry barriers are low and the capital requirements are low. Access to distribution is moderate. Cost disadvantage is low switching costs.
This is possible due to the industry’s relatively low barriers of entry; a juice bar requires little more than ingredients, a place of operation, and a low capital investment. Furthermore, once in place, juice bars benefit from ease of operation.

In addition, Dess, McNamara and Eisner (2016), explain bargaining power of buyers the threat that buyers may force down prices, bargain for higher quality or more services, and play competitors against each other (Dess, McNamara, ; Eisner, 2016, p. 54).
The bargaining power buyers is high. Jamba Juice has standard products. There is a low switching cost. In addition, buyers could make these smoothies are home.
costs.