Analysis of Boost Juice using Porter’s Five Forces Framework

This report provides an analysis of Boost Juice using Porter's Five Forces framework. It examines the threat of new entrants, the threat of substitutes, the intensity of competitive rivalry, the bargaining power of buyers, and the bargaining power of suppliers. The analysis reveals that Boost Juice faces a high threat of new entrants due to the industry's profitability and low entry barriers. The threat of substitutes is also high due to the availability of alternative beverages like soft drinks. The company faces intense competition from players like Crussh and Juice Master, with comparable revenue figures. The bargaining power of buyers is high due to numerous options, while the bargaining power of suppliers is low due to the easy availability of raw materials. The report also considers the impact of environmental factors on the production and quality of Boost Juice products.

Agriculture Business

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Porter’s Five Forces Frameworks
The threat of new entrants
It has been seen that the company has high degree of threat of new entrants due to high profit
earn by the industry. The industry attracts the small enterprises or new entrepreneur to enter
the market in order to earn the profit. It is observed that the increasing new entrants increase
the competition threat for the company. It also decreases the profit of the company due to
losing the large number of customer in the market. The rules and policies of the industry have
less restriction which states that company can enter the market (Rothaermel, 2016).
The threat of Substitute
The threat of substitute is high because there are many products which can easily be, replace
by the companies in order to satisfy the consumer. Soft Drinks are the substitute of the
product that can easily replace the Juice products.
The threat of Competitors
It has been analysed that the company has high threat of competitors due to large number of
companies who sell the similar product. Crussh and Juice Master are the main competitors of
the company. Crussh is in the food processing industry, which generates the $41.4k revenue
more than the Boost Juice (Crussh, 2018). Juice Master is a big competitor of the company
because it also provides the similar services as the Boost juice. It has been seen that the Juice
Master has the large experience in the market by serving the product. However; as per the
KRA of the companies, it is observed that Boost Juice has high existing brand value as
compare to the others (Owler, 2018). It has been seen that the Boost Juice earned the $2.5 M
and the Crussh Company earned the $2.6 M which reflects the high competition in the
market.

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Bargaining Power of Buyer
Bargaining power of buyer of the company is high due to large number of companies in the
market. There are many companies offer the similar products at the different prices, which
increase the options for the consumers.
Bargaining Power of Supplier
The bargaining power of supplier is low due to large number of suppliers in the market. It is
observed that the raw material of the product is easily available in the market and the industry
is also highly profitable. That is the reason that the large number of suppliers comes in the
market and supply the product.
Environment Analysis
Boost Juice is produced by the natural ingredients, which are easily affected by the
environment. By changing the weather, the production of fruits and the other ingredients is
affected due to which the taste of juice will also change. It has been seen that the fruits and
the natural ingredients will not stay for long time as per the bacteria in the environment.

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References
Crussh. (2018). About us. Retrieved from: http://crussh.com/about/
Owler. (2018). Boost Juice Bars's Competitors, Revenue, Number of Employees, Funding
and Acquisitions. Retrieved from: https://www.owler.com/company/boostjuicebars
Rothaermel, F. T. (2016). Competitive advantage in technology intensive industries. In
Technological innovation: Generating economic results (pp. 233-256). Emerald Group
Publishing Limited.