Local ingredients as a sustainable competitive advantage in the juice bar industry
Le Baron, Kiya (2023)
Le Baron, Kiya
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023120735089
https://urn.fi/URN:NBN:fi:amk-2023120735089
Tiivistelmä
The juice bar industry has rapidly grown as part of the ongoing trends of a healthy lifestyle, well-being, sustainability, and environmental awareness. The juice bars today offer a menu following seasonality to some extent, but despite the increasing demand for sustainable and environmentally aware options, none of the bars have an offering based on 100% local sourcing. The primary objective of this research is to provide data to support the start-up in strategic decisions on whether to go forward with the proposed business plan or make changes. The aim is to determine the demand for the proposed strategy of local ingredients and whether it can be a competitive advantage. The literature review examines the most important concepts relating to a competitive advantage. It dives into the current concept of local, the formulation of effective strategies, the development of a value proposition, competitive advantage, SWOT analysis, methods for product differentiation, and understanding market competition through the Five Forces analysis and the VRIO framework. These theories together provide a solid base for the comprehensive understanding of the competitive advantage the juice bar start-up may have with the usage of locally produced ingredients. A quantitative case study research method was chosen to study this hypothetical juice bar
case and the uniqueness it offers. The data collection method includes both benchmarking and surveys with a combination of open and structured questions. Benchmarking involved collecting data from the chosen competitors regarding ingredient sourcing, sustainability, and competitive advantage. The findings have positive implications for the juice bar start-up. While many of the respondents believe sustainability is important, over half of the respondents feel locally sourced is of little importance in the
juice bar industry. This shows that people appreciate the value of locally sourced products, but proves it is not the only reason to visit a certain bar over the other. It is very important to underline the primary motivations for visiting a specific juice bar, which are taste, health, and cost. The results show clearly that the approach of the juice bars product development and marketing should not rely solely on local sourcing but go beyond that.
case and the uniqueness it offers. The data collection method includes both benchmarking and surveys with a combination of open and structured questions. Benchmarking involved collecting data from the chosen competitors regarding ingredient sourcing, sustainability, and competitive advantage. The findings have positive implications for the juice bar start-up. While many of the respondents believe sustainability is important, over half of the respondents feel locally sourced is of little importance in the
juice bar industry. This shows that people appreciate the value of locally sourced products, but proves it is not the only reason to visit a certain bar over the other. It is very important to underline the primary motivations for visiting a specific juice bar, which are taste, health, and cost. The results show clearly that the approach of the juice bars product development and marketing should not rely solely on local sourcing but go beyond that.