Friday, 22 March 2013

Boost their Juice (Summary)

It has been over six years since Dale Wishewan and Jon Amack opened their first Booster Juice store in suburban Edmonton (Bogomolny, 2006).  Ever since in the late 1990s, Dale and Jon saw the need to expand as fast as they could in order to establish their brand in the market (Bogomolny, 2006). In 2002, with nearly 75 stores open, Dale and Jonathan decided to drastically slow the growth of the franchise Booster Juice (Bogomolny, 2006). This was temporary in order to prevent lay-offs and closing down Booster Juice locations (Bogomolny, 2006). Today, Booster Juice operates all over Canada and Booster Juice stores are mainly located at retail locations such as shopping centers and are doing very well Bogomolny, 2006).    

My Opinion

The strategy that Dale and Jon used in order to establish their brand was extremely good. They both wanted to expand their business rapidly in order to mass market their brand. This worked really well for Dale and Jon because by mass marketing, it caught the eye of consumers. The consumers would become interested in booster juice by noticing that there are many locations and its fast growth.
In early 2002, Dale and Jon decided to do the opposite of expanding. They wanted to slow the growth of locations of Booster Juice. This was also a good initiative Dale and Jon took because if they were to continuously open up new locations, this would increase their rapidly increase their cost and lowers profit margins. This strategy would also avoid laying-off employees because when costs go up it becomes hard to afford the same level of labour.

Do you think that the strategies Dale and Jon used were effective in expanding and maintaining growth of their business? If not, is there an alternative way you would suggest they should have done it?

Bogomolny, L. (2006, Boost their juice. Canadian Business, 79, 56-59. Retrieved from http://search.proquest.com/docview/221420767?accountid=3455

Picture By: http://billingsbridge.com/store-directory/booster-juice/

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