Honest Tea Case Solution
General environment of the tea beverage industry:
It is expected that Tea beverage industry is a continuously growing industry and it is also considered as an old tea beverage industry. Tea is considered as a healthy beverage and has significant cultural values therefore,tea beverage industry is among the most growing and profitable industries. It is expected that with the increase in population, the number of tea beverage users will increase therefore;it is also considered that the growth of the tea beverage industry will be high as compared to the other beverage industries.Tea in beverage industry is also considered as a cheap product among other beverage products thus, the number of tea beverage users is also high all over the world as compared to other beverage products.
Competitive Positioning,Opportunity and Differentiation of the company
It is expected that Honest Tea Company is operating in the tea beverage industry from many years and size of the company, market share and customers’ base is small as compared to the other large players that are operating in tea beverage industry however,Honest Tea’s unique idea of Ready-to-Drink tea provides the company a competitive position over its rivals.Moreover, strong distribution channels of the company also provide a competitive edge to the Hones tea over its competitors.
In addition to this,its unique idea provides an opportunity for expansion and there is a significant potential of growth with in the tea beverage industry, therefore the management of the company could increase its product line by bring new creative idea with creative strategies in order to grow.
It is expected that the unique idea of the company with respect to the products differentiate the company in the beverage industry from other beverage companies such as ready to drink tea product in range of flavors. Moreover, the marketing mix that the management of the company is using in order to sale the products and in order to create a pool of loyal customers is efficient such as attractive packaging, pricing, quality as well availability of its product in the market makes Honest Tea different from other companies.
Competitive Threats
Honest Tea is facing some major competitive threats with respect to its financials position and with respect to its competitors such as the financial position of the company is weak, which could be due to its aggressive expansion strategy in the earlier time of growth. Therefore, the company’s earnings are lower than its break even point, which is considered as a significant threat for the company...................
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