Company description/ key strategy
Honest Tea Inc., is a bottled organic tea company. The company’s core business is to produce, distribute and sell organic beverages. Some of the company’s products include, zero calories soda that are naturally sweetened; black tea, iced tea, bottled tea, low sugar drinks, organic drinks that are thirst quenching, unsweetened green tea as well as a drinks that have minimum sugar. The company sells its products through various channels such as grocery stores and different retail outlets in the Unites States. The company was founded by Seth Goldman and Barry Nalebuff in 1998. The company’s headquarters is in Bethesda, Maryland. The company’s mission is as follows “Honest Tea seeks to create and promote great-tasting,…show more content… Has fully owned by coca cola, as of July 2013 Honest Tea’s stock price opened at 41.03, with a highest of 41.13, lowest of 40.73 and closed at 41.03. In July 2014, it opened at 41.99, with a highest of 42.39, lowest of 41.98 and closed at 42.38. On July 13, 2015, the stock price opened at 40.56 with a highest of 40.77, lowest of 40.49 and closed at 40.66.
Sustainable competitive advantage
Honest Tea has a sustainable competitive advantage in the production of high quality totally healthy organic tea. Although a lot of companies have ventured into the natural and organic foods market; Honest Tea has an advantage over its competitors of being among the first companies to produce organic beverages.
Reasoning behind choice of theory/framework
I used Porter’s five forces model for although simple; it is a powerful and effective tool for competitive analysis. This model let an organization know where their power lie while faced with the competition. Through this, an organization will know its strength in its current competitive position. The Pestle analysis is necessary for understanding the realities of the environment organizations operate in. I chose the differentiation strategy because it was a logical explanation of Honest Tea’s position in the