Week Two Online Discussion " Strategic Management"

SWOT Analysis: Honest Tea

Given the Honest Tea Business Plan for 1999, the following SWOT analysis is made to determine Honest Tea’s primary approach to execute a strategy for growth.

Strengths

  •  Infrastructure strengthening by hiring

experiences Sales managers

  •  Market branding through celebrities and

news media leading to well recognized

public relations firm

  •  Leader in socially responsible business

movements; Social Responsibility is central

to company’s identity

  •  Product is branded as a healthy cultural

experience using actual tea leaves

  •  Proprietary production process to meet

HACCP and Circle U certifications

  •  Company’s culture is sustained through the

management of Honest Tea’s founders

Opportunities

  •  Explosive growth in Ready-to-Drink (RTD)

tea and bottled water markets

  •  The emergence of tea culture in the United

States

  •  The natural foods boom & rise of Cultural

Creatives: large market of health-conscious

diet soda drinkers

  •  Distribution to 10 supermarket chains with

over 900 outlets, East Coast

  •  Popularity in a variety of food service and

retail accounts, North East Coast

  •  Numerous natural food brokers to

represent product for the East Coast,

Midwest, West Coast and the South

  •  Tea is the world’s second most popular

beverage

Weaknesses

  •  Initial costly product development phase

  •  Not as well-financed or as well-established

as competition

  •  Relies on opportunistic ways to gain public

attention and promote trial of the product

  •  Management team is one level deep

Threats

  •  Unforeseen health-related issue might hurt

brand

  •  TeJava

  •  Malibu Teaz

  •  The Republic of Tea

  •  Tazo

  •  Other entrants into the new beverage

category of natural & authentic tea beverage business