Bmgt 2299 - Vrio Analysis

Howard Flanagan

Professor Krabill        

BMGT 2299

February 25, 2018

Mini Case #3: VRIO Analysis

Honest Tea, Inc. is the nation’s top-selling organic bottled tea company. They specialize in organic tea and juice drinks. They are a part of the Coca-Cola Company and their headquarters are in Bethesda, MD. In the beginning, Honest Tea’s drinks didn’t appeal to consumers and at one point had such little sugar that it was rejected by consumers altogether. But since the rise of a more health conscience and aware nation, Honest Tea’s brand is on the rise. A VRIO analysis of the company reveals some of their capabilities which include: their well-known brand name, strong focus on sales, strong use of organic and natural ingredients, strong culture around health and wellness products and their high level of operational efficiency. Their brand name alone constitutes a nature of wellness and health. Organic and natural ingredients, of course, we all know are undoubtedly better for your overall health and well-being. This a huge capability for Honest Tea too. They believe organic ingredients deliver the best-tasting drinks to its consumers. So, no GMOs for Honest Tea. Their relentless focus on sales has been a big key to their success. Even though many other companies focus on sales too, Honest Tea’s partner Coca-Cola Company, just being connected to them, helps to boost sales in a nation becoming more aware health wise. Honest Tea has built a name and a brand that has seen success and will continue to see success. To build on that success and sustain its competitive advantage, they should continue to do and build on all the things that brought them to where they are today. Create new and exciting products to keep customers and attract new ones. Stay focused on sales and the use of organic ingredients in products. Stay “Honest” to the mission and vision ahead and build on capabilities and they’ll continue to be the top brand in the drink industry.

VRIO Analysis Chart: Honest Tea