Complete 2 page APA formatted essay: Honest Tea: Is It a Good Business Opportunity.
According to the research findings, it can, therefore, be said that Seth Goldman, an MBA graduate from Yale, started the Honest Tea business, using top of the line tea leaves, and that catapulted to success as it continued to exhibit potentials for increased growth rates. With the company’s competitive advantages being proffered, Seth reflects on future prospects to sustain success in the light of competition posed by other specialty stores and retail locations. The Honest Tea was defined to possess distinct competitive advantages in terms of: (1) being differentiated from other beverages. (2) focuses on the strength of being classified as a USDA organic product where “harmful pesticides and other toxic chemicals have not been used in growing or producing the product”. (3) contains two thirds less sugar as compared to competitors’ products. (4) adheres to ethical standards and concepts of social responsibility where economic activity and promotion to non-profit organizations are supported. and (5) consumers feel good about buying the product due to its health benefits and being part of assisting community programs and projects of the company. Competitors’ tea products were deemed to cost less and other specialty stores, such as Starbucks, who sell high-end tea products that boast of health benefits and high-quality feature the same benefits as Honest Tea. As a consumer, the most important competitive advantage of Honest Tea would be its strengths in providing a product of high quality (being a certified organic product) where purchasing it would enable one to be of assistance to the various socially responsible endeavors of the company. It is like shooting two birds with one stone. By purchasing the products, consumers are accorded its health benefits, and at the same time, be instrumental in helping others through the various programs and community projects of the company.
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