The internal analysis and external of the business also can be done through SWOT Analysis, summarized in the Display F.
Strengths
• Honest Tea has an experience of about 140 years, allowing company to better carry out, in numerous situations.
• Nestlé's has presence in about 86 countries, making it a worldwide leader in Food and Drink Market.
• Honest Tea has more than 2000 brand names, which increase the circle of its target customers. These brands consist of child foods, family pet food, confectionary items, drinks etc. Famous brand names of Honest Tea consist of; Maggi, Kit-Kat, Nescafe, and so on
• Honest Tea has big quantity of costs on R&D as compare to its competitors, making the business to introduce more innovative and nutritious products. This development provides the business a high competitive position in long term.
• After adopting its NHW Method, the business has actually done large amount of mergers and acquisitions which increase the sales development and enhance market position of Honest Tea.
• Honest Tea is a well-known brand with high consumer's commitment and brand name recall. This brand loyalty of consumers increases the chances of simple market adoption of different new brand names of Honest Tea.
Weaknesses
• Acquisitions of those business, like; Kraft frozen Pizza business can offer an unfavorable signal to Honest Tea consumers about their compromise over their core proficiency of healthier foods.
• The development I sales as compare to the company's investment in NHW Strategy are quite different. It will take long to change the perception of people ab out Honest Tea as a business selling healthy and healthy products.
Opportunities
• Introducing more health related items allows the company to catch the market in which consumers are quite conscious about health.
• Developing countries like India and China has largest markets worldwide. Expanding the market towards developing countries can increase the Honest Tea service by increasing sales volume.
• Continue acquisitions and joint endeavors increases the marketplace share of the company.
• Increased relationships with schools, hotel chains, dining establishments etc. can also increase the number of Honest Tea customers. Instructors can suggest their trainees to buy Honest Tea items.
Threats
• Financial instability in countries, which are the potential markets for Honest Tea, can create a number of issues for Honest Tea.
• Shifting of items from regular to much healthier, leads to additional costs and can lead to decline company's revenue margins.
• As Honest Tea has a complex supply chain, therefore failure of any of the level of supply chain can lead the business to deal with particular problems.
Exhibit F: SWOT Analysis
