Analyzing Firm Strategy: Lipton Tea

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Table of Contents

Lipton Tea Industry Competitors
The Estimation of Lipton Tea Competitive Advantages
Lipton Tea Business Level Strategy
References

Lipton Tea Industry Competitors

Lipton Tea firm represents a global expert at tea production industry. The universal success of this company is referred to the exceptional quality of the products. It provides the customers with flavonoid antioxidants, which accounts for weight management and free radicals rupture (Strategic marketing management-Lipton tea, 2003).

The firm adopted a red ocean strategy of production since it serves as a distributor of a wide-spread product type. Therefore, the management of the company should be always committed to tea market innovations so that to prevent possible outrivaling. Moreover, according to the regulations of the strategy type, Lipton Tea established a link between its primary activities and its business strategies choices.

Despite the production of Lipton Tea possesses the highest ratings in the sphere of tea marketing, the company stays in constant opposition to such rival firms as Tetley Tea and Society Tea (Lipton tea: SWOT analysis, 2013). The former represents the culture of British beverages and holds a position of the world’s second largest distributors of tea. The power of the brand consists in its products diversity and persistent innovation of manufacture processes.

Thus, the firm provides the celebrated Blend Tea Collection, Peppermint Mix as well as Super Green Tea, etc. Nevertheless, the prolong strives of the company to take an upper hand over Lipton goes in vain since the latter surpasses Tetley Tea in both quality and advertising strategies.

The Society Tea brand occupies the third place in the world ratings of tea manufacturing. This type of beverage attracts the customers through the excellent quality of Indian aroma leaf blends that constitute the base for beverage production. Despite its authentic Asian taste, this type of tea concedes with Lipton, for it provides a limited collection of black tea. Thus, the firm lacks originality and innovation.

The Estimation of Lipton Tea Competitive Advantages

The most prominent strategic advantage of the Lipton Tea company is the introduction of the high-quality ice tea production, which was first embraced by the firm. The product that quickly became a healthy substitution of soda water gained many appraisals from the world tea-lovers. Therefore, the threat of new entrants into the industry regards the manufacturing of cold tea products. Consequently, the firm maintains a sustainable innovation of ice tea products throughout its functioning so that to prevent the possibility of being outrivaled.

The company is famous for the powerful cohort of active buyers. The product falls into the category of the daily goods, which are famous among the customers from the whole world. Therefore, Lipton Tea that possesses the highest production ratings accounts for the large percentage of the clients costs.

The possibility of suppliers substitute is irrelevant in regard to the Lipton Tea firm, for the company receives the production materials from one of the most famous tea estate, Unilever, which partly accounts for the global success of the product (Bouckley, 2013).

The Lipton Tea value chain embraces the steps of producing, processing, trade, tea company delivery, and retailing. The successful strategy of the firm production dwells on both the high-quality Unilever materials and marketing strategies.

Since the production of Lipton Tea is on the top of beverage marketing and possesses a long history of development, there are no exit barriers that might hinder the process of the company closure. Thus, despite the workers of the firm possess some specialized skills, their abilities may be utilized in parallel industries. The threat of individual equipment investment does not apply to the case as well, for the tools that are employed by Lipton Tea manufacture firms can be sold to any tea-production companies (Barriers to entry and exit, 2007).

Lipton Tea Business Level Strategy

The immense success of the Lipton Tea strategic foundation dwells on two major factors, which are products variety and quality. Thus, the tea-based beverages that are offered by the firm evolve in a broad range of forms. Mainly, the company promoted the active lines of zero calories green tea, ice tea mixtures as well as a variety of collections of traditional leaf and bag tea.

The constant innovation draws the crowds of new clients as well as maintains the interest of the regular buyers. Finally, Lipton Tea production is based on the usage of the high-quality Unilever estate leafs, which contributes to the establishment of effective business maintaining.