The Honest Company Harvard Case Solution & Analysis

Introduction

The Honest Company has been a consumer goods organization which has been co-founded by Jessica Alba. The company has basically emphasized on the no toxic household products that are supplied to the market place for the ethical consumerism. The company has been anticipated to introduce itself as an initial public offering in the coming future. The company has been serving the needs of Canadian and the United States market and it is also planning to enter the English, Chinese and Australian market in the coming future.

The inspiration which made Jessica Alba to start the business easy because in 2008 when she gave birth to her first child Honor, and while she herself has been an ill child in her childhood, she therefore wanted to start a company which can provide an alternative to the prevalent baby products that are more often than not alleged with the toxins that are harmful for children.

The traditional products manufactured at the company are made of petrochemicals and synthetic fragrances. Alba had a vision, she had a tough but to actually execute the plan and to find a partner for her business proposal it took her almost three years when she finally found three major partners in Brian Lee who became the CEO, Sean Kane the COO and Christopher Gavigan the CPO.

The company started off in the year 2011;initially it had 17 products to offer to the customers or the industry. In the year 2013, only after two years of service, The Honest Company has earned sales of $50 million. In the year 2014, the company has more than 275 employees and the projected sales in the coming period are $150 million. However, one important thing which has to be noted is that the 80 % sales for the company comes through online channel where a monthly subscription service, while the remaining 20% sales comes through the discount warehouses and the departmental stores.

The companyHonest has raised a total of $70 million from venture capitalists in order to prepare its imminent IPO. The major products of the company are available at all the famous and major retailers of the Canadian and the United States market.

Along with this, The HonestCompany is also planning to expand itself in the differentparts of the world such as the Australian, the English and the Chinese markets to further expand and provide its services to the various people of the world who are actually looking for such healthy and sustainable products for their babies.

Vision of Health and sustainability

The idea of the company is to basically look to reduce the ubiquitous presence of the products that are made of toxic chemicals in the natural environment, the man made environment and the personal environment.

The company looks to protect all the natural resources by looking to minimize the waste and by making it reusable. The company also has the vision of supporting peace, social justice and also the security. The Honest Company is promoting diversity and productivity through the different facets oflife; these include the cultural and the ecological facets.

The company has been committed to operate itself with the transparency and the integrity, honesty and humbleness. The company also looks to strive in making the environment clean and healthy.

SWOT Analysis

Strengths:

The major strength for the company The Honest is that it offers eco friendly and sustainable products. The company has been quite keen to offer healthier products to the customers. Along with this, the company sells its products online also.

The financial strength of the company has been one of the major strength for them. Similarly, the customer preference towards sustainable goods makes the brand a successful one. The co-owner of the company Jessica Alba has also been an inspiration in gauging customers.

The Honest Company Case Solution

Weaknesses:

The major weakness for the company is that many customers are not willing to switch to a new brand. Most of them are not even aware of the sustainability and health factors. The prices of the products offered by the company are quite high and become unaffordable for everyone to purchase.

Opportunities:

The major opportunity for The Honest Company is to expand itself in the growing markets of England, China and Australia. Along with this, more customers are moving towards healthy products for their babies, which make the company an ideal spot for the customers.

The company can position itself as a suitable product and can gauge customer attention to a larger extent. It can also look to introduce some products that are reasonably priced so that more customers can be attracted. Along with this, another opportunity for the company is to open up retail stores for the organization where the management can interact with customers directly and on regular basis.....................

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