Analysis of Healthy Innocent Company

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Healthy Innocent Company is a UK-based organization started by three friends, Richard, Adam, and Wright. The company specializes in the production of healthy foods and drinks, increasing its target demographic of consumers interested in a good lifestyle. In an analysis of the case study, the core competency and the recommendation for the company’s future growth are identified and noted. The analysis will further incorporate the VIRO model to evaluate the organization’s potential competencies for future developments.

Core Competencies of the Company

In reviewing the case study, the main core competencies identified include product differentiation, leadership, and sustainable marketing strategy. The product differentiation competency has been the stronghold of its performance and strength in penetrating new markets. The food and drink industry faces rapid changes, especially with the lifestyles that consumers are embracing due to increase technology. The company is aware of the factors driving their consumers, which mainly involve product differentiation. As such, they have diversified their products to meet the expectations of their clients at an affordable cost. Alongside the healthy smoothies, the company introduced the veg pots providing their clients with a range of other good food from fresh vegetables to whole grains, herbs, and spices at a relatively affordable cost. This product differentiation has allowed the firm to stay relevant in the industry and sustain the competition from other organization. The company also produced eco-friendly packages, which other supermarkets could use as shopping bags, expanding its product differentiation into other segments of their market operation. This core competency has allowed the company to remain relevant in the industry and challenge its competitors.

The second core competency reflected in the case study is visionary leadership. The company has a well-structured and functional leadership system that has helped expand its operation since its development. The three co-founders have managed to push the company to become top marketers of smoothies and juice in the UK and Europe. Under the board of directors, the company has currently moved towards a new business venture and expanded its operations in new markets. Communication within the leadership has been effective in creating a cohesive culture in the company. Nonetheless, through effective leadership, the company exceeded its growth stage and expanded into a new market. The management has also embraced the corporate social responsibility approach, which has connected the company to the neighboring community. This has expanded its engagement in understanding their market demographic preferences, which has increased client-base and profitability.

The last core competency for the company is implementing sustainability in its marketing strategy. Healthy Innocent is concerned with its consumers’ health and maintains consistency in the production of healthy smoothies and juices while conserving the environment. The company has maintained sustainable operation through its products and packaging. For instance, their juice packages are made of a hundred percent recyclable plastic, making them eco-friendly (Sahlman, 2004). Moreover, the company has maintained naturalness in its juices and smoothies, making the product unique and healthy for its consumers. This innovative approach has helped the company attract new customers that are interested in living a healthy life. The firm’s sustainable products and services have given it a market lead and a unique product orientation from its competitors. As such, the company has managed to increase its market share by 50%, primarily through its naturalness product and sustainable packaging that reflect its operation and marketing service (Sahlman, 2004). Since all the market products are substitutable and obtained locally, the company has maintained its uniqueness by adopting sustainable service, which has significantly contributed to its stability in the industry.

VRIO Model Framework

Core competency Valuable Rare Inimitable Organized
Product differentiation
Sustainable marketing strategy

Options for Future Growth

One of the options for growth that Healthy Innocent is considering is market expansion. Currently, the company has a narrow market, and increasing its coverage will help in creating a larger consumer-base. Healthy Innocent is planning to differentiate itself into a new market by integrating its business operation with Coca-Cola. This will not only boost its brand but integrate its eco-friendly products into a new market. The option of product diversification is also set to increase the company’s future. This plan will allow the organization to adopt new products into their service and enhance its client-base by providing different products that align with their clients’ interests.

Nonetheless, the company introducing a new brand of products and services will help create a new client-line and strengthen customer loyalty. The company prides itself on producing 100% pure and healthy juices and smoothies, making the market differentiation a suitable strategy that would increase its operation. Expanding into new regions will increase the company’s performance and enhance its portfolio. Thus, the market penetration will allow the company to diversify its product and brand and increase its client-base. The company’s market share in the UK is about 78%, which is a strong point (Sahlman, 2004). However, for future growth, the international platform is important for the development of the firm. As such, market penetration can help the company establish a strong engagement and reduce competition at the local base. Moreover, the engagement into new fields will give the company a wider brand image identified in Europe and worldwide. In this case, the base recommendation for the company’s future growth is through engaging into the international segment that can help expand its brand awareness and strengthen its competitiveness in the local industry in Europe.

The risk associated with market entry is uncertainty in the industry that Healthy Innocent will experience if they choose this option to expand their future growth. To manage the risks effectively, the organization needs to integrate its operation with Coca-Cola Company to expand into a new market. Moreover, the alliance between the company and Coca-Cola will help create a strong driving force for the company to enter the market strong. Healthy Innocent has a weak market force, but integrating or forming an alliance with other companies such as Coca-Cola can help the company penetrate new markets. This is possible because of the established brand image that Coca-Cola already has in the industry. Moreover, the company has a strong product value and customer social relationship (CSR) that helps it enter new regions with minimal resistance in penetrating a new market. This will provide a stable association with the clients and increase its influence in the sector.


In summation, Healthy Innocent specializes in the production of healthy foods and drinks, increasing their target demographic of consumers interested in healthy living. The main core competencies that can be identified include product differentiation, leadership, and sustainable marketing strategy. The competency has been the stronghold of the company’s performance and strength in entering new markets. The recommendation for future growth that the organization should consider is market expansion. This recommendation will help the company reach into new markets and increase its profitability.


Sahlman, W.A. (2004). Innocent Drinks. Harvard Business School. Web.

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