Innocent was established by 3 friends who studied together at Cambridge University in 1999.  Their initial investment was £500, the company is now worth over £200 million  According to Mintel Innocent owns over 79% of the smoothies market in the UK, 1% less than last year.  Retail value increase 9.5%
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Political Trading Standards Fair Trading (Rain Forest Alliance) Advertising Standards Agency (RDA) Economical Cost of production Increasing prices of ingredients Manufactures not wiling to produce fresh fruit products Social 10% of given to charity and the Innocent Foundation Health awareness more recognised 100% fresh fruit contributes towards consumers RDA

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Technological 100% recycled plastic bottles 25% recycled labels Innovation Backing from government Targeting young children (yogurt tubes) Legal Safety Laws Rules and regulations of marketing (misleading consumers) Employment Laws (UK and of the suppliers) Safe environment, reasonable working hours and wage of suppliers. Environment Producing products which will not affect the environment Recycled plastic bottles, trying to make labels 100% recycled Reduce waste and cut down on pollution Friendly working environment

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Threat of entry Companies selling similar product Low barrier as not many competitors

Threat of substitutes Juices Fruits Vegetables
Power of buyers Internet Friendly customer based service healthy Power of suppliers - Supplier s that abide by fair working terms Rivalry between competitors - Own brand smoothies

Threshold resources  Core competencies
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Its self-defined ethical principle (5S) Physical resources FInancial resources Human resources Intellectual capital

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Value 100% natural, delicious and nutritionally International Labour Organisation standards return, charity Rarity 77.5% . Smoothies are their main product thirty products unique capability. Inimitability a good relationship with customers recipe feedback Non-substitutability the growing health trends

Innocent studied and continues to study the environments enabling it to make the right decisions on what is the best way to deal with them for its own benefit and the benefit of the customers it serves.  The economic environment concerns the business cycle which is characterized by various stages. There are the recession, depression, recovery and boom stages.  (Pfeffer et al 2001). The recession is when the economy of the country is going down and at this time employment goes down and the profits of the organization also goes down.  Innocent maximised on such opportunities and lowered its prices in order to get more customers to it. It was therefore able to make good sales before the situation worsened.
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The other companies on the other hand were too late in handling the situation and therefore sold their drinks at throw away prices

Value Chain Analysis identified the most value is added by the marketing and customer involvement.  Its the advertising of the brand.  The way the company has evolved and directs its staff into specified teams but how they feel valued as members of the organisation. 