Green Mountain Coffee Roasters and Keurig Coffee Course Essay

Company InformationCompany Name kB quite a little drinking chocolate Roasters and Keurig burnt umber Website http//www.greenmountaincoffee.comFounded in- 1981Background/History/Company Timeline1981- Green people drinking chocolate Roasters was established with a small coffee shop. 1993- Green weed Coffee Roasters, started publicly traded on NASDAQ national stock merchandise. 2006- Green weed Coffee Roasters, Inc., Acquire KEURIG Coffee Company and started manufacturing private cup coffee. 2010- Green muckle Coffee Roasters, Inc. Acquired Diedrich coffee and in addition bought Van Houtte coffee serve company. 2011- Green Mountain Coffee Roasters, Inc. sold Fresh Filter US coffee services potion of Van Houtte business to Aramark. Green Mountain Coffee Roasters, Inc. manages its operations through SCBU (Specialty coffee business), KBU (KEURIG business unit), CBU (Canadian business unit) operation units. SCBU makes and cheat on coffee, hot coco, tea and several new(preno minal) drinkings. KBU focus on single cup brewing system which includes coffee, tea hot chocolates. CBU take c bes of Canadian market. They sell coffee and tea with other beverages. Mission and Values of GMCR. subprogram We create the ultimate beverage experience in either life we touch from source to cup transforming the way the world lowstands business. Our MISSION A Keurig brewer on e real counter and a beverage for e really(prenominal) occasion. Our VALUES We partner for mutual success. Our boundaryless(prenominal) approach to quislingism creates benefits for all. (www.keuriggreenmountain.com) SWOT ANALYSISStrength1Strong mathematical product portfolio and draw in the market.2Loyal customers.3All products contribute fast(a) revenue growth. Gives a strong agonistical advantage.4Corporate fancy built on strong sustainability initiatives.5Good financial strength. helplessness1Dependency on china for single cup brewer is a big draw back. 2Dependency on whatever retailers companies which atomic number 18 the big potion of revenue. 3Cost of the products is in truth high author to single use at home. 4Patents of all the sub companies are not so easy to notice.Opportunities1Have several opportunities in the field of unlike drinks. 2Have further opportunities to expand to distinguishable part of world. 3. strategical agreements to bolster revenues.Threats1Completion in the segments of Coffee is very high.2More attainment there is more challenges to maintain brand value. 3Demand of high quality coffee is very high. Shortage of coffee beans depart be a task.Analysis VIA door guards Five Forces ModelPorters five fury model is a good analysis tool for examine the competitive environment. Competitive environment is describes in terms of 5 forces. The holy terror of bracing entrants- Customers has rising choices day to day. To fulfill the requirement Green Mountain Coffee Roasters needs to be very competitive. They need to find out new products. t here are several low be products in the market which is attracting local public. This can be a threat and Green Mountain Coffee Roasters needs to find out a way to rivet the cost and maintain the quality. Single-cup brewing will nurture more competition. any(prenominal) of the companies turn over good financial resources and good marketing than Keurig. Some of the competitors are Flavia Beverage Systems they are the shaper of Mars, Senso brewing system etc. The bargain power of buyers- Loyal customer is very important for a sure-fire business.Green Mountain Coffee Roasters provides the customers the best they want and the way they want. So buyers are ready to pay the cost. There is less negociate because of liege customers. O customers. They may look at some alternate products. provided still number of choices is fewer Buyers find very difficult to pound the company as they will not find what they need. So they turn in to stick with one. This is a competitive advantage to them. Competitors cannot provide what fresh cultivate can provide. Low dependency on distributors is an added advantage with Fresh Direct. This will reduce the bargaining power of buyers. Due to variety of range products buyers has less choice and this is good and positive for Green Mountain Coffee Roasters The bargaining power of suppliers-The biggest problem is with Keurig, supplies are fully depended on outside supplier. They puzzle only one supplier from China. They can rule GMCR and can mask deliveries and quality. This can over all affect the company performance and business. The threat of substitute product and services- Company has an advantage in their field. There is very less strong competition. They are the leader in the coffee segments. There are several companies who have lowered process cost and cost of the product. They may give strong competition to them. The intensity of rivalry among competitors in an industry- Other manufacturer started giving good offers w ith comparison to Keurig was offering. Market started to sire overpower. This created confusion between customers. They dont know what product is best.They were victim of competition.Strategy UsedGMCR has strategically taken a good exit to expand its business in broader way. The first outline they used was acquisition of other coffee brand. They acquired Tullys coffee brand and later they also acquired Timothys Coffee. GMCR focused on individual customer in home and offices. They have launched different products which can be used in offices and home. By doing this they have expanded there market share very broadly. There were approximately 2.6 million coffee brewers in offices nationwide serviced by a network of approximately 1,700 distributors. Of those offices, GMCR estimated that 12 percent had single-cup brewers, and astir(predicate) half(prenominal) of those were Keurig brewers.8 While Keurig brewers were estimated to be in 30 percent of offices in newborn England, natio nal penetration in the office channel was only about 6 percent. (Dess C301)GMCR has covered hotel industry in broader way. They have several hotels in North America which use GMCR products. This was one of the best strategies which worked for expansion of their product range. Issues and Challenges Facing this CompanyFollowing issues and Challenges are being faced by GMCR.a) Manufacturer and trade risk- GMCR products are manufacturer in China. They are under risk of delivery and cost. Fully depended on those companies. Any production tick off will direct affect the profitability of GMCR.b) Foreign exchange rank may affect the end product cost.c) Government policies and relationship with twain country may affect the business.d) Product recall and product obligation is a potential danger. Any quality compromise by manufacturer will directly impact GMCR.e) Loosing competitive advantage of GMCR because the products are manufacture in China and possibility of losing technology secrets . f) Risk of Integrated Acquisitions- dowery of risk is there to manage acquisitions, because of company socialisation and business.g) Risk of fluctuate commodity cost- Fluctuation in commodity will affect the legal injury of Coffee. This can impactthe price of products.h) Risk of coffee availability- there are some very high quality coffee beans (Arabica coffee beans), inaccessibility of this beans may affect the business of GMCR.Course of action recommendeda) Should be very careful while doing acquisitions. Need to look the country culture, company culture and past background.b) Need to develop an alternative of China for manufacturing the products. It can be India. Dependency with china should not be there.c) Need to add different products and expand their list of product based on customers requirements.d) Keep close-set(prenominal) look on competitors and there technology.e) Keep on improving the products by doing research and development.f) Cover every segment of people wit h something new for them. intuitive feelingAs a leader in specialty coffee, coffee makers, teas and other beverages, Keurig Green Mountain (Keurig) is recognized for its award-winning beverages, innovative Keurig brewing technology, and socially responsible business practices. The Company has inspired consumer passion for its products by revolutionizing beverage preparation at home and in the workplace. My opinion GMCR is one of the strongest companies. They have strong financial and strong management. They have a strong strategy which can kill all there competitors. They know how to manage Acquisitions. They have very strong backup with strong companies. They have very patriotic customers and keep on adding day by day. They are in offices, house, hotels, restaurants and everybodys heart. They need to work on their strengths and work in new products to wonder there loyal customers. (March 2014)References1) Keurig Green Mountain, Inc. Launches 2013 Sustainability Report with New 20 20 Targets. March 2014. http//investor.keuriggreenmountain.com/releasedetail.cfm?ReleaseID=8321892) Dess. Strategic Management text and cases, 6th Edition. McGraw-Hill Learning Solutions, 2012. VitalBook file.3) http//www.keuriggreenmountain.com/en/OurCompany/OurValues.aspx