Case Study Report :: Green Mountain Coffee & Keurig Coffee
Company Information
Name :: Green Mountain Coffee Roasters, Keurig Coffee
Website :: www.greenmountaincoffee.com, www.gmcr.com, www.keurig.com
Industry :: Processed & Packaged Goods- Coffee Makers
Background & History
Green Mountain Coffee Roasters, Inc. (GMCR) was founded in 1981 as a small café and combined with Keurig in 2006 (About GMCR, 2004-2009). GMCR produces specialty coffee and coffee makers; Keurig is the maker of a single cup coffee maker as well as specialty teas and coffees. Keurig was founded in 1998 on the concept that one should be able to make coffee one cup at a time rather than one pot at a time (Coffee.org, unknown). Today, GMCR has acquired and merged with several specialty coffee brewers and Keurig licenses the patents for creating single cup, or K-cup, coffee packages including Dunkin Donuts and Starbucks coffee (Dess, Lumpkin, Eisner, & McNamara, 2012).
SWOT Analysis Strengths- Brand strength- Unique & large variety of products- Customer loyalty- Environmentally conscience, socially responsible- Innovative products and research- Strong growth potential- Product consistency | Weaknesses- Not a strong online presence- Supplier dependence- Concentrated customer base- Single product line- Returns- Keurig defects- Capacity constraints | Opportunities- Expanding to new markets- Collaborations- Increased purchases - Keurig Acquisition- Expansion to hotels and businesses- Expand suppliers | Threats- Intense Competition- Changing consumer tastes- Large variety of products in the industry- Instability in coffee growing regions- Food and Safety Regulations- Patents expiration |
(Dess, Lumpkin, Eisner, & McNamara, 2012) * Product differentiation; customer loyalty and brand identity * High cost and risk * Access to distribution and suppliers * Product differentiation; customer loyalty and brand identity * High cost and risk * Access to distribution and suppliers
Potential Entrants
{Threat
Name :: Green Mountain Coffee Roasters, Keurig Coffee
Website :: www.greenmountaincoffee.com, www.gmcr.com, www.keurig.com
Industry :: Processed & Packaged Goods- Coffee Makers
Background & History
Green Mountain Coffee Roasters, Inc. (GMCR) was founded in 1981 as a small café and combined with Keurig in 2006 (About GMCR, 2004-2009). GMCR produces specialty coffee and coffee makers; Keurig is the maker of a single cup coffee maker as well as specialty teas and coffees. Keurig was founded in 1998 on the concept that one should be able to make coffee one cup at a time rather than one pot at a time (Coffee.org, unknown). Today, GMCR has acquired and merged with several specialty coffee brewers and Keurig licenses the patents for creating single cup, or K-cup, coffee packages including Dunkin Donuts and Starbucks coffee (Dess, Lumpkin, Eisner, & McNamara, 2012).
SWOT Analysis Strengths- Brand strength- Unique & large variety of products- Customer loyalty- Environmentally conscience, socially responsible- Innovative products and research- Strong growth potential- Product consistency | Weaknesses- Not a strong online presence- Supplier dependence- Concentrated customer base- Single product line- Returns- Keurig defects- Capacity constraints | Opportunities- Expanding to new markets- Collaborations- Increased purchases - Keurig Acquisition- Expansion to hotels and businesses- Expand suppliers | Threats- Intense Competition- Changing consumer tastes- Large variety of products in the industry- Instability in coffee growing regions- Food and Safety Regulations- Patents expiration |
(Dess, Lumpkin, Eisner, & McNamara, 2012) * Product differentiation; customer loyalty and brand identity * High cost and risk * Access to distribution and suppliers * Product differentiation; customer loyalty and brand identity * High cost and risk * Access to distribution and suppliers
Potential Entrants
{Threat
References: About GMCR. (2004-2009). Retrieved June 1, 2012, from GMCR: http://www.gmcr.com Bright, S. (2012, May). Brewing up community support and corporate challenges. Retrieved June 1, 2012, from Branding for Good: http://www.brandingforgood.org Coffee.org. (unknown). A brief history of Keurig. Retrieved June 4, 2012, from Coffee.org: http://www.coffee.org Dess, G., Lumpkin, G., Eisner, A., & McNamara, G. (2012). Strategic Management: Text & Cases, 6th Edition. New York City, NY: McGraw-Hill. Invest in the Markets. (2011, September 28). The Evening Investor Strategy – GMCR . Retrieved June 9, 2012, from Invest in the Markets: http://www.investinthemarkets.com Morningstar. (2009). Green Mountain Coffee Roasters, Inc. Retrieved June 5, 2012, from Morningstar Equity Research: http://www.nasdaq.com Phillips, M. (2011, October 23). Continued Options Strategy For Green Mountain Coffee Roasters. Retrieved June 6, 2012, from Seeking Alpha: Read.Decide.Invest: http://seekingalpha.com Stock Picks. (2012, June 1). Green Mountain Coffee Roasters Still Percolating Problems. Retrieved June 9, 2012, from Top Stocks for 2012: http://stockskandy.blogspot.com Yahoo Finance. (2012, June 8). Green Mountain Coffee Roasters Profile. Retrieved June 10, 2012, from Yahoo Finance: http://finance.yahoo.com