Keurig's Swot Analysis (2008)

Topics: Coffee, Keurig, Coffee preparation Pages: 3 (972 words) Published: August 6, 2012
Keurig’s strategy continues to be differentiation. The company has managed to outperform its competitors by offering high-quality single-cup coffee brewers and a wide variety of coffee portion packs called K-Cups. Users of Keurig brewers can enjoy a cup of great tasting coffee, tea or hot cocoa every time. The cup of coffee is brewed in less than a minute, there is no need to grind coffee or use filters, and cleaning up is as easy as it gets. Keurig brewers use coffee portion packs called K-Cups. There are over 200 different blends and flavors available from 13 brands, including Newman’s Own, Tully’s, Celestial Seasonings, Bigelow, Emeril’s, and Caribou. Keurig is the leading single-cup brewing system in the at-home market, with 82 percent of the market share in terms of dollar sales and 81 percent in terms of unit share as of December 31, 2008. In 2008, GMCR (Keurig’s parent company) reached $500 million in sales while 10 years ago its sales were $43 million. 84 percent of GMCR’s total revenues are derived from the sale of Keurig single-cup brewers and K-Cups. When comparing 2008’s numbers to those of the previous year, sales increased by 46 percent and Keurig system-wide shipment of K-Cups increased by 59 percent. Keurig’s mission statement is “to be a leader in the specialty coffee industry by selling high-quality coffee and innovative coffee brewing systems that consistently provide a superior coffee experience.” The company credits its success to its ability to execute and innovate in the marketplace. Bob Siller, GMCR’s founder and chairman of the board, describes Keurig as a “technology company dedicated to continuous innovation and improvement of single-cup brewers that truly change the way coffee is consumed.” Although Keurig is a very successful company at this time, it should not take this success for granted. Instead, it should expect to face intense competition in the near future. The single-cup brewer market is still in the early stages of its...
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