busn 412 week 6 assignment

Topics: Coffee, Coffea arabica, Green Mountain Coffee Roasters Pages: 9 (1423 words) Published: June 24, 2014

Case Study Report: Green Mountain Coffee Roasters and Keurig Coffee Course – Business Policy (BUSN 412)
Student Name – Inderjeet Singh
Subject – Assignment week 6
University – DeVry University
Date – 06/14/2014

Case Study Report: Fresh Direct

Company Information
Company Name – Green Mountain Coffee Roasters and Keurig Coffee Website – http://www.greenmountaincoffee.com
Founded in- 1981
Background/History/Company Timeline
1981- Green Mountain Coffee Roasters was established with a small coffee shop. 1993- Green Mountain Coffee Roasters, started publicly traded on NASDAQ national stock market. 2006- Green Mountain Coffee Roasters, Inc., Acquire KEURIG Coffee Company and started manufacturing single cup coffee. 2010- Green Mountain Coffee Roasters, Inc. Acquired Diedrich coffee and also bought Van Houtte coffee services 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 sell coffee, hot coco, tea and several other beverages. KBU focus on single cup brewing system which includes coffee, tea hot chocolates. CBU take cares of Canadian market. They sell coffee and tea with other beverages. Mission and Values of GMCR.

“PURPOSE: We create the ultimate beverage experience in every life we touch from source to cup – transforming the way the world understands business.  Our MISSION: A Keurig® brewer on every counter and a beverage for every occasion.  Our VALUES: We partner for mutual success. Our boundary less approach to collaboration creates benefits for all.” (www.keuriggreenmountain.com) SWOT ANALYSIS

Strong product portfolio and leader in the market.
Loyal customers.
All products contribute strong revenue growth. Gives a strong competitive advantage. 4
Corporate image built on strong sustainability initiatives.
Good financial strength.

Dependency on china for single cup brewer is a big draw back. 2
Dependency on some retailers companies which are the big potion of revenue. 3
Cost of the products is very high reference to single use at home.  4
Patents of all the sub companies are not so easy to maintain.  
Have several opportunities in the field of different drinks. 2
Have further opportunities to expand to different part of world.  3.
Strategic agreements to bolster revenues.
Completion in the segments of Coffee is very high.
More acquisition there is more challenges to maintain brand value. 3
Demand of high quality coffee is very high. Shortage of coffee beans will be a task.

Analysis VIA Porter’s Five Forces Model
Porter’s five force model is a good analysis tool for examine the competitive environment. Competitive environment is describes in terms of 5 forces. The threat of new entrants- Customers has new choices day to day. To fulfill the requirement Green Mountain Coffee Roasters needs to be very competitive. They need to find out new products. There are several low cost 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 reduce the cost and maintain the quality. Single-cup brewing will have more competition. Some of the companies have good financial resources and good marketing than Keurig. Some of the competitors are Flavia Beverage Systems they are the manufacturer of Mars, Senso brewing system etc. The bargaining power of buyers- Loyal customer is very important for a successful 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 bargaining because of loyal customers. O customers. They may look at some...

References: 1) Keurig Green Mountain, Inc. Launches 2013 Sustainability Report with New 2020 Targets. March 2014. http://investor.keuriggreenmountain.com/releasedetail.cfm?ReleaseID=832189
2) Dess. Strategic Management text and cases, 6th Edition. McGraw-Hill Learning Solutions, 2012. VitalBook file.
3) http://www.keuriggreenmountain.com/en/OurCompany/OurValues.aspx
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