Green Mountain Coffee Roasters and Keurig Coffee Course Essay

club Information confederation Name common land Mountain chocolate Roasters and Keurig Coffee Website http//www.greenmountain deep brown.comFounded in- 1981Background/History/ c each(prenominal)er Timeline1981- Green Mountain Coffee Roasters was established with a small coffee shop. 1993- Green Mountain Coffee Roasters, started publicly traded on NASDAQ national stock grocery. 2006- Green Mountain Coffee Roasters, Inc., Acquire KEURIG Coffee Company and started manufacturing individual cup coffee. 2010- Green Mountain Coffee Roasters, Inc. Acquired Diedrich coffee and also bought train Houtte coffee serve company. 2011- Green Mountain Coffee Roasters, Inc. sold angelical Filter US coffee services potion of Van Houtte business to Aramark. Green Mountain Coffee Roasters, Inc. manages its summonss 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 bever ages. KBU focus on single cup create from raw stuff system which includes coffee, tea hot chocolates. CBU take c ars of Canadian market. They sell coffee and tea with other beverages. missionary post and Values of GMCR.PURPOSE We create the ultimate beverage experience in e rattling life we adjoin from source to cup transforming the way the world understands business. Our MISSION A Keurig brewer on e actually parry and a beverage for ein truth occasion. Our VALUES We partner for mutual success. Our boundaryless approach to quislingism creates benefits for all. (www.keuriggreenmountain.com) SWOT ANALYSISStrength1Strong product portfolio and leader in the market.2 true-blue customers.3All products contribute salubrious revenue growth. Gives a strong militant gain.4 corporate image built on strong sustainability initiatives.5Good financial strength.Weakness1 habituation on china for single cup brewer is a big draw back. 2 habituation on some retailers companies which are the b ig potion of revenue. 3Cost of the products is very high reference to single use at home. 4Patents of all the sub companies are not so easy to maintain.Opportunities1Have several opportunities in the field of divergent drinks. 2Have further opportunities to expand to different part of world. 3.Strategic agreements to bolster revenues.Threats1Completion in the segments of Coffee is very high.2 more acquisition there is more challenges to maintain brand value. 3Demand of high character coffee is very high. Shortage of coffee beans will be a task.Analysis VIA Porters quintuple Forces ModelPorters five force model is a safe(p) analysis motherfucker for examine the competitive environment. Competitive environment is describes in terms of 5 forces. The threat of rude(a) entrants- Customers has new choices day to day. To fulfill the requirement Green Mountain Coffee Roasters hires to be very competitive. They need to honor out new products. at that place are several low cost prod ucts in the market which is attracting local public. This jackpot 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 take up 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 main(prenominal) for a successful business.Green Mountain Coffee Roasters provides the customers the beat out 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 alternate products. But still number of choices is fewer Buyers find very difficult to turn the company as they will not find what they need. So they try to stick with one. This is a competitive advantage to them. Competitors dejectionnot provide what fresh direct gage provide. Low dependency on distributors is an enlargeed 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 have only one supplier from mainland China. They can rule GMCR and can move 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 with comparison to K eurig was offering. trade started to become overpower. This created confusion between customers. They dont know what product is best.They were victim of competition.Strategy utilizeGMCR has strategically taken a good move to expand its business in broader way. The first dodge they used was acquisition of other coffee brand. They acquired Tullys coffee brand and later they also acquired herds grasss 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 somewhat 2.6 million coffee brewers in offices nationwide serviced by a net twist of approximately 1,700 distributors. Of those offices, GMCR estimated that 12 percent had single-cup brewers, and about half of those were Keurig brewers.8 While Keurig brewers were estimated to be in 30 percent of offices in vernal England, national penetration in the office channel was only about 6 percent. (Dess C301)GMCR has cover 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) producer and trade risk- GMCR products are manufacturer in China. They are under risk of delivery and cost. Fully depended on those companies. Any production delay will direct affect the profitability of GMCR.b) Foreign exchange grade may affect the end product cost.c) Government policies and relationship with both country may affect the business.d) Product recall and product liability is a potential danger. Any quality compromise by manufacturer will directly impact GMCR.e) Loosing competitive advantage of GMCR because the products are manufactured in China and possibility of losing technology secrets. f) Risk of Integrated Acquisitions- Lot of risk is there to manage acquisitions, because of company finishing and business.g) Risk of fluctuating commodity cost- Fluctuation in commodity will affect the price of Coffee. This can impactthe price of products.h) Risk of coffee availability- there are some very high quality coffee beans (Arabica coffee beans), unavailability 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 kick downstairs 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 closer look on competitors and there technology.e) Keep on improving the products by doing research and development.f) Cover every segment of batch with something new for them.OpinionAs a leader in specialty coffee, coffee mak ers, 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 providential 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 loyal 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 surprise there loyal customers. (March 2014)References1) Keurig Green Mountain, Inc. Launches 2013 Sustainability Report with New 2020 Targets. March 2014. http//investor.keuriggreenmountain.com/releasedetail.cfm?Rele aseID=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