Green Mountain Coffee Roasters and Keurig Coffee Course Essay

Company InformationCompany hurl-to doe with squirt ken chocolate Roasters and Keurig chocolate berry Website http//www.greenmountain java tree.comFounded in- 1981 primer/History/Company Timeline1981- verdure bunch coffee bean Roasters was established with a small coffee shop. 1993- ballpark Mountain Coffee Roasters, started publicly traded on NASDAQ discipline stock market. 2006- greenness Mountain Coffee Roasters, Inc., compass KEURIG Coffee Company and started manufacturing hit cup coffee. 2010- Green Mountain Coffee Roasters, Inc. Acquired Diedrich coffee and also bought cutting edge Houtte coffee services company. 2011- Green Mountain Coffee Roasters, Inc. sold Fresh Filter US coffee services potion of Van Houtte p arntage to Aramark. Green Mountain Coffee Roasters, Inc. cooks its operations through SCBU (Specialty coffee caper), KBU (KEURIG business unit), CBU (Canadian business unit) operation units. SCBU makes and sell coffee, longing coco, afternoon tea leaf and several former(a) deglutitions. KBU focus on wholeness cup brewing trunk which includes coffee, tea hot chocolates. CBU take c ars of Canadian market. They sell coffee and tea with other beverages. Mission and Values of GMCR.PURPOSE We give the ultimate beverage experience in each life we touch from source to cup transforming the air the world understands business. Our MISSION A Keurig brewer on all counter and a beverage for e actually occasion. Our VALUES We partner for mutual success. Our boundary slight(prenominal) approach to collaboration creates benefits for all. (www.keuriggreenmountain.com) SWOT ANALYSIS military posture1Strong overlap portfolio and leader in the market.2Loyal clients.3All harvest-times turn over industrial-strength revenue growth. Gives a soused competitory advantage.4Corporate image built on strong sustainability initiatives.5Good financial strength. weakness1Dep removeency on china for single cup brewer is a big claw back. 2De pendency on some retailers companies which are the big potion of revenue. 3Cost of the products is precise(prenominal)(prenominal) noble reference to single custom at home. 4Patents of all the sub companies are not so easy to maintain.Opportunities1Have several opportunities in the field of different drinks. 2Have hike up opportunities to expand to different part of world. 3.Strategic agreements to long pillow revenues.Threats1Completion in the segments of Coffee is very high gear.2More acquisition there is more than challenges to maintain brand value. 3Demand of high tint coffee is very high. Shortage of coffee beans forget be a task.Analysis VIA door guards Five Forces ModelPorters five force model is a just analysis tool for examine the competitive environment. agonistical environment is describes in terms of 5 forces. The little terror of parvenue entrants- Customers has new choices day to day. To fulfill the fatality Green Mountain Coffee Roasters needs to be ve ry competitive. They need to find out new products. on that point are several low greet products in the market which is attracting local public. This put forward be a threat and Green Mountain Coffee Roasters needs to find out a modal value to reduce the cost and maintain the quality. Single-cup brewing provide crap more competition. Some of the companies let well-grounded financial resources and well-behaved marketing than Keurig. Some of the competitors are Flavia Beverage Systems they are the manufacturer of Mars, Senso brewing system etc. The talk terms 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 counseling they want. So buyers are ready to pay the cost. There is less bargaining because of loyal customers. O customers. They whitethorn look at some alternate products. notwithstanding still number of choices is fewer Buyers find very difficult to switch the company as they will not find what they need. So they try to capture with one. This is a competitive advantage to them. Competitors layaboutnot provide what refreshed direct stern 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 have except one supplier from China. They can rule GMCR and can consider deliveries and quality. This can over all restore 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 stron g competition to them. The intensity of contest among competitors in an industry- Other manufacturer started giving good offers with comparison to Keurig was offering. Market started to become overpower. This created confusion amid customers. They dont know what product is best.They were victim of competition.Strategy UsedGMCR has strategically taken a good move to expand its business in broader way. The first strategy 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 one thousand thousand 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 approximately ha lf of those were Keurig brewers.8 While Keurig brewers were estimated to be in 30 percent of offices in New England, national brainstorm in the office channel was only slightly 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 confront by GMCR.a) Manufacturer and trade risk- GMCR products are manufacturer in China. They are under risk of spoken language and cost. Fully depended on those companies. Any production interrupt will direct affect the profitability of GMCR.b) inappropriate exchange rates may affect the end product cost.c) Government policies and relationship with both sphere may affect the business.d) Product recall and product liability is a potential danger. Any quality compromise by manufacturer will now impac t GMCR.e) Loosing competitive advantage of GMCR because the products are fabricate in China and possibility of losing technology secrets. f) endangerment of Integrated Acquisitions- Lot of risk is there to deal acquisitions, because of company culture and business.g) venture of fluctuating good 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), inaccessibility of this beans may affect the business of GMCR.Course of achievement recommendeda) Should be very careful while doing acquisitions. aim to look the country culture, company culture and late(prenominal) 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 amount of product based on customers requirements.d) Keep approximate look o n competitors and there technology.e) Keep on improving the products by doing research and development.f) Cover all(prenominal) segment of people with something new for them.OpinionAs 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 mind 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?ReleaseID=8321892) Dess. Strategic solicitude text and cases, 6th Edition. McGraw-Hill Learning Solutions, 2012. VitalBook file.3) http//www.keuriggreenmountain.com/en/OurCompany/OurValues.aspx