Case Write Up on Keurig Essay

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Case Write up Keurig It is essential that Green Mountain’s negotiation succeed because the value proposition that comes along a new product like the portion pack system. Keurig is a start up coming looking to expand its business venture and GMCR central location is in the Northeast and they were also looking to expand the company’s geographic existence. With expansion ideas in mind as a common ground for both companies, it would be smart and beneficial for the companies to work towards this specific goal. Keurig would make it feasible for GMCR to sell the K-cups it will eventually produce in parts of the country they are not already connected to once the Keurig goes national. There is major room for them to grow and to be…show more content…
With this being said they must find ways successfully spread out some the overheads costs that are in dire need of attention or raise more money. The VC’s are saying that they will not receive any more money until they have proven track of strong sales. A successful negotiation would help alleviate their economics burdens they are currently incurring this is why it is important so they do not end up in the worst situation where they cannot get money from the VC’s, angels investors or investments banks and have to go out of business. Keruig has 2 BATNA’s the first is they can each other try to find other roasters to contract with like Starbucks, Swiss Miss, Folgers or more regional companies like Van Houtte of Canada and Diedrich of South California. Their second BATNA was to revert back to the old plan and produce their own branded line True North Coffee. Under this plan they would have to raise a lot more capital from angels and private investors. This approach would come with a lot of obstacles such as higher costs, possibility of a lower valuation One of the biggest barriers from GMCR’s standpoint is that they realize they can possible build up sales and marketing for the Keurig system once they start producing and endorsing the product. They are capable of doing so because of the position that GMCR is in as an emerging

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