Swot Analysis : Keurig Green Mountain Essay

GMCR’s warns of the potential impact of the price of coffee on the gross profit margin. To combat this, GMCR had made a number of purchase commitments to ensure an adequate supply of coffee (GMCR Annual Report, 2010). The market price for coffee is impacted by numerous factors including weather, economy, and competition. It is vital that GMCR continue to take proactive measures to secure against unforeseen spikes in coffee prices. The price of coffee does not only impact GMCR’s ability produce coffee for the Keurig brewer under its namesake but impacts their partner suppliers as well. GMCR purchases coffee from brokers, farms, estates, and cooperative groups and essentially diversifies its coffee supply, reducing some supply risk (GMCR Annual Report, 2010).

Strives to be the leader in micro brewing while maintaining the core values it started with and had employee buy in even before it went” 100 % employee owned in2013” (Gorski, 2013).

Buyers ultimately have more bargaining power than the suppliers. This is because Keurig will be more interested in keeping consumers happy so that they can maintain relationships and brand loyalty. For example, consumers can demand new flavors of coffee that fit their personal preference.

The documentary Black Gold, is about the world coffee market and an Ethiopian fair trade cooperative. Ethiopia being the birthplace of coffee is the largest producer of coffee in the world, producing some of the highest quality of coffee beans in the world, like Harar, Yuban and Sidamo types of coffee. The significant problems pointed out in this documentary show what is wrong in the global trading system. Mainly, while most of us continue have our lattes and specialty coffees, the amount paid to the Ethiopian coffee farmers is so low that a lot of them have been forced to chop down some of their coffee fields and rely on other crops to help them survive. The Ethiopian people are malnourished; they have no clean water, no healthcare, and no schools for their families. As quoted in the film, “They are living hand to mouth”.

Although the company is known for their coffee, they also drive a great portion of their revenue from baked good sales, which differs greatly from the Keurig Green Mountain strategy. Dunkin does compete against Dunkin intensely in the New England market, as both companies were founded and based in the area.

The Keurig coffee brewer is the leader in the retail market for single serves coffee brewers but it can do better. Keurig has been slowly losing some of its share of the retail market in recent years. In 2011 Keurig controlled 54 percent of the market which is down from its 2010 number of 60 percent and 2009 number of 63 percent (Geller). Keurig needs to take its product and it has to offer and enter into new markets and segments. It mainly needs to focus on the younger and lower income level of its

Green Mountain Coffee Roasters, Inc. (GMCR) was founded in 1981 as a small café and combined with Keurig in 2006 (About GMCR, 2004-2009). GMCR produces specialty coffee and coffee makers; Keurig is the maker of a single cup coffee maker as well as specialty teas and coffees. Keurig was founded in 1998 on the concept that one should be able to make coffee one cup at a time rather than one pot at a time (Coffee.org, unknown). Today, GMCR has acquired and merged with several specialty coffee brewers and Keurig

Internal risks of Keurig Green Mountain include lack of global brand recognition, customization of products, and cost. External risks are macroeconomic factors to include the economic conditions of Kuwait and the regulatory and legal structure of the country. The most critical microeconomic risks associated with expansion to Kuwait include competitors in the market, establishing competitive pricing for products, and consumers. An analysis of projected financial

Keurig Green Mountain envisions itself as a company leading the industry with technology. After conducting thorough research, it is notable that Keurig has had a sustainable advantage for several years. Despite the fact that Keurig pods are five times as expensive as buying coffee grounds, averaging over fifty dollars a pound for even the lower end coffees. If this is compared to the fact that a

The company had formulated a customer service charter, clearly projecting both the company mission statement and products and services offered, so as to inform the staff and customers what the company standards are. These standards covers quite detailed aspects of the service; such as how many times the telephone will be allowed to ring until the caller is get response. Other issues might include how many days between receipt and response for written correspondence and complaints procedure and timescales for each stage. We look at the strengths weaknesses, opportunities and threats of Green Mountain Coffee Roasters and Keurig coffee Company in the coffee production and sale industry.

Keurig Green Mountain has revolutionized the coffee market in the United States and Canada. The company has developed the most innovative brewing technology that offered consumers a single-serving of a wide variety of specialty coffees, coffee makers, teas, and other beverages (Keurig Green Mountain, 2016). In the past two years, Keurig Green Mountain sales have declined in the United States. (Keurig Green Mountain, 2015). The U.S. single-serve coffee market is saturated with alternative coffee sources for consumers. Due to declining revenues and market saturation in the U.S. market, Keurig is looking to expand its coffee brand to Kuwait.

Weigh the challenges confronting Keurig. What are the greatest risks for Keurig? What recommendations can be made to support Keurig’s growth and profitability objectives?

Keurig has been successful in selling its coffee brewing system to the office coffee segment (OCS) of the US market. This success led its leaders to ponder entering the consumer market. While making the move might seem like a reasonable next step in the development of the company core business, it also presents unique challenges.

Keurig Inc.’s main concern is how to obtain the position they want in the at-home coffee market

rable general economic conditions in the markets in which they operate that adversely affect consumer spending;