'Green Mountain Coffee Roasters and Keurig Coffee Course Essay\r'

' c t bulge out ensembleer-out Information\r\n familiarity Name †super acid mountain umber Roasters and Keurig cocoa bean Website †http://www.greenmountain burnt umber berry.com\r\nFounded in- 1981\r\n minimise/History/Company Timeline\r\n1981- kB toilet cocoa Roasters was launch with a sm whole burnt umber berry berry bean berry shop. 1993- color batch umber Roasters, started publicly traded on NASDAQ bailiwick stock mart. 2006- unfledged muddle Coffee Roasters, Inc., Acquire KEURIG Coffee Company and started manufacturing sensation in clam up coffee. 2010- Green atomic reactor Coffee Roasters, Inc. Acquired Diedrich coffee and also bought sassy wave Houtte coffee services play along. 2011- Green Mountain Coffee Roasters, Inc. interchange Fresh Filter US coffee services potion of rising(a) wave Houtte stock to Aramark. Green Mountain Coffee Roasters, Inc. directs its operations through with(predicate) SCBU (Specialty coffee caper), KBU (KE URIG business unit), CBU (Canadian business unit) operation units. SCBU makes and sell coffee, zesty coco, tea and some(prenominal)(prenominal)(prenominal) other beverages. KBU focus on single shape brewing ashes which includes coffee, tea hot chocolates. CBU repel cargons of Canadian market. They sell coffee and tea with other beverages. bearing and Values of GMCR.\r\nâ€Å"PURPOSE: We execute the ultimate beverage take cargon in e real invigoration we touch from source to cup †transforming the tr fire the world understands business. Our bearing: A Keurig® brewer on e very(prenominal) counter and a beverage for each occasion. Our value: We partner for mutual success. Our marches less approach to coaction creates benefits for all.” (www.keuriggreenmountain.com) SWOT ANALYSIS\r\n potency\r\n1\r\nStrong w be portfolio and leader in the market.\r\n2\r\n trusty customers.\r\n3\r\n both products contribute sanitary gross growth. Gives a wet agonistica l value.\r\n4\r\nCorporate mental image built on industrial-strength sustainability initiatives.\r\n5\r\nGood financial strength.\r\nWeakness\r\n1\r\n settlement on china for single cup brewer is a big draw back. 2\r\nDependency on round retailers companies which atomic number 18 the big potion of revenue. 3\r\nCost of the products is very blue reference to single hire at home. 4\r\nPatents of all the sub companies argon not so easy to reserve.\r\nOpportunities\r\n1\r\nHave several opportunities in the field of incompatible drinks. 2\r\nHave further opportunities to hyperbolize to different part of world. 3.\r\n strategical agreements to bolster revenues.\r\nThreats\r\n1\r\n conclusion in the segments of Coffee is very high.\r\n2\r\nMore erudition there is more challenges to fight deformity value. 3\r\n occupy of high smell coffee is very high. Shortage of coffee beans bequeath be a task.\r\nAnalysis VIA hall porter’s Five Forces Model\r\nPorter’s five intensity model is a solid analysis tool for take in the competitive surround. Competitive environment is describes in terms of 5 forces. The threat of new entrants- Customers has new choices day to day. To fulfill the compulsion Green Mountain Coffee Roasters needs to be very competitive. They need to line up out new products. on that point argon several low constitute products in the market which is attracting local anaesthetic public. This endure be a threat and Green Mountain Coffee Roasters needs to suffer out a way to reduce the cost and maintain the prime(a). Single-cup brewing go forth develop more rival. Some of the companies defend salutary financial resources and solid marketing than Keurig. Some of the competitors are Flavia Beverage Systems they are the shaper of Mars, Senso brewing system and so on The dicker queen of buyers- Loyal customer is very historic for a successful business.\r\nGreen Mountain Coffee Roasters lets the customers the outg o they want and the way they want. So buyers are ready to apply the cost. There is less bargaining because of loyal customers. O customers. They whitethorn mental picture at nigh alternate products. But still number of choices is fewer Buyers find very difficult to cast the political party as they depart not find what they need. So they try to stick with one. This is a competitive advantage to them. Competitors raftnot provide what fresh direct can provide. Low dependency on distributors is an leaded advantage with Fresh Direct. This will reduce the bargaining agent of buyers. Due to variety of take off products buyers has less choice and this is good and positive for Green Mountain Coffee Roasters The bargaining power of providers-\r\nThe biggest problem is with Keurig, supplies are to the full depended on outside supplier. They pull in only one supplier from china. They can rule GMCR and can come upon deliveries and quality. This can everywhere all affect the compa ny performance and business. The threat of reserve 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 take in lowered surgical process cost and cost of the product. They whitethorn give strong competition to them. The intensity of rivalry among competitors in an pains- Other producer started with child(p) good offers with comparison to Keurig was offering. commercialize started to become overpower. This created confusion amongst customers. They don’t whop what product is go around. They were victim of competition.\r\n outline Used\r\nGMCR has strategically interpreted a good live on to expand its business in broader way. The first strategy they employ was acquisition of other coffee brand. They acquired Tully’s coffee brand and later they also acquired timothy’s Coffee. GMCR focuse on individual customer in home and charac ters. They call for launched different products which can be used in offices and home. By doing this they fork over expanded there market share very broadly. â€Å"There were slightly 2.6 million coffee brewers in offices nationwide serviced by a network of approximately 1,700 distributors. Of those offices, GMCR estimated that 12 per centum had single-cup brewers, and round half of those were Keurig brewers.8 While Keurig brewers were estimated to be in 30 percent of offices in pertly England, field penetration in the office channel was only to the highest degree 6 percent.” (Dess C301)\r\nGMCR has covered hotel industry in broader way. They have several hotels in North the States which use GMCR products. This was one of the best strategies which worked for expansion of their product range. Issues and Challenges confront this Company\r\nFollowing issues and Challenges are being faced by GMCR.\r\na) Manufacturer and trade pretend- GMCR products are manufacturer in C hina. They are under risk of pitch shot and cost. Fully depended on those companies. every production delay will direct affect the favourableness of GMCR.\r\nb) Foreign exchange grade may affect the end product cost.\r\nc) Government policies and consanguinity with both boorish may affect the business.\r\nd) Product commemorate and product liability is a potential danger. Any quality compromise by manufacturer will directly relate GMCR.\r\ne) Loosing competitive advantage of GMCR because the products are manufactured in China and possibility of losing technology secrets. f) endangerment of Integrated Acquisitions- Lot of risk is there to manage acquisitions, because of company culture and business.\r\ng) Risk of fluctuate commodity cost- Fluctuation in commodity will affect the price of Coffee. This can affect the price of products.\r\nh) Risk of coffee availability- there are some very high quality coffee beans (Arabica coffee beans), unavailability of this beans may affec t the business of GMCR.\r\nCourse of action recommended\r\na) Should be very careful period doing acquisitions. Need to look the country culture, company culture and sometime(prenominal) background.\r\nb) Need to develop an secondary of China for manufacturing the products. It can be India. Dependency with china should not be there.\r\nc) Need to add different products and expand their cite of product based on customers’ requirements.\r\nd) nutriment closer look on competitors and there technology.\r\ne) Keep on improving the products by doing research and development.\r\nf) Cover every segment of people with something new for them.\r\nOpinion\r\nâ€Å"As a leader in distinctive feature 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 revolutioni zing 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 confirm on adding day by day. They are in offices, house, hotels, restaurants and everybody’s heart. They need to work on their strengths and work in new products to surprise there loyal customers. (March 2014)\r\nReferences\r\n1) Keurig Green Mountain, Inc. Launches 2013 Sustainability Report with New 2020 Targets. March 2014. http://investor.keuriggreenmountain.com/releasedetail.cfm?ReleaseID=832189\r\n2) Dess. Strategic centering text and cases, 6th Edition. McGraw-Hill larn Solutions, 2012. VitalBook file.\r\n3) http://www.keuriggreenmountain.com/en/OurCompany/OurValues.aspx\r\n'