By 2010, 25 percent of all coffee makers sold in the United States were Keurig b
ID: 424003 • Letter: B
Question
By 2010, 25 percent of all coffee makers sold in the United States were Keurig branded machines. Keurig is regarded as a market leader. However, Keurig faces two major challenges. First, some patents of Keurig’s key technologies are approaching the expiration date. Without the protection of the patents, Keurig can lose revenue from the K-Cup portion packs, thus reducing GMCR’s coffee sales. Keurig can also lose royalties from other roaster coffee sales using Keurig’s technology. The second challenge is the perceived environmental impact of the K-Cup portion packs. It will need to be addressed to prevent erosion of Keurig’s position in the marketplace.
A review and evaluation of Keurig’s business-level strategy, competitive rivalry, and SWOT analysis will aid in the discussion and weighing of strategic options available to Keurig. The results of the analysis can then be used to establish and support a strong set of recommendations seeking to ensure a continuation of Keurig’s strong performance and top market position.
Identify Keurig’s business-level strategy. Has the company’s business-level strategy been successful?
How does Keurig’s strategy stand up against competitive rivalry in the industry?
Review the important elements of Keurig’s external and internal environments. Outline key factors in the SWOT analysis.
Evaluate Keurig’s s international strategy and its use of alliances to achieve company objectives.
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?
Explanation / Answer
1. Focus differentiation is the Keurig’s business-level strategy. Business level strategy:
Mainly, who- Coffee devotees
What requirements, wishes, and wants will we make happy? Quick, high superiority coffee
Why do we desire to make happy them? Increase attention for single cup brewing
And the how will we make happy customers’ requirements?
Yes, the company’s business-level strategy been victorious because our Business level approach for Keurig engages developing and supervision advertising programs to sell as numerous brewers as possible to produce in progress demand for K-Cups. Moreover, we are focused on partnering through other gourmet coffee roasters as well as tea packers through strong countrywide/regional brands to produce additional K-Cup goods that will produce further payment income.
2. Keurig’s approach stand up beside competitive rivalry in the business by expands globally using a business level transnational approach. Current in the business, the top bazaar players have started themselves in the United States and also, in other different parts of the world like as Europe as well as Asia. In direct to be a serious opponent; for example; Keurig must believe the benefits to expanding globally, not simply for sales other than for manufacturing reasons as well. That being said, it is tremendously significant that companies pay close concentration to other cultures as well as certain traits that affect each society differently. Particularly when you are attempting towards entering fairly of a segmented bazaar.
3. The significant elements of Keurig’s external as well as internal environments
Strengths
The two-cup way will not pressurize the KADs as well as the OCS market.
Particularly, raise pricing of Keurig-Cup managed.
Increases the options of managers' contribution in in-office encouragements of the Keurig at-home arrangement due to the separation would stop the theft of K-Cups provided for workplace consumption.
Weaknesses
Buyer puzzlement should be reduced because similarities among cups can reason confusion among the brewer. (theconversation, 2014)
Increased record for roasters.
Retail divisions have a lack of expression due towards which Keurig-Cups are not obtainable for purchasers in retail stores.
Keurig has a lack of possessions which influence the sale of brewer as well as Keurig cup in retail outlets.
Opportunities
Continued development in OCS market as well as extra available resources for increasing distribution of at-home bazaar into the retail division.
Threats
Brewer pricing does not reduce and due to this cause competition starts through lower pricing approach, and Keurig suffers big losses in future. (mindtools, 2014)
Breakeven direct is not met for a reason that of extra brewer high pricing as well as making Keurig relies on Keurig-Cup sales to create up for losses from brewer auctions and this circumstance for brewer towards become the loss head.
The probability of frightening the OCS market, and also, which is Keurig's money cow.
4. Keurig’s s international approach and its use of alliances to get business objectives.
Keurig deploys possessions as well as capabilities in the procurement, manufacture, and allocation of goods and facilities in extra than two countries consequently it is an international enterprise. For example; Global, Keurig sells the same goods in both domestic as well as foreign markets.
Has a comparatively large domestic market as well as strong status and brand name
tend towards use differentiation as preferred commerce strategy
weakness = restricted local sensitivity
Thus we recommend adding localization aspects into their global approach by:
partnering with local coffee brands
finally, structure a European K-Cup industrialized plant
Yes, its use of alliances to get corporation objectives because Our Company’s aim is to be a leader in the branch of learning coffee industry with selling high-quality coffee as well as ground-breaking coffee brewing systems that every
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