Green Mountain Coffee Essay

Green Mountain cocoa Roasters (GMCR) started as a small caf in Waitsfield, Vermont in the year of 1981. It was in 1993 that the union went public and acquired the early material body of Keurig Incorporated Inc, and then completed the acquisition in 2006. (Unknown.( 2004). Gmcr.Retrieved from http//www.gmcr.com/about-GMCR.html) Once these ii companies combined it made the way we drink beverages different than ever earlier in both the home and office. According to GMCRs website Today, GMCR is recognized as a leader in specialty burnt umber and hot chocolate makers, and acknowledge for its award-winning coffees, innovative brewing technology, and environmentally and socially responsible melodic phrase practices. ((Unknown.( 2004). Gmcr.Retrieved from http//www.gmcr.com/about-GMCR.html)GMCR has three disdain units that they operate with today. The first being specialty coffee which includes Green Mountain Coffee, Tullys Coffee, Diedrich Coffee, and Coffee People. The 2nd unit i s the Keurig business unit, which created the signal form brewing system. The 3rd and final is the GMCR Canada. The GMCR Canada is owns all gross sales for the company and includes the Van Houtte business as well as herds grasss World Coffee brand. ((Unknown.( 2004). Gmcr.Retrieved from http//www.gmcr.com/about-GMCR.html)The current CEO is Brian Kelley who joined GMCR in 2012. Before GMCR Brian Kelley was Coca-Colas Chief Product Supply Officer , and chairperson and CEO of SIRVA, Inc. ((Unknown.( 2004). Gmcr.Retrieved from http//www.gmcr.com/about-GMCR.html) as well as former(a) companies such as Ford Motor Company, GE, and Proctor and Gamble.In 2011 net sales were 2,650.9 unmatched thousand million which was up 95% over fiscal 2010. (http//investor.gmcr.com/releasedetail.cfm?ReleaseID=622448) The acquisition of Van Houtte which took impersonate in December, 2010 in extendition to the partnership with Starbucks and Dunkin Donuts with the K-cups option of their coffee has he lped add over 321.4 million to the net sales in 2011. (http//investor.gmce.com/releasedetail.cfm?ReleaseID=622448) GMCR has bring inn accelerated emersion over the last couple of years due to its Keurig single cup brewing system and the K-cups that go along with it. Below is the breakout for the 2011 monetary Financial Review provided by (http//investor.gmcr.com/releasedetail.cfm?ReleaseID=622448). 2011 2010 $ IncreaseSWOT ANALYSISStrengthsWeaknessS1-Strong character with its customersW1- Keurig single-cup brewers all made by one manufacture S2-AcquisitionsW2-Large % sales from one area of the business (K-cups & brewers) S3-Marketing W3-Forecasting due to such overnight espouseerOpportunitiesThreatsO1- Increase marketing to the age group of 40 and older T1- hazard of patents expiring allowing other competitors into the market O2-Increase marketing in the Supermarket locationsT2- Keurig single-cup brewers all made by one manufacture O3- Introduce other manufacturesT3-Product r ecalls & product liabilityT4- Coffee availabilityANALYSIS VIA PORTERS FIVE FORCES MODELThe threat of new entrantsThe bargaining power of buyersThe bargaining power of suppliers The competition of this typesetters case of product & function because of cost overhead would need to come from an already known company or a company that becomes achievementful afterward the patients expire that GMCR hold. Strong threatOver time as patients expire buyers will welcome bargaining power. ThreatGMCR has one manufacuting for the K-cups and brewing systems which resides in China. Weakness The threat of switch over product and servicesThe intensity of rivalry among competitors in an industry The threat of electric switch is high. ThreatAlthough there are other companies that try to offer the like service, GMCR is at the top of the coffee industry for this type of service. StrengthSTRATEGY employGMCR is using a differentiation strategy by offering a different way for the consumer to enjoy s pecialized coffees, afternoon teas, vitriolic chocolate, and other hot beverages in their own homes, workplaces, and hotels at an overall lower cost than coffee houses. They are able to do this by taking the lead in the market due to their strengths in product armment, licensing agreements with partners, and on-going flourishing acquisitions. GMCR growth through with(predicate) their acquisition strategy and their licensing agreements have been the biggest contributors to their growth. In 1998 when Keurig launched its first single- cup brewer for the office environment GMCR was there to partner with. (Dess,G, Lumpkin, G. & Eisner, A.(2012). strategical Management (6e). capital of Massachusetts McGraw-Hill Irwin.)From that point on it just comprehendd whether it be the agreement with Starbucks in 2011 or the agreement with Dunkin Donuts in that same year to sell K-cups with both Starbucks and Dunkin Donuts coffee they continue to thrive in the market. If we look at Porters gen eric strategies that our text talks of we can strike the following. Differentiation The product and service that GMCR brings to the market is the best value for expenditure and quality. Focus strategy The acquisitions and licensing agreements that GMCR has been able to focus on continues to allow success to the buyer markets and geographic markets. Overall cost leadership GMCR is able to limit cost low because of the amount of product they supply to the customer without untold competition.THE ISSUES AND CHALLENGES FACING THIS COMPANYI think for now GMCR will continue to have competitive advantage. GMCR should be able to accomplish this by keep to offer their K-cups and brewing systems at the same competitive price to the same type of customer. Although patents are ready to expire and more of the product and service will be able to join the market, I feel that GMCR with their olden record of new product innovation will continue to sieve in the coffee market and lead the way for competitors to follow.COURSE OF effect RECOMMENDEDIt ascertainms to be that because of the success of Keurig & K-cups that GMCR has put all their eggs in one basket without much focus on the rest of their products. We can see this in both the 2010 and 2011 earnings (http//investor.gmcr.com/releasedetail.cfm?ReleaseID=622448). With patents becoming expired in the underweight future by recommendation would be that GMCR starts to focus on the other products that they sell or that they start to work on the next long product for the coffee industry. My fear is once patents expire that you may see some of the larger distributers try to come into the Market and possible succeed if there able to produce the same product at a lower cost.OPINIONMy opinion of the case field of view is first I had no idea that GMCR was such a large company. I entert drink coffee but am a tea drinker and I guess I just didnt knuckle under much attention to the marketing and advertising . Im sure eno ugh they would like to hear this feedback, it may give them a clue as to where the marketing needs to go during the next phase. With that being said this company to me shows the true meaning of great business leadership and a successful supply chain and focus strategy. During the research I even plant a joint venture with 3M the company I work with. It seems that 3M helped GMCR develop a coffee filter. This was a very enjoyable case study and it showed a great example of how to be successful in my opinion.ReferencesDess, G., Lumpkin, G. & Eisner, A. (2012). Strategic Management (6e). Boston McGraw-Hill Irwin.Green mountain coffee roasters, inc.. (09/1). Retrieved from http//investor.gmcr.com/releasedetail.cfm?ReleaseID=622448Unknown. (2004). Gmcr. Retrieved from http//www.gmcr.com/about-GMCR.html