Tuesday, August 13, 2019

Green Mountain Coffee Roasters and Keurig Coffee Case Study - 2

Green Mountain Coffee Roasters and Keurig Coffee - Case Study Example Howard Schultz is the President, Chief Executive Officer (CEO) and Chairmen of Starbucks Corporation, whereas Jeff Hansberry is the President of Starbucks Global Consumer Products Group. The current CEO of GMCR is Larry Blanford. The net sales of GMCR have been depicted as 3,859,198 US Dollars in 2012, whereas profit of the company was 1,269,399 US Dollars in the year 2012. In accordance with GMCR, in 1983, it had kept waste reduction along with responsible energy as top priority (GMCR, 2013). In the year 1989, GMCR engaged in the development of earth-friendly coffee fitters. In the year 2010, GMCR and Starbucks build up a strategic relationship for marketing and selling of K-cup portion cup. The company has engaged in K-cup portion cup business in the GMCR’s Keurig single-cup brewing system (Green Mountain Coffee Roasters, 2012). Dunkin’s K-cup portion pack can be regarded as a key strength of GMCR. Dunkin’ Donuts is primarily famous for providing quality coffee. Alliance between these two companies has strengthened the position of GMCR by increasing the customers’ preference for Keurig brewer. Another vital strength of the company is Tully’s acquisition in the year 2009 that provided it leadership dominancy in specialty coffee. One of the key weaknesses is recognized to be GMCR’s dependence upon a single manufacturer i.e. China. Moreover, the company also greatly depends upon few retailers for revenue. It’s entry within the functional drink market in the United States (US) can be considered as its major opportunity. GMCR’s product Keurig is another pertinent opportunity for its sustainability in the competitive market. Furthermore, GMCR’s ‘Hotel in-room’ brewer can also be determined as an opportunity for the company. Increase in demand fo r Arabica-coffee, which is of good quality might stand as a threat for the company (Jang et al., 2013). GMCR has faced challenges

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