Case Study Report :: Green Mountain Coffee & Keurig Coffee Essay

1357 Words Jul 15th, 2012 6 Pages
Company Information
Name :: Green Mountain Coffee Roasters, Keurig Coffee
Website :: www.greenmountaincoffee.com, www.gmcr.com, www.keurig.com
Industry :: Processed & Packaged Goods- Coffee Makers
Background & History
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
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Issues & Challenges Facing Company
Green Mountain Coffee Roasters has a current advantage over coffee competition; the life cycle of the company is likely long since there is a loyal following and the product is always in need. When the patents for the Keurig machine expire in coming years, the competition will likely become more intense (Dess, Lumpkin, Eisner, & McNamara, 2012). To continue growth, the company should maintain research of new and innovative advances in the coffee makers as well as continue acquisitions and partnerships with leading brands. It will be important for GMCR to keep abreast of the latest technologies and advances that can improve their products or services. Currently GMCR is having issues with patents, faulty machines, and the competition of popular coffee makers moving into the single serve market (Bright, 2012). The Keurig machines have a history of having faulty parts or becoming faulty over time, and while the company replaces or fixes the faulty machines- the problems discourage many from either purchasing or continuing use of the brand (Stock Picks, 2012).
Recommended Course of Action
The course of action GMCR should take is as follows: * Continue expanding the brand and acquiring specialty coffees to broaden their portfolio and increase customer

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