Case Study #8—Keurig Read the Keurig case study: This case describes a new produ

Question

Case Study #8—Keurig

Read the Keurig case study:

This case describes a new product success story, set in a competitive business climate. Keurig was one of the companies to commercialize an innovative technology that allowed people to brew one cup of coffee at a time. Keurig was established in 1992. The word, “Keurig,” means excellence, and it has been the guiding principle behind its products and services. Keurig patented its single serve brewing system and first entered the office coffee service, or Away From Home (AFH), marketplace in 1998. In 2003, Keurig became one of the first to enter the At Home (AH) marketplace with a single serve brewing system designed for use in the home.

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.

An 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.       

Assess 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. Analyze 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

Keurig's Business Level Strategy

Keurig's Business level strategy had been successful. However, the concern linked with patents and challenge to overcome environmental impact needs to be addressed. This will help Keurig capture market without any hindrance.

Keurig's strategy against competitors

Keurig has consistently launched new product as well as worked upon new market development. This has helped Keurig to be ahead of competition. In addition, Keurig has first mover advantage. Since, it is the first company to launch single serve brewing system.

Keurig's external environment

- First entrant in single serve brewing industry for office and household application

- 25+ years of experience

- More than 25% market share in coffee maker

Keurig's internal environment

- Market leader

- Competition driven workforce

SWOT analysis

Strength

- First entry in single serve brewing industry

- 25% coffee makers sold in U.S were Keurig branded

Weakness

- Increasing competition

Opportunities

- Foreign market expansion

- New product development

Threat

- Patent certification to due sooner

- Environmental impact

Keurig's international strategy

- Foreign market entry

- Existing product for new market

- New product development for foreign market

Challenges for Keurig

- environmental impact

- increasing competition

Risks

- Changing customer demand

- Increasing awareness about environment

Recommendation

- Continuous upgradation in existing products

- Launch of new products

- Investing in Research and Development, and marketing.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.