Keurig - Situational Analysis - Assignment Example

Despite facing competition from its primary competitors who include Flavia, Tassimo, and Senseo, Keurig continues to gain a sizeable share of the market and has expanded its dominant position in single-cup brewing. Keurig’s profit compared to its competitors has registered a steady increase over the years and as it continues expanding its market, net sales are expected to grow more than 40% shortly.

2) Value chain.
Green mountain coffee has been recognized as a leader in the coffee industry because of its innovative brewing technology, award-winning coffees, and socially responsible business practices. Kent believes that coffee should be served fresh, like gourmet coffee, despite an individual’s location. This has steered for Keurig to provide coffee lovers with the perfect solution. The brand has combined its unique packs with its modern technology to consistently deliver perfect cups to clients (Seong-Jong 503). This has made Keurig the leading single cup-brewing brand in North America and this brand has continued to provide its customers with the perfect cup daily. Keurig has adopted the Green Mountains policy of doing business in a way that balances the economic goals with environmental and social impacts on the local and international communities. Its competitors have not adopted such a business model but only focused on economic goals.

3) Differential advantage/resource analysis:
Keurig has ensured that it updates its technology to keep pace with its primary and secondary competitors. This gives it an upper hand in devising new products that can able to meet the consumer’s current demands. This also ensures that Keurig keeps pace with modern changes and customized demands. Since Keurig is the leading single-cup brewer, it has the advantage of dictating the market trends because it has already acquired a sizeable portion of the market (Seong-Jong 496). This ensures the brand can manage the market situation as well as its production process with much ease compared to its competitors. Keurig has strong customer loyalty because of high consumer satisfaction, improving its ability to produce coffee because it already understands its consumer’s demands. In addition, acquiring a large portion of the market makes it easier for the brand to finance itself in terms of expansion and innovation to ensure it remains relevant in the market.

4) Expected future strategies.
Since Keurig uses a business model that balances economic goals with environmental and social impacts on the community, this brand should incorporate other strategies that ensure it reaches out to the community. This can include corporate social responsibility or charity work. This way, it can reach a wider population and increase its market share. As the brand continues acquiring a big market portion, it should come up with reward programs for its loyal customers, and offer them special discounts on various seasons. This would enable it to establish a firmer position as the market leader and improve customer relations. Lastly, as demand for coffee continues to increase across the world, Keurig should develop innovation centers that can employ professionals who can assist in generating new ideas for the market. This should include the use of the latest technologies and the production of high-quality coffee. Though the innovation centers may seem costly for Keurig, they would eventually bear fruit in the long run. Read More