Term Paper

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 licenses the patents for creating single cup, or K-cup, coffee packages including Dunkin Donuts and Starbucks coffee (Dess, Lumpkin, Eisner, & McNamara, 2012).

SWOT Analysis

Strengths- Brand strength- Unique & large variety of products- Customer loyalty- Environmentally conscience, socially responsible- Innovative products and research- Strong growth potential- Product consistency| Weaknesses- Not a strong online presence- Supplier dependence- Concentrated customer base- Single product line- Returns- Keurig defects- Capacity constraints|

Opportunities- Expanding to new markets- Collaborations- Increased purchases - Keurig Acquisition- Expansion to hotels and businesses- Expand suppliers| Threats- Intense Competition- Changing consumer tastes- Large variety of products in the industry- Instability in coffee growing regions- Food and Safety Regulations- Patents expiration |

(Dess, Lumpkin, Eisner, & McNamara, 2012)

* Product differentiation; customer loyalty and brand identity

* High cost and risk

* Access to distribution and suppliers

* Product differentiation; customer loyalty and brand identity

* High cost and risk

* Access to distribution and suppliers

Potential Entrants

{Threat of new entrants :: LOW}

Potential Entrants

{Threat of new entrants :: LOW}

Porter’s Five Forces Model Analysis

Suppliers

{Bargaining power of suppliers :: MEDIUM}

Suppliers

{Bargaining power of suppliers :: MEDIUM}...