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keurig dr pepper swot analysis

Category: Business Paper Type: Homework Reference: APA Words: 1500

Introduction:

Keurig is going to introduce the cold brewer for challenging the Soda Stream. New Keurig Kold brewer allows the consumers to brew the cold beverages like iced teas and sodas at home. This new product of Kurig will be available in all the stores. It is the big challenge for the Sodastraem International ltd. beside this Keurig trying to make efforts to renew their growth. Although it’s not difficult for the company to grow their growth, but company have some of the issues. Their fore for attracting more customers company has to focus on their customers. Keurig Green Mountain Inc is a strong company, its not easy for SodaStraem to compete this. However, for this it is necessary that the company have to make some of the different strategies. Keurig have to make some of the innovative strategies and have to introduce something different.

Problem statement

There are many problems faced by company. First is that by working on cold products of drink, it faced temperature problem. Another problem associated with these products was its taste. It was problematic for company to provide drinks to customers on suitable temperature. There was less variety in products and customers want variety. Problem associate with taste was also important. It is important for company to establish its position in the market. It is argued by soda stream that this machine is not rival for their company. This machine will allow customers to make coffee by their own choice. This idea does not remain competitive as compared to other beverages. Company used strategy to attract customers by allowing them to make coffee by pushing a single button of machine. Another problem is with its cost. It is available to customer is high prices as compared to soda stream

Keurig Green Mountain was looking towards great investment in the form of establishing a machine that can provide customers opportunity to brew their coffees. Customer’s want drinks on a temperature that they can drink. This problem was faced by company. Another important strategic problem was that it was looking towards soda stream. It was planning to beat soda stream. On the other hand, it was believed by Soda Stream that it has no danger with that machine.

There exist huge differences in prices of both products. Expected price of Kold is in-between $299 to $369. On the other hand, competitors are providing quality drink in lower price as compared to Keurig. It has investment from Dr Pepper and coca cola for launching this machine. Due to this investment from partners, cost of machine has increased. On the other hand, cost of pods is also another problem. Company should consider these problems for increasing its sales in the market. It requires availability of pods for making coffee. Investment by Coca Cola is another problem because it did not have knowledge of this product. It did not test this product in the market before. It did not have knowledge of demand of this product in the market.

Company should investigate demand of home based product. It should also analyze problem o0f temperature that will make this product of cold coffee less competitive in the market. This technology demand investigation of market. Analysis of other companies should be made as well. What strategies will be used in case of introduction of same product by other competitor in the market?

SWOT Analysis:

Strengths:

Keurig Green Mountain has the different strengths that are planning the important role to improve the profit rate. All the products that Keurig Green Mountain provides are high quality and are available every time when you want. There are the variety of the options for the customers, company offer about 290 individual varieties like tea, coffee, flavored, and many of the other things with the different flavors, beside this company also using the innovative technology for fulfilling demands of customers. Beverages are prepared before the mint. these are the great or the important strengths of company that are playing the important role.

Weaknesses:

With these strengths company have some of the weaknesses like criticism from SEC, dependence on bean and machine manufacturers and lost patents in 2012. For arrtacting the more customers or to competing their competitors Keurig Green Mountain have to focus on their weakness and make efforts to mitigate them.

Opportunities:

Company also have some of the opportunities and by availing them company can easily compete their competitors and can gain the more market shares. Company has the opportunity to expand their business on international level, with this company also can expand their product line and can offer the snacks. Company can bring innovation in both hot or the cold brewing system. Keurig Green Mountain can expand workplace, food services, hospitality locations and higher education.

Threats:

Keurig Green Mountain also have some of the threats like during the manufacturing of the food products company has to concern with safety and health of the chemical in brewing machine. With this company may make the K-cup and single brewing machine. Competition especially in coffee is very intense; Starbuck is a big threat for the company that is making its own home brewing machine. For competing their competitors company, have to mitigate these threats.

Porters Five Forces Analysis:

Suppliers Powers:

Suppliers power of Company is high, because both distribution and supply one entity in china There is high competition among the suppliers, Keurig Green Mountain using the different distribution channels for fulfilling the demands of customers on time. There are many of the specialties of the coffees that can be used with this there are large number of the substitute of inputs.

Buyers Power:

Buyers bargaining power of Keurig Green Mountain is medium. Company has providing the different options to the customers but have the lower command power in term of pricing. Patent expiration allows the competitors of the company to introduce new or innovative products.

Threats of the New Entrants:

There are low entry barriers for the existing competitors to inter in markets or to exist, but for the new entrants there are the high barriers. It is not so easy for them to inter in market for competing this company.

Competitive Rivalry:

In 2012 expiration of the K-cup, patents make it easy for the competitors to grow their markets for competing Keurig Green Mountain. Therefore to exist in this market company has to make some of the innovative strategies. Competitive Rivalry for this company is high.

Threats of the new Substitutes:

Threats of the new substitutes are medium, it is the high competitive market but K-cup was the first product of its kind that holds the patents.

Assignment on Keurig Introduces the Cold brewer in Challenge to Soda Stream By ABC Date Introduction: Keurig is going to introduce the cold brewer for challenging the Soda Stream. New Keurig Kold brewer allows the consumers to brew the cold beverages like iced teas and sodas at home. This new product of Kurig will be available in all the stores. It is the big challenge for the Sodastraem International ltd. beside this Keurig trying to make efforts to renew their growth. Although it’s not difficult for the company to grow their growth, but company have some of the issues. Their fore for attracting more customers company has to focus on their customers. Keurig Green Mountain Inc is a strong company, its not easy for SodaStraem to compete this. However, for this it is necessary that the company have to make some of the different strategies. Keurig have to make some of the innovative strategies and have to introduce something different. Problem statement There are many problems faced by company. First is that by working on cold products of drink, it faced temperature problem. Another problem associated with these products was its taste. It was problematic for company to provide drinks to customers on suitable temperature. There was less variety in products and customers want variety. Problem associate with taste was also important. It is important for company to establish its position in the market. It is argued by soda stream that this machine is not rival for their company. This machine will allow customers to make coffee by their own choice. This idea does not remain competitive as compared to other beverages. Company used strategy to attract customers by allowing them to make coffee by pushing a single button of machine. Another problem is with its cost. It is available to customer is high prices as compared to soda stream Keurig Green Mountain was looking towards great investment in the form of establishing a machine that can provide customers opportunity to brew their coffees. Customer’s want drinks on a temperature that they can drink. This problem was faced by company. Another important strategic problem was that it was looking towards soda stream. It was planning to beat soda stream. On the other hand, it was believed by Soda Stream that it has no danger with that machine. There exist huge differences in prices of both products. Expected price of Kold is in-between $299 to $369. On the other hand, competitors are providing quality drink in lower price as compared to Keurig. It has investment from Dr Pepper and coca cola for launching this machine. Due to this investment from partners, cost of machine has increased. On the other hand, cost of pods is also another problem. Company should consider these problems for increasing its sales in the market. It requires availability of pods for making coffee. Investment by Coca Cola is another problem because it did not have knowledge of this product. It did not test this product in the market before. It did not have knowledge of demand of this product in the market. Company should investigate demand of home based product. It should also analyze problem o0f temperature that will make this product of cold coffee less competitive in the market. This technology demand investigation of market. Analysis of other companies should be made as well. What strategies will be used in case of introduction of same product by other competitor in the market? SWOT Analysis: Strengths: Keurig Green Mountain has the different strengths that are planning the important role to improve the profit rate. All the products that Keurig Green Mountain provides are high quality and are available every time when you want. There are the variety of the options for the customers, company offer about 290 individual varieties like tea, coffee, flavored, and many of the other things with the different flavors, beside this company also using the innovative technology for fulfilling demands of customers. Beverages are prepared before the mint. these are the great or the important strengths of company that are playing the important role. Weaknesses: With these strengths company have some of the weaknesses like criticism from SEC, dependence on bean and machine manufacturers and lost patents in 2012. For arrtacting the more customers or to competing their competitors Keurig Green Mountain have to focus on their weakness and make efforts to mitigate them. Opportunities: Company also have some of the opportunities and by availing them company can easily compete their competitors and can gain the more market shares. Company has the opportunity to expand their business on international level, with this company also can expand their product line and can offer the snacks. Company can bring innovation in both hot or the cold brewing system. Keurig Green Mountain can expand workplace, food services, hospitality locations and higher education. Threats: Keurig Green Mountain also have some of the threats like during the manufacturing of the food products company has to concern with safety and health of the chemical in brewing machine. With this company may make the K-cup and single brewing machine. Competition especially in coffee is very intense; Starbuck is a big threat for the company that is making its own home brewing machine. For competing their competitors company, have to mitigate these threats. Porters Five Forces Analysis: Suppliers Powers: Suppliers power of Company is high, because both distribution and supply one entity in china There is high competition among the suppliers, Keurig Green Mountain using the different distribution channels for fulfilling the demands of customers on time. There are many of the specialties of the coffees that can be used with this there are large number of the substitute of inputs. Buyers Power: Buyers bargaining power of Keurig Green Mountain is medium. Company has providing the different options to the customers but have the lower command power in term of pricing. Patent expiration allows the competitors of the company to introduce new or innovative products. Threats of the New Entrants: There are low entry barriers for the existing competitors to inter in markets or to exist, but for the new entrants there are the high barriers. It is not so easy for them to inter in market for competing this company. Competitive Rivalry: In 2012 expiration of the K-cup, patents make it easy for the competitors to grow their markets for competing Keurig Green Mountain. Therefore to exist in this market company has to make some of the innovative strategies. Competitive Rivalry for this company is high. Threats of the new Substitutes: Threats of the new substitutes are medium, it is the high competitive market but K-cup was the first product of its kind that holds the patents. Recommendations It is recommended that company should focus on quality and taste of its products. It should try its best to reduce its cost. Other competitors are providing same products in less cost. It will be dangerous for company to compete in the market with high cost. It should try to add flavors in its products. It should analyze demand of product. Investment with partners should be made by analyzing their competitiveness in the market. It is expected by company that its product will gain thousands of sales in its first year. It should use strategic tools for assessing its position in the market. It should make its strengths power of its company. Weaknesses include its cost. This cost is also due to purchasing of pods and investment with DR pepper. It should also look at other side of this investment. Yes, no doubt, decision of this investment is good but it should also focus on safety issues of these brewing machines. It should also focus on increasing competition of market. It should also focus on international markets as well. It should also it should use innovative technologies. It should also focus on partnership with other investors. It should also expand to other manufacturers. Conclusion: Keurig Green Mountain has launched its new machine in the market with partnership of Coca Cola. Coca Cola make 15% investment in the shares of company. Due to increased competition in the market, it is concluded that it should focus of variety and quality. It is concluded that cost of machine can be weak point for the company. It should analyze conditions in the market. It can beat market by introducing diversity in these products. It should minimize price of its coffee. Cost of pods is also included in making this coffee. This investment in introduction of Kold machine will be beneficial for company but should also look towards other strategies for increasing its market share.

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