Case Study #8—Keurig
Read the case study located in the section titledCase Studies
in your textbook and prepare a 3- to4-page report in a Microsoft Word document concerning the following situation:
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 toenter 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.
A review and 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’sstrong performance and top market position.
- Identify 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. Outline 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?
Support your responses with examples.
Cite any sources in APA format.
Submission Details
Name your document SU_MGT4070_W2_A2_LastName_FirstInitial.doc.
Submit your document to the
W2 Assignment 2 Dropbox
by
Tuesday, December 20, 2016.
Assignment 2 Grading Criteria
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Maximum Points
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Evaluated Keurig’s business-level strategy, including whether the strategy has been successful.
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10
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Described how Keurig’s strategy stands up against competitive rivalry in the industry.
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10
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Outlined the key factors in the SWOT analysis, after reviewing and interpreting the important elements of Keurig’s external and internal environments.
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5
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Evaluated Keurig’s s international strategy and its use of alliances to achieve company objectives.
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5
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Made recommendations to support Keurig’s growth and profitability objectives, after weighing the challenges confronting Keurig and interpreting what the greatest risks for Keurig are.
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10
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Wrote in a clear, concise, and organized manner using appropriate format (i.e., APA). Utilized the appropriate type and number of scholarly sources. Demonstrated ethical scholarship in accurate representation and attribution of sources (i.e., APA). Displayed accurate spelling, grammar, and punctuation.
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10
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Total:
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50
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