a. Case study organization
As its history, Keurig was established in 1990 by Dragone and Sylvan with the primary aim of revolutionizing the coffee industry. This would be through the provision of an easy, delicious and also a convenient way of enjoying a cup of coffee. In particular, Keurig had the belief that coffee was supposed to be served in its fresh state whether in the office or even at home. The company was considered as technological one. Essentially, it fused its technology and coffee design to enable it to attain its position as a market leader. (Dess, Lumpkin, Eisner, & McNamara, 2014) In this regard, the following article will present a discussion on the analysis of the case study on Keurig.
b. Mission state of Keurig
The mission statement of Keurig is ‘Brewing excellence one cup at a time’. The statement can be said to be effective because of the belief that the company has that nothing should, in fact, compromise the brewing experience of the firm. As a result, it has enabled Keurig to make tremendous strides in offering that experience which sufficiently rivals other coffee houses with the convenience, as well as, the speed that other producers cannot match. In addition, Keurig offers a broad selection of beverages that one can choose from consequently reaffirming the ideology that Keurig brews excellence each cup every time. ("Our Story | Keurig® UK", 2016)
c. SWOT analysis
d. Core competency of Keurig
Enhanced brewer technologies- this has enabled the brewing of better coffee in comparison to the competitors on top of increasing the productive levels.
New brands and categories of beverages- Keurig has a broad base of beverages and brands to its name consequently availing several products to choose from for the consumers.
Multiple distribution channels- this enables the company products to have a wide in several regions.
e. Strategic Business Unit Strategy of Keurig
The SBU strategy of Keurig is based on leadership and differentiation. Through this, the firm aims to cut a niche on its competitors through the expansion of the consumer choices. This combination of the strategic business unit strategy has enabled them enter into several business relationships and also offer formidable coffee brands e.g. Millstone, Starbucks, and Folgers in different markets.
f. Strategic issues facing Keurig
The first strategic issue facing the company is decreasing size of the market because of several factors amongst them the influx of new competitors and also the reduction of coffee consumption in the United States. The other significant issue is related to marketing, public relations (PR) and advertising. This is a segment that has not been properly conducted by the firm consequently culminating to low reach of the products.
g. Actions to address the above issues.
In order to mitigate against the reduction of coffee consumption in the US, the company should diversify into the production of healthy coffee products for that segment of consumers who are conscious about their health. Secondly, the company should invest more in research and development for the production of better quality coffee products above those of the competitors. Through this, customer loyalty would be sufficiently maintained. Lastly, the Keurig should conduct more expansion on a global basis to ensure that the reduction in the market size in its domestic market does not affect its operations.
h. Lessons learned from the case study
A significant lesson learned from the case study is that particular brewing techniques are fundamental for consumers in terms of earning their loyalty. Besides, innovation in the sector is critical for purposes of keeping up with the market and consumer demands.
References
Dess, G., Lumpkin, G., Eisner, A., & McNamara, G. (2014). Strategic Management: Text and Cases (7th ed., p. 813). New York: McGraw-Hill Education.
Our Story | Keurig® UK. (2016). Keurig. Retrieved 10 July 2016, from http://www.keurig.co.uk/our-story/
