Analysis Report - Case Study Example

With reference to the case, it is observed that GMCR has established a business venture with Starbucks for K-Cup portion package of their coffee for use in ‘Keurig Single cup brewing technology’. The key players or officers as mentioned in the case study are Howards Schultz, the President, Chief Executive Officer (CEO) and Chairman of Starbucks Corporation, Jeff Hansberry, President of Starbucks Global Consumer Products Group, the then CEO and President of GMCR Lawrence J. Blanford and Nigel Travis, the CEO of Dunkin Brands and President of Dunkin’ Donuts among others (Green Mountain Coffee Roasters, 2009).

The current CEO and President of GMCR is Brian Kelly. The company’s total sales for the year 2012 were USD 3,859,198 and the total profit was USD 1,269,399 (Yahoo! Inc., 2013). One of the major events in the GMCR’s history was in the year 2006 when GMCR made acquisition of Keurig, a maker of single-cup brewing machines. Moreover, in the year 2010, the company’s stock rose to an all time highest figure, placing it in the number one position in the Best Corporate Citizen criteria. In 2011, GMCR’s decision to enter into a venture with Starbucks was another important phase of the company (Green Mountain Coffee Roasters, 2009). . It has a wider reach to the customers created through joint venture with the top most coffee houses in the coffee industry.

It is the only manufacturer of single brewer machine (Wile, 2013). Weaknesses The main factor which may be weakness for the company is its financial performance is dependent primarily on the sales of K-Cups. Increased cost and decreased of raw materials may have keen impact on the future production of the company (Wile, 2013). Opportunities Owing to the reason that GMCR is the only manufacturer which provides single serve brewing machines and K-Cup, its brand name is getting promoted with joint ventures formed with well known companies such as Starbucks and Dunkin’ Donuts resulting in attraction of more companies to form a venture with them (Wile, 2013).

Threats With the new trend of globalization, the world has become a much smaller place and GMCR is facing significant competition from companies manufacturing similar products (Wile, 2013). SWOT Matrix Analysis Via Porter’s Five Forces Model Porter’s five force model is a business strategy tool used to analyze the value of an industrial structure, capturing the vital rudiments of competition. Threat of new entrants GMCR is the only company which provides a wide selection of coffee products, the number of competitors competing for the same section of customers and resources is limited.

Thus, threat of new entry can be deemed to be low as the company possesses exclusive offerings which can be quite hard for new competitors to imitate (Vitalsource.com, 2013). Bargaining power of buyers GMCR, being the only manufacturer of K-Cup, has a large number of buyers resulting in quite limited bargaining influence by the customers having a positive impact on the company (Vitalsource.com, 2013).