Green Mountain Coffee Case Study
Company Name: Green Mountain Coffee
Industry: Coffee & Tea Manufacturing
Company website: www.greenmountaincoffee.com
Green Mountain Coffee Roasters (GMCR) started out in 1981 as a small café in Waitsfield, Vermont. In 1993 the company went public, that same year GMCR make an investment in Keurig. Then in 2006 GMCR acquired the remainder of Keurig and the combined company “is changing the way North America prepares its beverages both at home and in the workplace with its Keurig Single Cup Brewing System”. (www.gmcr.com) GMCR produces specialty coffee, specialty, tea, and coffee makers.
* Brand strength
* Large variety of products
* Strong growth potential
* Customer loyalty
* No strong online presence
* Supplier dependence
* Single product line
* Keurig defects
* Expand to new markets
* Expand to businesses
* Expand suppliers
* High competition
* Variety of other products in the industry is large
* Patents expiration
ANALYSIS VIA PORTER’S FIVE FORCES MODEL
Threat of New Entrants
Patents will limit new competition, these existing patents cover vital technologies that make it difficult for new competitors, and the best methods are already patented. These patents positively affect Green Mountain Coffee Roasters. Customers are loyal to existing brands; it takes a lot of time and money to build a brand, so when a company spends that resource in building a brand then they have fewer resources to compete in the marketplace. This is a positive for Green Market Coffee Roasters.
Bargaining Power of Buyers
Product is very important to the customer, when customers like or cherish their products then they are more willing to pay more for that one product. This positively affects Green Mountain Coffee Roasters. There is also a large number of buyers, when there is a...