Case Study Analysis – Keurig

Keurig is one of the leading companies in the coffee industry. The firm was founded in 1992, and it innovated the and commercialized technology whereby individuals were capable of allowing people brew a cup of coffee at a time. The company pioneered in revolutionizing the coffee industry through making sure that there was increased convenience, ease, and the coffee was enjoyable. The company has shown a lot of success in the past especially through the application of technology and the way it is structured. The case has highlighted on the progress the company and measures that it has undertaken do become a strong player in the market. The business-level strategy that is applied by the company has mainly focused on the differentiation. Differentiation entails the modification of the products or even packaging to ensure that they suit a wide range of the customers in the market. The applicability of differentiation as a business-level strategy appears to have made the company to become successful than it was before starting to apply the technology. The success of the business-level strategy in the company can greatly be attributed to the willingness of the company to implement the strategy. The other factor that can be associated with the success of the business-level strategy in the company it is its achievability (Kotler, 2015). Differentiation is a strategy the company has been able to achieve over the year thus contributing to its success in the market. Its applicability has also made sure that the company has expanded to different markets because there is something for everyone in the market.

The goal is aimed at ensuring that the different needs of all the consumers have been taken care of and the fact that the products being brought in the market address specific needs of the consumers.
The strategy used by the Keurig has stood up against the competition that the company has been facing from other competitors in the market. The company has continued to excel in the industry through innovation, assets, and the good reputation that it has kept over the years. The company has also perfected in CSR programs as opposed to most of its rivals thus giving the firm a better position to lead in the market. Technological advancements have given the company a competitive edge over their rivals that placing it in a better position in the market. The increase in efficiency in the packaging and roasting of the coffee is one of the advances that the company has made and have continued to propel the company for success in the near future (Jobber, 2012).
The external and the internal environment by the Keurig have played a crucial role in the success of the company. Some of the elements that are present in the internal environment of the company are the quality of the products, patented technology, brand awareness, consumer brand loyalty, and longer shelf life of the product which have acted as an area of strength for the company to succeed. The internal environment of the company has also had a challenge such as the limited strategic alliances, past failures in the strategic decisions, and little brand presence in some of the regions. Some of the elements that are of great importance in the external environment of the company are the fact that the consumers have continued to consider the quality of the products as a priority. Additionally, the market for the product is huge and untapped taking into account the increasing growth in the industry. Further, the current trend reveals that the coffee drinkers are on the rise despite the competition from other forms of beverages as well as companies (Palmer, 2012).
There are important elements in the SWOT analysis of the firm. The strengths that can be associated with the company is the firm’s ability to serve as the single-serve brewing coffee. The brand is solid and popular thus making it gain a competitive advantage. The other strength is the patented technology belonging to the company and presence of streamlined distribution channels of the products (Kotler, 2015).
The weaknesses that have been linked to the company is the expenses involved in the operationalization of the firm. The other weakness is the fact that the company is not spending enough on advertising which is not healthy for the company. The company does not have a system in place to accurately predict the demand.
Opportunities that are in the market for the firm is that there is increasing demand in the consumers. The company also has the opportunity to innovate and advance its technology through coming up with new machines for processing and new ways of promoting the product. There is also an opportunity for expansion to other areas (Palmer, 2012).
Threats that are available are a current decline that has been experienced in the American market. There is also an increase in the level of competition in the market since the barriers to entry in that market are relatively low. The volatility of the prices is high which is a threat to the firm (Kotler, 2015).
The use of the international strategy and alliances is one of the major ways that have been used by the company to achieve its objectives. The move has also ensured that the company has remained undefeated in the market thus giving it a competitive age. The international strategy has worked perfectly (Jobber, 2012).
There is a set of challenge that is facing the company. One of the challenges facing the company is the pricing practices of the competitors which may drive the firm out of the market. The other challenge is the unavailability of adequate resources sell cups and brewers and also the cups. The greatest risk for the company is registered reduction in prices leading to failure of the firm to break-even.
The recommendations I would make is for the firm to improve advertising, marketing, and public relations. Further, I would recommend the firm to improve the relationship with its distributors and suppliers. An increase in innovativeness and partnering with competitors will also increase its market share. Finally, changes in the strategies used by the company will be healthy.
References
Jobber, D., & Ellis-Chadwick, F. (2012). Principles and practice of marketing (No. 7th). McGraw-Hill Higher Education.
Kotler, P., Keller, K. L., Manceau, D., & Hémonnet-Goujot, A. (2015). Marketing management (Vol. 14). Englewood Cliffs, NJ: Prentice Hall.
Palmer, A. (2012). Introduction to marketing: theory and practice. Oxford University Press.