Case Study Of Keurig Green Mountain

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Introduction How many times have you ever said to a new or old acquaintance do you want to grab a cup of coffee? Coffee is a drink where we can get to know someone better or just sip while catching up. The latest Hoover’s (2015) market research Keurig Green Mountain is the third largest manufacturer and distributor of coffee and coffee-related products behind both Starbucks and Nestle. Single-cup coffee is experiencing growth, and Keurig Green Mountain built their business on the single-cup concept. The increase in demand for the near future makes now the perfect time to expand. To capture greater market share and to rebound from a disappointing 2015, Keurig Green Mountain is considering increasing their operations into Ethiopia. This…show more content…
Keurig Green Mountain is the market leader in single-cup coffee, but face the challenge of rebounding from a challenging year. Their financial strength and market position along with the goals of reducing costs and increasing sales make now an ideal time to grow.
Justification
Keurig Green Mountain has justification to expand their operations into Ethiopia because of a variety of factors. The United States Department of Agriculture (2015) reports seventy-five percent of exported coffee comes from either Brazil, Vietnam, or Indonesia. Brazil and Costa Rica are reducing their harvests of Arabica beans that go into the Keurig Green Mountain pods. The past decade in Ethiopia doubled their coffee production and experienced nine years of encouraging annual growth (The United States Department of Agriculture, 2015). These mitigating factors make now an ideal time for Keurig Green Mountain to consider expanding if it is
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There are many variables, but projections confirm coffee consumption is on the rise. The potential growth, reduction in costs, and the small investment in expanding indicate they could more than recoup their investment. Keurig Green Mountain needs to consider whether either an internal or external investment is the prudent choice. They should explore the possibility and feasibility of buying a competitor in contrast to building a new facility. Regardless of their decision, Keurig Green Mountain can grow and need to determine the best route to

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