This Case is about GROWTH STRATEGY
PUBLICATION DATE: March 08, 2012 PRODUCT #: KEL714-PDF-ENG
From 2002-2011, coffee machine producer Keurig Incorporated had developed from a privately owned company with just over $20 million in sales and in addition a plan to go into the single serve coffee arena for the home consumers, to a fully owned subsidiary company of the Green Mountain Coffee Roasters, Inc., a publicly traded company with net earnings of around $1.36 billion and a market capitalization of between $8 and $9 billion. In 2003 its first had been introduced by Keurig At Home brewer. The firm had simply ended deals with both Dunkin’ Donuts and Starbucks that would make these retailers’ java accessible to be used with Keurig’s specialized brewing system.
The firm faced challenges that were much different than when it turned out to be a little, unknown market applicant. John Whoriskey, the vice president along with general manager of Keurig’s At House office, needed to consider about the effect that imminent expiration of essential technology patents as well as the sensed environmental effect of the K Cup(registered company) piece packs would have on the organization’s increase. Whoriskey also wondered what the growth potential of Keurig was, and the way the novel preparations with Starbucks and Dunkin’ Donuts could be leveraged to realize it.