SWOT Analysis of Keurig

Following is the SWOT analysis of the brand Keurig which is going to cover the strengths weaknesses, opportunities and threats. The strengths and weaknesses are internal to the company whereas the opportunities and threats are external. As a company Keurig can further increase their strengths, minimize weaknesses, exploit opportunities and overcome threats.

Strengths

• Keurig is known for their high-quality products.

• Keurig staff is able to prepare beverages in less than a minute with no mess and little cleanup.

• More than 290 varieties of both hot and iced tea, coffee, hot cocoa etc.

• It has developed an innovative brewing technology that lets it offer the unique taste it is famous for.

• It has a strong partnership as well as brand equity.

• An energetic workforce of 6000 employees.

• Keurig has grown through a number of strong acquisitions (Wong, 2013).

• Keurig is known for its CSR activities that have helped it develop a brand loyalty and value.

• A lot of focus on sustainability initiatives especially in operations and supply chain.

Weaknesses

• Keurig depends on a single China based manufacturer for its single cup brewers supplies.

• The brewing technology used by Keurig allows it to brew only one cup at a time.

• It’s patent of K-cup is expiring soon.

• A number of its varieties especially the K-cup varieties are expensive.

• Keurig’s complete business model depends a lot on bean and machine manufacturers.

• The K-cups used have been known to cause environmental problems as they are not recyclable. Keurig has received criticism from environmentalists.

• Keurig has received criticism from the SEC.

• The absence of outlets in many nations where its competitors have grown strong.

Opportunities

• Keurig can expand into oversea markets.

• Other than coffee, it can add other beverages and drinks to expand its menu.

• It can also expand into other food items such as ice cream.

• It can open outlets at educational institutes, workplaces, hospitals, and hospitality locations.

• Keurig can decrease its reliance on a single manufacturer and enter into a contract with other manufacturers as well (Daniel, 2016).

•  Its K-cup technology is not recyclable. It can work on that to make it recyclable and avoid the criticism it receives from environmentalists.

• The US coffee market is growing, presenting an opportunity for Keurig to grow as well.

Threats

• Recently, there has been a growth in the number of on-the-go coffee shops increasing competition for Keurig.

• The price of un-roasted beans, being a commodity, fluctuates regularly in the agri-trading market.

• Many of the competitors of Keurig such as Starbucks and Dunkin Donuts have expanded vastly into the global markets successfully developing their brands in the international markets outside of the USA.

• Further increase in competition when its patents will expire.

• Criticism from the environmentalists and SEC has negatively impacted the reputation of Keurig.

• Starbucks and other competitors are making their own brewing machines while Keurig still relies on a single manufacturer for its machine needs.

• A number of health and safety concerns have been raised on the chemicals in the brewing machines

References

Daniel, C., 2016. Keurig SWOT Analysis. [Online] Available at: https://creately.com/diagram/example/in6apga31/Keurig%20SWOT%20Analysis [Accessed 31 July 2017].
Wong, H., 2013. Green Mountain Coffee Roasters and Keurig Coffee. [Online] Available at: https://prezi.com/p7khugyazoma/green-mountain-coffee-roasters-and-keurig-coffee/ [Accessed 31 July 2017].

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