SWOT Analysis and Strategic Alternatives for Keurig Dr Pepper

Strategic Alternatives Assessment: A Case of Keurig Dr Pepper
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Strategic Alternatives Assessment: A Case of Keurig Dr Pepper
Many factors push companies to pursue growth. Some of the reasons include the need to increase sales and revenues and the existence of a business opportunity. While pursuing growth is essential, companies must adopt strategic approaches to help them achieve the desired growth. According to Lynch (2021), strategic approaches must be sustainable to ensure the company has a sustainable competitive advantage and growth. This paper analyzes the potential growth opportunities and strategies for Keurig Dr Pepper or simply Keurig using the results of a SWOT analysis.
SWOT Analysis
Strengths
Strong merged brand
An extensive product offering
Healthy product offerings

Weaknesses
Its partnership model contributes to a lost partnership with Fiji

Opportunities
Online shopping and delivery
Increased demand for functional beverages

Threats
Intense competition from well-established global brands
Strained supply chain
Shifting consumer demands

Opportunities in the Industry
Keurig operates in the beverages industry, which is quite competitive and consumer-driven. One of the opportunities in this industry is online shopping, ordering, and delivery. The COVID-19 pandemic forced consumers into online shopping and delivery, and this shift has become part of the post-COVID-19 shopping experience. The shift to online shopping in the beverage industry and beyond allows Keurig to increase its reach and accessibility. It can leverage online shopping to promote its brand awareness and growth.
Another opportunity is the increased demand for functional beverages. According to the Globe Newswire (2022), more consumers are shifting towards functional beverages. Keurig offers some functional beverages such as functional water and ready-to-drink-teas (Keurig Dr Pepper, n.d.a). However, it can leverage this opportunity by expanding its functional product offering. It has the scale and capabilities to do so because of its strong merged brand, which resulted from the merger between Dr Pepper Snapple Group and Keurig Green Mountain (PR Newswire, 2019).
Competitors
Keurig’s main competitors in the North American beverage industry are Coca-Cola and PepsiCo (Hirsch, 2018). As shown in the SWOT analysis table, competitors pose the biggest threat to the company's growth and sustainability. For instance, Coca-Cola has a strong brand with a global presence, which gives a larger market share at the expense of Keurig. In addition, these competitors have an extensive distribution network (Hirsch, 2018), which gives them a wider customer reach. This distribution is necessary, especially now that the industry is facing issues in the supply chain (Crawford, 2021). Thus, these competitors pose the risk of reducing Keurig’s market shares.
Advantages over Competitors
Despite the stiff competition from the two competitors, Keurig has some advantages over them. As indicated in the SWOT analysis table, Keurig has a strong merged brand due to the merger between Dr Pepper Snap...