CARIBOU COFFEE

A full case study analysis of a real company called caribou coffee inc

A Full Case Study Analysis Of A Real Company Called Caribou Coffee Inc

Company Overview

Headquartered in Minneapolis, Minnesota, Caribou Coffee Company cofounders John and Kim Puckett's efforts made caribou a weel known name for coffee after establishing the first coffee house in 1992.Caribou Coffee Company is the nation's second largest specialty coffee company with 2,800 employees and three facilities that roast, package and distribute 4 million pounds of coffee to over 200 companyowned stores. Caribou Coffee's stores have the look and feel of an Alaskan lodge, with knotty-pine cabinetry, a fireplace and soft seating. The company sells coffee, equipment and other goods via the Caribou Coffee Web site and select retail/grocery partners. The company was founded with the intent of building a leading national specialty retailer in the high growth industry of gourmet coffee. Caribou Coffee Company, Inc. is a privately held, neighborhood-based, specialty retailer of high quality coffees, teas, bakery goods, and related merchandise. The Minneapolis-based company operated 125 stores in six states at the beginning of 1999 and was estimated to be the second largest company-owned and operated coffeehouse chain. Caribou Coffee is positioned to take the leap from regional operator to national player in the rapidly growing gourmet coffee industry. (Mayhardt S. 2004)

Caribou Coffee has come a long way from a coffee shop in Minnesota to a publicly traded company on the NASDAQ. Based on the number of coffeehouses operated in 2007, Caribou Coffee was the second largest company-owned gourmet coffeehouse in the United States. However, the competitive market, along with a potential class-action lawsuit involving store managers has caused some serious issues, including increasingly high net losses and decreasing stock price. By providing “an experience that will make the day better” Caribou Coffee has created competitive advantage in their store operations, but the question remains whether they can maintain this and use it to sustain their growth strategy. ( Wingfield, Nick. 2003 Pp. A8.)

Caribou Coffee's dedication to creating a unique experience for customers by combining high quality products, a distinctive coffeehouse environment, and excellent customer service, differentiates their place in the coffeehouse industry. Creating strong human capital is the foundation for this differentiation strategy. The issue that will be analyzed in this case is whether or not Caribou Coffee's efforts in developing human capital will enable them to achieve sustainable competitive advantage given the competition and threats they are facing. (Charles R. 2008)

Business Description

Caribou Inc specialies in coffee-related items. espresso drinks, baked goods, coffee beans, and branded merchandise. Caribou is the first coffee company recognizes itself as a publisher of SCAA (Specialty Coffee Association of America). Caribou offers gourmet coffee, loose leaf teas, blended coffee, espresso drinks and many bakery products like bagels, muffins, cookies, sandwich and cinnamon rolls. Therefore Caribou Company is recognized all over the world due to its quality and production of different categories of goods.

A few financial data

In late September 2005 Caribou Coffee became the world traded company with huge ...