Wednesday, March 5, 2014

DRM K-Cup for Keurig?

(3/5/2014) Will consumers buy proprietary k-cup coffee just for the Keurig coffee maker? Well, I think Keurig may overestimate its muscle to push consumers around. Time will tell. You may wonder why Keurig wants to take such a risky move. Well, Keurig is selling its coffee machine cheap expecting consumers will buy its k-cups. However, coffee is not like printer toner and people have very different tastes on their preferred coffee. So Keurig cannot really secure its profit from selling its K-kups. Consumers can buy Starbucks or other brandname's cups. There are plenty of knock-offs in the cup and in the coffee machines as well. This disruptive innovation to people's coffee drinking behavior may turn out to be short glory days for Keurig.

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