Responses to the article:
The biggest threat I believe will be other single serving
coffee makers that can be purchased. The
machine itself only last so long, it is a large purchase but not large enough
to stop customers from looking around to upgrade or replace their coffee maker
every few years. Of one that comes to
mind is Starbucks single serving machine.
If I had not just purchased my Keurig, that would have been my coffee
maker of choice. So in a few years when
I do opt to purchase a new one, it will be interesting to see what options are
available in the single serving coffee maker market.
I do believe there is room for improvement for the design of
the K-Cup. They tend to be too large and take up too much space. I don’t really appreciate having a spindle of
single coffee k cups on my counter, it is too bulky and just adds to additional
clutter. Even stored in a cabinet their
circle shape does not have many advantages for stacking and storing. So, yes, I do think the design will be “gone
with the wind”
What model do they follow?
They follow the I/O perspective on value creation. The
environment of the single coffee maker/product is dominated by the influence of
the external environment.
Protecting themselves from competitors:
I think they have started to do this already, but my suggest
would be to offer a couple of models, including one on the lower end that
generic models wouldn’t be able to price cut.
If they are able to provide a model that lures consumers into their
brand, they could get them hooked and when they go to upgrade or replace the
product they have opened the door for the customer to stick with their brand
and a potential upgrade to one of their standard or deluxe machines.
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