The key problem facing Nespresso in implementing a "razors and blades" strategy for its Nespresso system is that:
A)It has been unable to prevent the emergence of other suppliers of Nespresso-compatible coffee capsules
B)Its Nespresso coffee machines are manufactured under license by other companies
C)Keurig Green Mountain is the market leader for capsule coffee systems in the US
D)The high cost of Nespresso capsules compared to traditionally-packaged coffee

Question

Quizplus · Accepted Answer

The key issue for Nespresso in executing a "razors and blades" strategy is the inability to prevent other companies from producing compatible coffee capsules, which undermines their control over the capsule market and affects their profit margins from the sale of capsules.

The Key Problem Facing Nespresso in Implementing a "Razors and Blades