Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 4 pages
Data source: Published sources
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Abstract
Digital-based inkjet and laser printing are being done at an increasing rate worldwide. Coupled with the high cost of ink cartridges, manufacturing inkjet cartridges has become an extremely profitable business for printer manufacturers. However, the exorbitantly high cost of ink cartridges has resulted in customers shifting to the concept of refilling ink cartridges that are done at half the cost of a new cartridge. Cartridge World, an Australian company that operates in many countries through franchise stores, leads this business model. This case, highlights the new business model adopted by Cartridge World. One can also discuss whether its business model can compete with big printer manufacturers like Hewlett-Packard.
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Abstract
Digital-based inkjet and laser printing are being done at an increasing rate worldwide. Coupled with the high cost of ink cartridges, manufacturing inkjet cartridges has become an extremely profitable business for printer manufacturers. However, the exorbitantly high cost of ink cartridges has resulted in customers shifting to the concept of refilling ink cartridges that are done at half the cost of a new cartridge. Cartridge World, an Australian company that operates in many countries through franchise stores, leads this business model. This case, highlights the new business model adopted by Cartridge World. One can also discuss whether its business model can compete with big printer manufacturers like Hewlett-Packard.