Cartridge World, The Australian Cartridge Refilling Company's Business Model: Can it Sustain?



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Code :BSM0032

Year :
2006

Industry : Engineering, Electrical and Electronics

Region : Australia

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction:Over the years, the increase in the usage of digital-based inkjet and laser printing in households and offices has led to an ever-increasing demand for ink cartridges, making it an extremely lucrative business for printer manufacturers. However, with ink cartridges becoming expensive, customers world wide started looking out for low-cost alternatives like refilling. Cartridge World, an Australian company provides its customers in various countries the service of refilling empty ink cartridges at half the cost of the newones. It is believed that this business model from Cartridge World might pose challenge to big printer manufactures like HP whose majority of profits come fromthe sale of ink cartridges. However, with the market share of refillers being less than a quarter of original equipment manufacturers' (OEMs) ink cartridges replace mentmarket, some analysts doubt whether refillers could really pose a challenge to them.

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