Especially on such unconvincing grounds also

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especially on such unconvincing grounds. Also, especially as a small start-up company, Keurig’swillingness to invest this large of money would show GMCR that Keurig is extremely confidentin the success of K-cup technology and product.GMCR would like remain exclusive because the K-cup is their gateway to expanding basedon their multi-channel distribution strategy. On the other hand, Keurig would prefer to remainunexclusive and form agreements to as many other roasters in order to advantageously maximizeits benefits and profits. However, it is not essential that Keurig remains unexclusive since they donot have a lot of competition. This discourages Keurig’s other alternative of partnering with otherroasters. As a matter of fact, exclusivity would benefit Keurig by continuing strong partnershipwith GMCR as they have started a healthy R and D relationship for many years. Also with thestronger brand image, GMCR holds a stronger position in persuading Keurig to remain exclusive(Appendix B).As for the equity condition, Keurig should agree to have GMCR take a portion of its equitystake. While it could potentially be harmful for an early company to give significant portion,

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Term
Fall
Professor
PEREZ,P.D.
Tags
Brand, KEURIG, Royalties, Green Mountain Coffee Roasters, K Cup

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