1.Having started as a retail coffee shop chain, Green Mountain transformed into a coffee roaster and wholesaler of

packaged coffee. Later, through its acquisition of Keurig, the development and marketing of the single-cup brewing

system and K-Cups became the dominant part of its business.

a. Contrast the business risks associated with the three business models adopted by Green Mountain over time, and

identify major competitors for each.

b. The production and marketing of the single-cup brewing system employed a strategy commonly known as the

razor/razor-blade pricing strategy. Briefly describe this strategy. In what sense are the razors ''cheap'' and the razor

blades ''expensive?''

c. Identify two companies from two different industries that have successfully managed the risks inherent in the razor/

razor-blade strategy. Briefly explain their strategy. (Please do not use razor manufacturers.)

d. For the companies identified in part (c), what financial and operational metrics (data) would provide relevant

information to investors that would assist them in understanding/projecting the future prospects and growth of a

business employing the razor/razor-blade pricing strategy?

2. Green Mountain announced operating results for the second quarter