4. How is diffusion likely to be affected by the expiration of patents and the introduction of lower-priced coffee capsules? Brands such as Nespresso, Keurig, and Senseo are competing for the attention of dedicated coffee lovers who want to brew one very good cup of coffee at a time without taking a lot of time. Although each brand’s single-serve coffeemaker works a little differently, they are actually a system with two vital parts, similar to the combination of razor and blade. First is the “razor,” that is, a coffeemaker designed to heat the right amount of water to the precise temperature needed to bring out the most flavor from the

“blade,” a premeasured capsule of coffee or espresso grounds.

Once consumers own the coffeemaker, they simply buy a supply of replacement capsules to enjoy their choice of fresh-brewed coffees, ready in a matter of seconds at the touch of a button. In addition, consumers usually have to buy espresso cups when they switch to single-serve machines, because traditional coffee mugs are too large for most of the new machines. In fact, thanks to so many consumers making the switch, stores report that espresso cups are outselling traditional coffee mugs.