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This is just an increase compared to the first quarter of 2006. The last couple of years the coffee market has increased immensely. The demand for specialty coffee has increased over the last couple of years, therefore a lot of new companies have entered the coffee market. Due to all the existing companies on the market, it is hard to establish a good brand name and remain a good position on the market.
The coffee industry can be defined as a monopolistic competition. There are many producers and consumers, the goods and services are heterogeneous but the companies are still able to differentiate their products...
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