Cartridge World is an international company that specializes in remanufacturing ink and toner cartridges. It currently has over 1,500 franchise locations worldwide. While Cartridge World is growing at 10% annually, its main competitor HP earns around 50% of its profits from cartridge sales. HP is concerned that Cartridge World's remanufactured cartridges could hamper print quality and has sued Cartridge World for patent infringement. However, restricting consumers' choice to replace cartridges themselves would hurt the environment and customers who prioritize cost. The document analyzes options for HP like segmenting its printer lines or merging with Cartridge World to increase market share through lower prices.