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23 Nov
2019

Can Starbucks create value through… | Good Grade Guarantee!

Can Starbucks create value through its diversification strategy? Will management be able to create valuable, rare, and imperfectly imitable economies of scope through its expansion into juice, tea, pastry, and new Distribution Channels
or will the expansion be the downfall of Starbucks as it was in 2008? 2. Does Starbucks have a core competency in establishing differentiated, premium products in “previously commoditized” markets or is this merely an “invented competency?” 3. Do competitors represent a significant threat to Starbucks competitive advantage through their additions of customized, higher quality coffees to their menus? 4. Should Alex Poole sell his Grandma’s Starbucks stock or keep it in her portfolio?

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