Question: Read the case provided and answer the following questions:
1. 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?
Formatting guidelines for case write-ups are:
1. Three to five double-spaced pages, not including exhibits;
2. One (1) inch margins;
3. Twelve point (12pt) font
4. Figures, tables, and exhibits (e.g. financial analysis, 5-forces analysis, VRIO analysis) are expected and can be included in an appendix to these analyses and are not counted against the page limit. Be certain to appropriately reference your exhibits in the body of the case analysis. Do not draw on sources of information about the company outside the case materials.
Information related to above question is enclosed below:
Attachment:- StarbucksAnAlexPooleStrategyCase.rar