Starbucks is the world’s famous chain of coffee shop in the world. In early 1999, in a surprise move by Starbucks, it had acquired the famous Hear Music to push itself aggressively in the music retail market and gain mammoth success. Soon after acquisition, it had established itself as a recognized music retail outlet due to the success of albums by Ray Charles and others that had been put up for sale in its Hear Music retail stores.
Meanwhile, Starbucks coffee chain has posed a threat with the increased competition in coffee business due to emergence of many international and national players. By keeping the competition and reducing opportunities in the coffee business, the company decided to expand into diverse business by leveraging on its parent coffee brand. Analysts had a skeptical view that it may be risky for Starbucks to be shifting its focus away from its coffee brand, which is its identity.
Being a strategy maker, you have to decide that either Starbucks keep on putting in Hear Music or would it focus on its coffee business? Discuss with solid arguments and examples.
0 comments:
Post a Comment