StarBucks Strategy

Starbucks followed a predative policy to eliminate local cafeterias in their area. Their business strategy which is known as the ‘business cluster’ involves opening multiple outlets at a particular location. Since most of it’s outlets are owned by Starbucks only( no franchise), it ends up making a profit in the long run even if some of it’s stores don’t sell that much. With time, the local stores are not able to compete with Starbucks who eventually reduces the number of outlets in the area while retaining it’s customers.

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