Question

As described in the chapter case, the competitive force of ________ resulted in Starbuck's downturn in 2008, and it employed information systems in a strategy of ________ to combat this force.

A) traditional competitors; product differentiation
B) new market entrants; product specialization
C) substitute products; market niche
D) customers; customer intimacy

Answer 1

Starbucks faced increased competition from traditional competitors and used a product differentiation strategy, supported by information systems, to address this competitive force.

Step-by-step explanation:

As described in the chapter case, the competitive force of traditional competitors resulted in Starbucks' downturn in 2008, and it employed information systems in a strategy of product differentiation to combat this force. The forces of globalization and new communications and information technology have increased the level of competition by bringing in more players from different regions and countries. This can be seen in both local markets and global markets where business-to-business websites allow buyers and suppliers from anywhere in the world to connect.