Question

How does the acquisition of Teavana expand the global reach of Starbucks?

a) By increasing coffee sales
b) By targeting a new customer base
c) By reducing competition
d) By decreasing market share

Answer 1

The acquisition of Teavana helps Starbucks expand its global reach by targeting a new customer base of tea drinkers, diversifying its product offerings, reducing competition, and increasing market share.

Step-by-step explanation:

The acquisition of Teavana by Starbucks expands the company's global reach primarily by targeting a new customer base. Starbucks is known for its coffee products, but by acquiring Teavana, a company that specializes in tea, Starbucks is able to appeal to consumers who prefer tea over coffee.

This strategic move allows Starbucks to diversify its product offerings and cater to a broader audience, thereby increasing its potential market. Moreover, this expansion into the tea market could also reduce competition by absorbing a direct competitor and simultaneously increasing Starbucks' overall market share within the beverage industry.