143k views
3 votes
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

User Mdebeus
by
8.3k points

1 Answer

2 votes

Final answer:

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.

User Garpitmzn
by
8.6k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.