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Strategic Management (Essay Sample)

Question 1: Porter' s 5 Forces model is particularly useful because it can lead you to powerful counter-intuitive conclusions. Using Strategy Capsule, 3.1, use Porter's 5 Forces Model to analyze the U.S. smokeless tobacco industry. Question 2: Starbucks and Dunkin Donuts have similar market presences, yet Starbucks outperforms Dunkin Donuts by a factor of nearly a thousand. Are the two companies really in the same business or are they in different business. Use Porter's 5 Forces Model and Grant's key profitability factors to explain why they are or are not in the same business and why you might or might not expect such drastic differences in profitability. I have uploaded STRATEGY CAPSULE 3.1 that you need in question 1 and powerpoint explanation of Grant's key profitability factors for question 2. Also, I would really really appreciate if you can finish it as soon as possible please...! Thank you very much. You do not have to do question 1. please only complete two pages of question 2. Thanks source..
Strategic Management
Starbucks and Dunkin Donuts are two businesses that deal with the same product, coffee. However, Starbucks have been performing better in the market than Dunkin Donuts. This is in terms of the overall profits that it makes as compared to Dunkin donuts as well as the its strategies in reaching its target market. The existence of Starbuck in the market for a longer time may also explain the difference. The unstable market conditions that the latter have been experiencing since it started its operations led to formation of long term strategies to face out competition that has been on the rise.
The valuation of Starbucks products to its customers seems to be a bit high compared to how customers value the products from Dunkin. Starbucks has great bargaining powers from the suppliers` perspective to the customer`s perspective. This has led to low costs of production that has led to its strategic pricings that face out its rival competitors.
The profitability and competitive strategies that Starbuck have implemented have led to its success in the competing environment. The existence of Starbuck for a very long time now may have created its reputation to the customers hence a good profitability base. This has led to the stableness of the business even with its higher prices of the products than the competitors. Many customers still go for the Star...
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