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Q.2. What are some challenges Starbucks has faced?
Ans: Starbucks only buys the highest-quality coffee beans for their products, which are more expensive than their rivals. As a result, the competitors will have a cost advantage over Starbucks, leading to a decline in sales and a reduction in profit. Due to this, Starbucks will experience financial difficulties.
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Q.4. What kind of growth strategy does Starbucks use?
Ans: Product differentiation is a category that describes Starbucks' business strategy. As a result, the large coffee chain company prioritizes the quality of its goods, and customers are willing to pay more for great quality.