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How can Starbucks increase value through the acquisitions? Economy of scope (shared activity or corporate level core competency)? Market power? Financial economy?
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The paper provided information about how Starbucks could increase its value through acquisitions. It demonstrated the fact that with the help of product expansion and diversification the company could increase its value. It revealed that the organization must make an efficient use of shared activity to enhance its economy of scope. On the other hand the market power will be helpful for the company to increase the price of the products that will be beneficial for the company to gain market share. Moreover, the paper stated that the organization must make use of social media outlets and provide mobile payment options to its customers to gain value. Furthermore, the paper also discussed about financial economy that is regarded as beneficial for Starbucks to increase its value.
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