Question: 1 . Conduct a Porter's 5 Forces Model ( Rivalry , Buyer Power, Supplier Power, Threat of Substitutes, and Threat of New Entrants ) on

1 .

Conduct a Porter's

5

Forces Model

(

Rivalry

,

Buyer Power, Supplier Power, Threat of Substitutes, and Threat of New Entrants

)

on Starbucks in the gourmet coffee industry. Include the strength of the force

(

high

,

medium, or low force

)

and defend your decision.

2 .

Let's consider strategic groups

(

cluster of firms that share similar strategies

)

mapping. How can we divide the existing US coffee firms into several strategic groups? Rank them in terms of their coffee prices and menu variety. Those with similar price and variety would be grouped together. Which group has the highest and which group has the lowest market share?

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