The box entitled “How Would You Do That? 1” helps you see how a profit pool model is developed for a particular industry or geographic or product arena. You are given Starbucks and ready-to-drink coffee market as an example, but never shown a profit pool diagram for that industry. Using the resources you have available, try to map out the basic segment characteristics of this arena for the United States. Start with the narrow definition of the coffee business provided in the box. Finally, try to identify the complements or adjacencies that a company like Starbucks could exploit. Do you see new growth opportunities for Starbucks using all the steps of the profit pool tool?

Developing Corporate Strategy