1. Based on your experience as a coffee consumer, does Starbucks’ strategy as described in Concept & Connections 1.2 seem to set the company apart from rivals? Does the strategy seem to be keyed to a cost-based advantage, differentiating features, serving the unique needs of a niche, or some combination of these? What is there about Starbucks’ strategy that can lead to sustainable competitive advantage?

Answer: I have to be honest I like my coffee but I don’t get why people are so fascinated with paying so much for coffee. That being said I will say that Starbuck definitely has set itself apart from its competitors. I know people whose day is just ruined if they don’t have their Starbucks coffee in the morning. I guess the reason they enjoy and like Starbucks is because Starbucks has quality products, with guidelines so detailed that they outline how much time it should take for their coffee to be prepared. I believe Starbucks uses a broad differentiation strategy because it focuses on a broader segment of the total coffee market. Starbucks strategy of continuing to grow their brand globally by increasing store locations in other countries and in the U.S coupled with offering non coffee products should allow them to sustain a substantial competitive advantage over its competition.

3. Elements of eBay’s strategy have evolved in meaningful ways since the company’s founding in 1995. After reviewing all of the links at the company’s investor relations site, which can be found at investor.ebayinc.com, prepare a one-to-two page report that discusses how its strategy has evolved. You report should also assess how well eBay’s strategy passes the three tests of a winning strategy.

Answer: Since eBay was started in a living room in 1995 as an auction web site that allowed people to sell collectibles. It has definitely evolved; from an auction web site that