Give a response to the following statement Starbucks decisio

Give a response to the following statement:

Starbuck\'s decisions to extend their brand into bookstores and supermarkets, onto United Airlines, into licensing agreements with Dryer\'s, and to sell soluble coffee in supermarkets is way for them to leverage their business and explore different avenues from their norm.

Solution

This is indeed a great move by Starbucks where the game and reputation can get them to easily flourish in other businesses on the whole and also the entry costs and advertisements will be relatively less keeping the brand value with which it can be said that the opportunity costs will be less than before on the whole.