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Week 2 Learning Activity 3

Week 2 Learning Activity 3

Q Why is Nestle doing this? Why is Starbucks doing this? https://www.bloomberg.com/news/articles/2018-05-07/nestle-enters-7-2-billion-global-coffee-alliance-with-starbucks

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I think that Nestle is doing this because it knows that it has to increase and get an enhanced value of its low market shares, especially in the United States of America. Nestle knows that if it continues to remain on its own by formulating and implementing strategies on its own without taking the assistance of another organization, Nestle will end up by just being at the same level or at a lower level of market share in comparison with its target market competitors. Starbucks will be the major competitor of Nestle to watch for Nestle and therefore, Nestle knows that the new deal will be beneficial for Nestle in the long run to maintain similar levels of market share by Nestle as well as by Starbucks.