One Reason Starbucks Experienced a Decline in Sales in the Late

question 16

Multiple Choice

One reason Starbucks experienced a decline in sales in the late 2000s is because

• A) the product they offered was becoming less differentiated from their competitors' products.
• B) the coffeehouse market transitioned from being monopolistically competitive to perfectly competitive.
• C) barriers to entry became more restrictive in the coffeehouse market.
• D) the number of competitors in the market declined dramatically.

---

Definitions:

Stock Repurchase

A corporate action in which a company buys back its own shares from the marketplace, reducing the number of outstanding shares.

Vertical Acquisition

A business strategy where a company acquires another company that operates in the production process of the same industry but at a different level, such as a supplier or distributor.

Building Supply Store

A retail establishment that sells materials and components used in the construction and maintenance of buildings and structures.