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FUNDAMENTALS OF STRATEGIC MANAGEMENT Starbucks Cola Wars Ducati Economic Average – Industry Structure –Competitve positiong - profitablity 5 forces – looks at a point of time – judgement and logic not over a period of time Industry structure are slow to change and don’t change frequently. Starbucks Dominate the industry- that is unattractive Debated the wisdom – 6% return on sales. – trying to change the industry . can they finance it. How many starbucks can it support. Will it be achieve their goal.will the threat of entry bear down Coke- pepsi Industry structure- bottlers doing all the work – fwd integrating -dint make much 30% 20 % after tax Bottling 9% pre tax – y from big business to crummy bsines.... – not much investment for bottler why they be a better bottler – conc industru vulnerable due to the bottler – serious buyer willingness to pay . Ducati Motorcycle company – Italian heritage – museum.. wisely spent for the museum – gone......

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