Question

1. Explain the type of relationship between the Starbucks and the Shanty. Also, give the characteristics of the two that makes them distinct from each other.

Answer 1

Starbucks and Shanty both are the retail chains, but Starbucks have global presence with exclusive products that are the symbol of Starbucks, but Shanty represents the food restaurant that deliver food, but not at a vast level as that of Starbucks. People have a choice to go for either Starbucks or Shanty hence making both these chains as substitutes of each other. So, there is a relationship of substitution and catering to the different target segment in the market between Starbucks and Shanty.

Starbucks has the characteristics of exclusivity, brand loyalty and sustainability practices that makes Starbucks to be unique service provider, building its own brand. But, it is distinctive to the Shanty that has the good product quality, but lesser association with the brand, or exclusivity that is only associated with the Shanty. So, Starbucks and Shanty are distinctive of each other.