1. By purchasing La Boulange what competitive advantage, does Starbucks hope to gain?
2. How does Starbucks' current market power increase its chances for success in expanding its product offerings to include bakery items?
3. Starbucks' previous attempts to include food in its product offerings have met with mediocre results. Currently, only one-third of customers buy food products at Starbucks. How does using vertical integration increase Starbucks' financial risk by buying and operating its own bakery supplier?