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For millions of people, visiting Starbucks is a daily ritual. Statistics from Euromonitor International, an independent provider of strategic market research, show that Starbucks has

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For millions of people, visiting Starbucks is a daily ritual. Statistics from Euromonitor International, an independent provider of strategic market research, show that Starbucks has seen its market share in China's chain coffee shop industry grow from 78.8 percent in 2016 to 80.7 percent in 2017. However, Starbucks worst nightmare in China-competition from fast-growing start-ups like Luckin Coffee-is coming true. Qian Zhiya, CEO of luckin coffee, told China News Service her goal was to "beat Starbucks in China." Starbucks signed lease contracts with property owners which limit them from making rental agreements with potential competitors of Starbucks. Luckin Coffee opened an online store on its app and WeChat mini program, selling a wide range of products at discounted prices. Besides coffee related products such as coffee mugs and Luckin gift cards, the online shop also offers electronic accessories including AirPods, mechanical keyboards, and electric toothbrushes, as well as snacks and nuts, sanitizing products, and canvas bags. Please analyze these strategies adopted by the two companies and also this business war. (20)

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