Having entered China in $1999,$ Starbucks faced a setback in the region in $2018$ which could be attributed to the thread to Luckin, a local start up in China. Starbucks must evaluate what it should do in order to maintain its dominance in China.

Q$1.$ What are the target segments and the value propositions for Starbucks and Luckin? In particular, how do they differ? What is the unique selling proposition for each firm?

Q$2.$ Do you think delivery is profitable for Starbucks?

Q$3.$ Going ahead, what should Starbucks do to more effectively compete against Luckin? Be specific with respect to product, place, price, and promotion.