As the case explains, at one time customers were likely to buy their donuts at Dunkin' Donuts and their coffee at Starbucks. However, several years ago Dunkin' Donuts added espresso drinks to its menu. If Dunkin' Donuts adopted this strategy in order to get its donut customers to spend their coffee dollars at Dunkin' Donuts instead of at Starbucks, what type of growth strategy does this change represent?

Question

Business

Jenny Rich

29 November, 12:08

As the case explains, at one time customers were likely to buy their donuts at Dunkin' Donuts and their coffee at Starbucks. However, several years ago Dunkin' Donuts added espresso drinks to its menu. If Dunkin' Donuts adopted this strategy in order to get its donut customers to spend their coffee dollars at Dunkin' Donuts instead of at Starbucks, what type of growth strategy does this change represent?

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Answers (1)

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Norman · Answer 1

The answer is: Product development strategy

Explanation:

A Product Development Strategy is a growth strategy carried out by a company that introduces new products (or updates existing ones) into current or new markets.

In this case, Dunkin' Donuts introduced its new espresso drinks (new product) to its stores' menus. They were trying to get their donut customers (current market) to buy their coffee also.