Why Coca-Cola acquired Costa Coffee instead of Starbucks?

Expert Solution

Coca cola had acquired the Costa coffee instead of Starbucks because of following reasons-

A. it was a comparatively smaller company and acquisition of this company was very easy because the Coca-Cola did not have to offer a large amount of money.

B. Coca-Cola will be having a better amount of control over a small company rather than a Starbucks because there would have been a lot of conflict between the stakeholders of the company.

C. This deal has gained the Coca-Cola an access into the Other products than soda so it has given the Coca-Cola and opportunity to diversify itself at a lower possible cost into the the Asian and European market

D. this was our new product line and Coca-Cola was trying to go into it with a smaller scale

E. Starbucks is not a profit making company in majority of the other countries other than United States of America, So acquisition of Starbucks would have costed money but it had not yielded benefits.

jeff jeffy answered 2 years ago

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