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  1. When Walmart decided to incorporate grocery stores into some locations and created "supercenters," was this a business-level strategy of differentiation or a corporate-level strategy of diversification? Why? Explain your answer.

  2. How can related diversification create a competitive advantage for the firm?

  3. Franchising is widely used in the casual dining and fast-food industry, yet Starbucks is quite successful with a large number of company-owned stores. How do you explain this difference? Is Starbucks bucking the bandwagon effect, or is something else going on?

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