Chapter 3 : Technology Helps Starbucks Find New Ways To Complete.
Thursday 31 October 2013
- 1) Analyze Starbucks using the competitive forces and value chain models.
a) Low cost leadership
-Cut prices on some of their big tickets items, and begin offering price-reduced specials, such
a breakfast sandwich and a drink for $3.95
-Cost reductions from procedural changes made it possible for Starbucks to offer these lower
prices.
b) Product differentiation
-Starbucks company has revamped its in store technology and sought to integrate its business
process with wireless technology and the mobile digital platform.
-Intended to emphasize the high quality of its beverages and efficient and helpful customer
services.
-Pay using a smartphone application that integrated with the Starbucks card system.
-Starbucks digital network site was developed in partnership with yahoo and functions as a
content portal
-Foursquare, a location based social networking site for mobile devices.
Starbucks set out to streamline.
c) Strengthen customer and supplier intimacy
-Starbucks is able to reduce the times each employee spends making a drink, this give barista
more time to internet with customers and hopefully improve the Starbucks experience.
-The majority of cost reductions we have achieved come from a new way of operating and
serving
serving
our customers, this allowing the Starbucks company to improve its customer engagement.
d) Focus on market niche.
-Starbucks company use information system to enable specific market focus and narrow target
market better than competitors. ( ex: Cofee Beans, McCafé )
2) What is starbuck’s business strategy? Assess the role played b technology in this business
2) What is starbuck’s business strategy? Assess the role played b technology in this business
strategy.
-Starbucks offer a unique experience. High-end specially coffees and beverages, friendly and
knowledgeable servers and customer friendly coffee shops.
- Allows customer to pay using a smartphone application and Starbucks Digital Network site.
3) How much has technology helped Starbucks compete? Explain your answer.
- Company has revamped its in store technology and sought to integrate its business digital
platform.
- Pay using a smartphone application.
- Starbucks Digital Network site.
- Foursquare check in