in-store technology and

sought to integrate its business

processes with wireless
technology and the mobile
digital
platform. Its strategy
emphasizes the high quality
of its beverages and efficient
and
helpful customer service.
Technology gives the
company the edge by
allowing it to offer customers
free Wi-Fi
service in all its stores. That
keeps customers in the store,
hopefully purchasing additional
products.
3. How much has technology
helped Starbucks compete?
Explain your answer.
Starbucks launched what it
calls the “Starbucks Digital
Network,” a portal designed
specifically for mobile
devices as opposed to
traditional Web browsers. The
site is
optimized for all major
smartphone operating systems
and responds to the multi-
touch
capability of devices like the
iPad.
The site functions as a
content portal where
customers can receive free
Wall Street
Journal access, select free
iTunes downloads, and other
content. The site is integrated
with Foursquare giving users
the ability to check in and
receive award points using
Starbucks site.
in-store technology and
sought to integrate its business
processes with wireless
technology and the mobile
digital
platform. Its strategy
emphasizes the high quality
of its beverages and efficient
and
helpful customer service.
Technology gives the
company the edge by
allowing it to offer customers
free Wi-Fi
service in all its stores. That
keeps customers in the store,
hopefully purchasing additional
products.
3. How much has technology
helped Starbucks compete?
Explain your answer.
Starbucks launched what it
calls the “Starbucks Digital
Network,” a portal designed
specifically for mobile
devices as opposed to
traditional Web browsers. The
site is
optimized for all major
smartphone operating systems
and responds to the multi-
touch
capability of devices like the
iPad.
The site functions as a
content portal where
customers can receive free
Wall Street
Journal access, select free
iTunes downloads, and other
content. The site is integrated
with Foursquare giving users
the ability to check in and
receive award points using
Starbucks site.
Starbucks uses a product
differentiation strategy to set
itself apart from others by
offering
a unique experience of high-
end specialty coffees and
beverages, friendly and
knowledgeable servers, and
customer-friendly coffee shops.
1.Analyse starbucks using the competitive forces and value chain models.

 Traditional Competitors

Competitive force

McDonald, Dunkin’ Donuts

-Selling similar products, cheaper.

 Substitute Products and Services

           Starbucks also used product differentiation and information systems to alter their
existing menu. They have now enabled new products for customer convenience and offered
price reduced specials; to be able to charge lower prices Starbucks had made alterations in their
supply chain. They had to match what their fellow competitors were offering, although thanks to
low cost leadership Starbucks were able to operate more efficiently and save on operational
costs due to faster and better customer service. The reductions spent in making the drinks
allowed the company to return to the profitable level.
 New Market Entrants
The third competitive force being to focus on the market niche meant Starbucks had to attempt
on narrowing the target market better than their competitors. An information system assists this
strategy as it can produce data to analyse future sales and marketing techniques. Using the fact
that the mobile digital platform meant many consumers use smart phones; Starbucks engaged
into the ‘Starbuck Digital Network’ which is a portal designed specifically for mobile devices and
optimized for smart phone operating systems. The site offers free Wall Street Journal access,
iTunes downloads and various other perks. Starbucks loyal customers spend time in the stores
and receive free Wi-Fi access.
 Customers
The use of information systems achieves a low cost leadership; there are low operational costs
and therefore a company can afford to charge lower prices. Starbucks engaged in the mobile
digital platform when realising over a third of their customers were smart phone owners. The
Starbucks App allows regular customers o pre pay/top up their card and use this at every branch
to pay for their drinks by scanning bar code displayed on their phone. The app allows customers
in a hurry to pay quickly, showing the use of management information systems at a retail level
of the supply chain making the customer experience more efficient and of a better quality.
Streamlining business processes meant a shorter customer wait due to the time of making the
drink being reduced, which essentially meant each barista could make more drinks by the hour,
therefore increasing revenue.
 Suppliers
Coffee beans ( choose suppliers based on quality, environmental and   economic issues).
Coffee beans can be produced only in certain geographical areas ( tropical highlands of the
western Hemisphere-Brazil).
 Strengthening customer and supplier intimacy is essential for large companies whose consumers
may feel insignificant. The case study displays customers felt as though they were visiting a fast
food chain due to the their experience being very brief. Management information systems and
streamlined business processes have allowed time saving to transfer into providing a better
customer service; customers now feel more connected with a friendlier service, the chain have
also started adding names to their customer drinks to offer a more personalised service and
better customer experience.

Value chain models

 Primary activity
Operation:

in-store wireless network to run store operation and to connect to the company’s private

corporate network systems

Sales and marketing:

Starbucks card system.

Advertising through social media.

Support activities
Human resources
Workforce planning system
Reduce amount of time each employee spends marking a drink.
2.What is starbucks business strategy?  What assess the role played by technology in this
business strategy?

Starbucks business strategy was to continue serving high end speciality coffee and improve the
customer service so that consumers did not feel like they were visiting a local fast food chain.
Additionally, to also improve customer service and eliminating inefficiencies in coffee production.
Technology assisted the business strategy due to the addition of the mobile digital platform and the
Starbucks Digital Network, giving customers the benefit of free Wi-Fi access and Starbucks Apps to
access on their smart phones.

3.    How much has technology helped Starbucks compete? Explain your answer.
Without the use of technology within the innovation of Starbucks, the company would have been
unable to launch the Starbucks Digital Network, and the use of paying via the Starbucks App on smart
phones. To add, the newer in store technology helped the baristas to make drinks faster, improving
customer service and speed of service, allowing the company to generate a higher level of revenue.