The following case study given the competitive force that had in the passage were Starbucks offers unique experiences, high-end specialty coffees and beverages, friendly knowledgeable servers and customers friendly shop. The traditional competitive of the Starbucks were McDonald and Dunkin’s Donut. In the economic downturn, many coffee drinks went in search of cheaper alternatives from McDonald’s and Dunkin’s Donuts for their coffee fixes.
After that, Starbucks realize the third customers are active user of the smartphones. The company set out to implement several features and improvement that would appeal to this segment of its customer base. First, Starbucks implement a technology that allows customer to pay using a smartphone application. The application integrated with the Starbucks card system, which allow regular customer to pay with pre-paid and rechargeable card at any Starbucks branch. The customer report that paying using application is available, for all major smartphone operating system, is must faster that traditional form of payment. Beside that, Starbucks set out to streamline the business processed used in each of its scores so that baristas no need to bend down to scoop coffee, cutting down on idle time while waiting for coffee to drain and finding ways to reduce the amount of each employee spends moving a drink.
Make this fast food more lower prices, it is also allowing the company to improve its customer engagement. By 2011 Starbucks has returned to profitability. Beside that Starbucks launched the Starbucks Digital Network” when majorities of their customer also use mobile devise to connect to the in store Wi-Fi networks Starbucks customers using the site will receive free wall street journal access select free iTunes downloads and wide variety of other content. This arrangement will allow users to check in and receive awards points using Starbucks site. For the suppliers the Starbucks Digital Network site was developed in partnership with Yahoo and function as a content portal.
As we know, the Starbucks has applied a few value chains in their business. The primary activities that they use were related to the production and distribution of the firm’s product and services. Firstly, Starbucks implemented a technology that allows customers to pay by using a smartphone application. Next, Starbucks had decision to made concerted effort to become more efficient, to reduce waste and use time save to provide better customer services.
The Support activities are needed to make the delivery primary activities possible and consist of organization infrastructure an do others. That will be shown when the Starbucks were implemented a technology. The Starbucks implement a technology that allows customers to pay with pre-paid and rechargeable card at any Starbucks branch. This application allowed the regular customer displayed the bar code in the smartphone then the cashier will only scan bar cod and the resulting sale is charged into the customer’s Starbucks account.
Beside that Starbucks increases the effort to be more efficient by set out the streamline the business process used in each of its stores so that baristas do not need to bend down the scoop coffee, cutting down idle time while waiting for coffee to drain, and finding ways to reduce the amount of time each employee making a drinks.
Starbucks making the benchmark that at 2011, Starbucks had returned to profitability and continuing growth, with plans to open 500 new stores, in large part because of the success of each these change Starbucks offering price reduce specials, cost, reduction from procedures changes made it possible for.