Starbuck Case Study
Starbuck Case Study
Case Study Questions & Answers
1. Analyse Starbucks using the competitive forces and value chain models.
The following case study on the global coffee chain Starbucks is based on the ability of competing with the assistance of technology. Companies are using management information systems to assist them in many ways such as product quality and efficiency as well as customer service/customer intimacy. Starbucks is proud owner to 16,850 coffee shops and has internationally opened global franchises. Starbucks hit a few business implications in the year of 2008 and had to use different business strategies. In regards to the competitive forces, Starbucks had to alter their ideas in order to remain at a competitive level.
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.
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
Case Study Questions & Answers
1. Analyse Starbucks using the competitive forces and value chain models.
The following case study on the global coffee chain Starbucks is based on the ability of competing with the assistance of technology. Companies are using management information systems to assist them in many ways such as product quality and efficiency as well as customer service/customer intimacy. Starbucks is proud owner to 16,850 coffee shops and has internationally opened global franchises. Starbucks hit a few business implications in the year of 2008 and had to use different business strategies. In regards to the competitive forces, Starbucks had to alter their ideas in order to remain at a competitive level.
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.
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